City Union Bank's net profit in March quarter up y-o-y by 17%

21 May 2024 , 12:31 PM

On Monday, City Union Bank said that its fourth-quarter net profit increased by 17% YoY to ₹254.82 Crore. The difference between interest earned and interest spent, or net interest income (NII), increased 6% year over year to ₹546.58 Crore during the quarter. On Tuesday morning, the company’s shares were down more than 3.5%.

During the quarter, the bank recorded a 9% increase in its total income of ₹1,549.35 Crore. Concurrently, the lender’s operating profit experienced a 16% decrease, amounting to ₹351.82 Crore. The gross non-performing assets (NPA) ratio decreased to 3.99% from 4.37% in the same quarter of the previous fiscal year, indicating an improvement in asset quality. The net non-performing asset ratio decreased to 1.99% from 2.36% in Q4FY23.

The lender announced an 8% increase in its net profit to ₹1,015.74 Crore for the entire fiscal year 2024. However, NII suffered a 2% decline in growth during the year, coming in at ₹2,123.47 Crore. In FY24, operating profit dropped 20% year over year to ₹1,516.74 Crore.

According to the bank, its net interest margin (NIM) was 3.65% for FY24 and 3.66% for Q4 of FY24. According to the lender, NIM is within the guidance ranges. According to Reserve Bank of India (RBI) recommendations on Basel III criteria, as of March 31, 2024, its capital adequacy stood at 23.84%, while tier-1 capital adequacy stood at 22.80%.

The lender said that, for the first time in its existence, its total business had surpassed six figures and was ₹1,02,138 Crore for FY24—a 6% increase over ₹96,369 Crore the previous year.

According to City Union Bank (CIR), the cost-to-income ratio climbed from 38.85% in the previous fiscal year to 47.06% in FY24. “The implementation of the digital lending process is resulting in additional labour costs and IT infrastructure costs, which are maintaining the CIR at elevated levels,” the statement stated.

Since the start of the year, the lender’s stock has dropped by more than 3%. Throughout the past year, the stock has increased by about 5%.

For feedback and suggestions, write to us at [e-mail]

For opening a demat account click on: https://www.indiainfoline.com/

For doing stock trading & investments, go to: https://ttweb.indiainfoline.com/trade/Login.aspx

For loans, go to: https://www.iifl.com/