Union Bank net profit jumps 12% at Rs 173 cr in Q1

0

Private sector City Union Bank on Friday reported an over 12 per cent rise in its net profit at Rs 173 crore in first quarter ended June 2021 as provisioning for bad loans trimmed. The bank had posted a net profit of Rs 154 crore in the same quarter a year ago.

Total income during April-June 2021 fell to Rs 1,193 crore from Rs 1,210 crore in the same period a year ago, the bank said in a regulatory filing. Interest income was down at Rs 997 crore as against Rs 1,049 crore.

Whereas bank’s treasury and corporate banking income fell during the quarter, that from the retail banking was higher. On the asset front, there was a deterioration as the gross non-performing assets (NPAs) soared to 5.59 per cent of the gross advances as of June 30, 2021 from 3.90 per cent a year ago.

In value terms, the gross NPAs were of Rs 2,035 crore, up from Rs 1,346 crore. Net NPAs (bad loans) too spiked to 3.49 per cent (Rs 1,242 crore) from 2.11 per cent (Rs 716.35 crore). Provisions for bad loans and contingencies for the quarter were raised to Rs 170 crore from Rs 157 crore parked aside for the year ago period.

The lender said an account was classified as fraud amounting to Rs 17.62 crore and it has made provision of Rs 4.40 crore in the June 2021 quarter. The remaining provision of Rs 13.22 crore was created by transfer from general reserves.

Provision coverage ratio stood at 63 per cent as on June 30, 2021, City Union Bank said. Stock of City Union Bank closed at Rs 153.25 apiece on BSE, up 0.13 per cent from the previous close.