City Union Bank reported a 15 % jump in net profit at Rs 107.84 crore for the second quarter ended September 30, mainly due to drop in cost of deposits.
The Tamil Nadu-based bank had recorded a net profit of Rs 93.74 crore during the same period of previous year, City Union Bank Managing Director and CEO N Kamakodi said.
“Financial years 2014 and 2015 have been very challenging for us. Our growth moderated to almost single digits. Majority of the growth happened because the cost factor is very much in control and there is a drop in cost of deposits.
All these factors cumulatively led to a 15 % increase”, he told reporters here. For the April-September period, net profits of the private sector lender rose 13.54 % to Rs 219.40 crore. Total income of the bank for July-September quarter rose to Rs 829.44 crore from Rs 772.99 crore during corresponding period of 2014-15 fiscal.
For the half year, total income of the bank increased to Rs 1,640.38 crore from Rs 1,527.02 crore during same period of previous year. During the second quarter, gross Non-performing Assets (NPAs) rose to 2.10 % from 2 % at the end of second quarter of 2014-15.
Net NPA of the bank also increased to 1.36 % from 1.30 % of the total assets.
Responding to a query, Kamakodi said the cost of deposits which was 8.22 % as of September 30 last year declined to 7.69 % as of September 30, 2015. On the outlook for this fiscal, he said, “we expect to maintain 12-15 % growth in terms of credit growth and about 10-12 % in terms of profits after tax”.
