Net Interest Income (NII) grew by 19% to Rs 567.91 crore in Q2 FY23 as compared to Rs 478.26 crore in Q2 FY22. For Q2 FY23, the NIM was at 4.09% as against 3.95% in the corresponding period last year.

The bank's operating profit before provisions and contingencies increased 13% to Rs 456.45 crore in Q2 FY23 as compared to Rs 405.10 crore recorded in Q2 FY22.

The bank made a provision of Rs 180 crore as of 30 September 2022. The total provision towards bad and doubtful debts was Rs 105 crore in Q2 FY23 as against Rs 118 crore reported in the corresponding quarter last year. Provision coverage ratio (PCR) stood at 66% in Q2 FY23.

On asset quality front, the gross non performing assets (GNPA) declined by 12.15% to Rs 18,618 crore in Q2 FY23 as against Rs 21,193 crore in Q2 FY22.The ratio of gross NPA stood at 4.36% in Q2 FY23 as compared to 5.58% in Q2 FY22. The ratio of net NPA stood at 2.69% in Q2 FY23 as compared with 3.48% in Q2 FY22.

Total deposits of the bank increased 8% for Q2 FY23 to Rs 49,878 crore from Rs 46,316 crore recorded in the corresponding quarter previous year. CASA rose 16% to Rs 15,609 crore in Q2 FY23 as against Rs 13,411 crore reported in Q2 FY22. CASA portion stood at 31.30% to total deposits.

Total advances increased by 12% in Q2 FY23 to Rs 42,702 crore from Rs 38,012 crore posted in Q2 FY22. Cost of deposits decreased to 4.51% in Q2 FY23 from 4.82% in Q1 FY22.

Return on assets (RoA) for Q2 FY23 improved to 1.72% as compared with 1.32% for the same period a year ago. Meanwhile, Return on equity (RoE) grew to 15.98% in Q2 FY23 as against 11.96% reported in Q2 FY22.

The bank's capital adequacy as on 30 September 2022 as per Reserve Bank of India (RBI) guidelines on basel III norms is 20.08% and tier-1 capital adequacy stood at 19.02%, well above regulatory requirements.

City Union Bank offers a wide range of banking and financial services across India, including both domestic and International banking services. It is a private sector bank with 727 branches across 16 states and three Union territories.

The scrip rose 1.33% to close at Rs 190.15 on the BSE on Friday.