City Union Bank Jan-Mar net up 18% at Rs 152 cr

City Union Bank Jan-Mar net up 18% at Rs 152 cr

(Eds: Updating with more information)

New Delhi, May 24 (PTI) City Union Bank today reported a rise of 18 per cent in its net profit at Rs 152.12 crore in last quarter ended March of 2017-18.

The bank had clocked a profit of Rs 128.88 crore in the corresponding January-March period of 2016-17.

During the March quarter, total income of the bank increased to Rs 990.49 crore from Rs 925.75 crore in the year ago period, it said in a regulatory filing.

Net interest income grew by 18 per cent at Rs 367.94 crore during the quarter. Net interest margin stood at 4.36 per cent in January-March.

The bank said it witnessed a robust growth in advances and CASA deposits.

The board of directors has recommended for 2017-18, a dividend of 30 per cent (30 paise) per equity share, it said.

For full year 2017-18, the bank registered an increase of 17.7 per cent in its net profit at Rs 592 crore against Rs 502.77 crore in the previous fiscal ended March 2017.

Total income during the year rose to Rs 3,934.52 crore from Rs 3,657.73 crore in preceding fiscal.

On the asset front, there was an uptick in bad loans with gross non-performing assets (NPAs) standing at 3.03 per cent of gross advances as on March 31, 2018, from 2.83 per cent by end-March 2017. In value terms, gross NPAs were Rs 857 crore against Rs 682 crore.

Net NPAs, however, were down at 1.70 per cent (Rs 475 crore) from 1.71 per cent (Rs 408 crore).

During the quarter, the private sector lender said three fraudulent remittances amounting to Rs 12.13 crore had gone through its SWIFT system which were not initiated by it.

"Out of this, the bank received back Rs 3.25 crore. An amount of Rs 2.22 crore has been blocked and for getting back the remaining amount the bank is taking efforts. During the quarter, the bank had made a provision of Rs 6.66 crore," it said in the filing.

Besides, in third quarter ended December of 2017-18, there were certain improper transactions of Rs 31.55 crore through Visa, Master and NCPI networks through ATM switch which were approved outside the banks network, it added.

"The bank had a cyber insurance cover of Rs 25 crore and insurance claim has been lodged. The bank has provided a sum of Rs 7 crore during the third quarter," it said.

City Union Bank said it board of directors also approved issue of bonus shares in the proportion of 1:10. That is, one bonus equity share for every ten shares held, subject to approval of shareholders.

Stock of City Union traded 0.81 per cent down at Rs 182.55 on BSE. PTI KPM ANS ANS