CUB Q3 net profit slips 11% on provisions

Private sector lender City Union Bank Ltd.โ€™s (CUB) standalone net profit for the third quarter ended December declined 11% to โ‚น170 crore from โ‚น192 crore.

Net interest income rose by 14% to โ‚น489 crore and interest income contracted to โ‚น1,048 crore from โ‚น1,061 crore.

Net interest margin increased to 4.16% from 3.96%, the bank said in a regulatory filing.

During the quarter, the lender made a total provision of โ‚น289 crore, of which โ‚น125 crore was towards COVID-19, โ‚น70 crore for income tax and โ‚น50 crore towards standards assets among others.

The private sector lender also restructured 60 accounts amounting to โ‚น321 crore.

Capital Adequacy Ratio increased to 17.39%. Provision coverage ratio stood at 73%. No addition to NPA were made the during the quarter, because of standstill clause.

Due to that Gross non-performing asset (NPA) declined to 2.94% from 3.5%, totalling โ‚น1,072 crore and net NPAs to 1.47% from 1.95%, totalling โ‚น527 crore.

Up to December 2020, the bank had sanctioned โ‚น2,079 crore and disbursed โ‚น1,911 crore under the ECLGS.

For the nine monthsโ€™ period, total business grew 8% to โ‚น79,792 crore while CASA deposits increased 28% to โ‚น11,898 crore.

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