CUB turns profit on lower provisions

City Union Bank has reported a standalone net profit of ₹111.18 crore for the fourth quarter ended March 2021, against a net loss of ₹95.29 crore in the year-earlier period on account of lower provisioning.

Provisions and contingencies declined to ₹239 crore from ₹450 crore. Total income contracted to ₹1,121 crore from ₹1,221 crore, it said in a statement.

Total business grew to ₹81,558 crore from ₹75,408 crore. Deposits rose 9% and advances 7%.

Gross non-performing assets rose to 5.11% from 4.09%. Net NPAs rose to 2.97% from 2.20%. Provision coverage ratio stood at 64%. Net interest income rose 9% to ₹1,830 crore. Net interest margin stood at 4%.

During the quarter, the bank had restructured 1,086 accounts amounting to ₹1,116 crore. As of March 31, 1,289 accounts, amounting to ₹1,849 crore, were restructured. The bank holds ₹122 crore as provisions for such accounts.

The bank declared an interim dividend of ₹.0.30 per share.

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