CUB’s feat: 4-digit PAT for the first time
Aided by lower provisions for NPA and a sharp decline in its cost-to-income ratio, Kumbakonam-based City Union Bank, made a net profit of ₹1,016 crore for 2023-24, crossing the ₹1,000-crore mark for the first time in its 120-year history. This was 6 per cent higher than the previous year’s net profit of ₹937 crore. The board of directors has recommended a dividend of ₹1.5 per share (of face value of ₹1).
The bank reported a 17 per cent increase in net profit for the fourth quarter ended March 31, 2024 to ₹255 crore (₹218 crore).
The bank said that its total business had crossed six digits for the first time in its history and stood at ₹1,02,138 crore for FY24 registering a growth of 6 per cent compared with ₹96,369 crore last year.
The bank has made a provision of ₹327 crore for FY24 as against ₹690 crore towards NPA in the corresponding period last year. The recovery was more than the slippages, which had helped in reducing provision requirements, the banks said.
Total bank’s deposits increased by 6 per cent and increased to ₹55,657 crore (₹52,398 crore). CASA portion stood at 31 per cent to total deposits. Cost of deposit stood at 5.75 per cent in Q4FY24 compared to 5.07 per cent in the corresponding quarter last year.
Total advances increased by 6 per cent for Q4FY24 to ₹46,418 crore (₹43,971 crore). Credit Deposit ratio stood at 84 per cent. The yield on advances was at 9.85 per cent for Q4 FY24 compared to 9.31 per cent in Q4FY23.
Gross NPA
The Gross NPA as on March 31, 2024 declined to 3.99 per cent from 4.37 per cent in Q4FY23. Net NPA has come down to ₹899 crore and NNPA has decreased to 1.99 per cent from 2.36 per cent for the same period. NNPA had come below the 2 per cent mark after FY21, the release said.
The bank’s share price on the NSE closed at ₹145.30, down by 5.09 per cent.