Kumbakonam-based private sector lender City Union Bank (CUB) on Monday reported an 18.55% decline its net profit to Rs 158 crore for the second quarter of FY21, against Rs 194 crore in the corresponding quarter last fiscal. Total income was almost flat at Rs 1,230 crore, compared with Rs 1,232 crore.
The bank earned a net interest income of Rs 475 crore in Q2 as against Rs 412 cr for the same period last year. Non-interest income was at Rs 169 crore, as against Rs 195 crore, and the treasury income fell to Rs 69 crore from Rs 79 crore.
The gross NPA was at 3.44% as against 3.41% and net NPA stood at 1.81% as compared to 1.90%. The provision coverage ratio was at 70%. ccc
The bank already holds a provision of Rs 225 crore for Covid-19 as on June 30, 2020 and during the current quarter, it has made an additional provision of Rs 115 crore to meet any future contingency arising out of the pandemic. Thus, the total provision in this regard held as on September 30, 2020 was Rs 340 crore.
The net interest margin stood at 4.12% in the quarter under review, against 3.91% in Q2FY20. The NIM increased sequentially, from 3.98% to 4.12%. The capital adequacy ratio increased to 17.36% with tier I at 16.29% and tier II at 1.07%, according to Basel III norms.
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