City Union Bank net profit rises 15 pc to Rs 194 cr in Q2

City Union Bank on Thursday reported a 15.2 percent rise in its net profit to Rs 193.53 crore for the second quarter ended September 30. It had posted a net profit of Rs 167.99 crore in the corresponding quarter of 2018-19.

Total income during the September 2019 quarter rose to Rs 1,231.80 crore from Rs 1,045.04 crore in the year-ago quarter, the bank said in a regulatory filing. Its interest income stood at Rs 1,036.82 crore, higher as compared with Rs 926.49 crore in the year-ago period.

The lender, however, witnessed a rise in its bad loan proportion as gross non-performing assets (NPAs) rose to 3.41 per cent (Rs 1,135.44 crore) of the gross advances at the end of the second quarter, from 2.85 percent a year ago. Net NPAs were up at 1.90 percent (Rs 624.08 crore) from 1.69 percent (Rs 497.78 crore).

The bank said it has opted for the reduced tax rate of 22 percent as per the amended net tax rules and the impact of the changes have been fully recognized in its profit and loss account for the second quarter and half year ended September. Shares of City Union Bank on Thursday rose nearly three percent on the BSE.

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