Capitaline

Analyst Meet / AGM 02-Feb-19

Conference Call

City Union Bank

Expects to restrict fresh slippages below 2.2% for FY2019

City Union Bank conducted a conference call on 28 January 2019 to discuss the financial results for the quarter ended December 2018 and prospects of the bank. Dr N Kamakodi, MD&CEO of the bank addressed the call:

Highlights:

The bank has recorded 13% growth in deposits, while loan growth was higher at 17% end December 2018. However, the bank believes it would have crossed 18% loan growth in the absence of cyclone GAJA in Tamilnadu on 16 November 2018 which shocked Cauvery delta.

The bank has posted 15% growth in the NII for Q3FY19.

The slippage ratio to closing advances for nine months FY19 is 1.86% and for Q3FY19 is 2.16%. The spike in slippage ratio was on account of the paper mill account as indicated earlier.

The bank does not have any lumpy account at hand as of now unless and otherwise any new account crops up.

The operating profit declined marginally to Rs 902 crore in 9MFY2019 from Rs 913 crore in 9MFY2018 due to non-availability of treasury profit as discussed during earlier concalls.

NPA provisions declined to Rs 189 crore in 9MFY2019 from Rs 248 crore in 9MFY2018.

The bank has been operating at a CD ratio of around 86% without increasing much deposits. As and when there will be credit growth, the bank would go for more on deposits.

The cost to income ratio increased 42.11% in 9MFY2019 as against 38.05% for 9MFY18 mainly on account of non availability of treasury income and reduction in other one time incomes like IT refund, PSLC income.

For Q3 FY19, the gross additions to NPA is Rs 166 crore compared to Rs 132 crore in Q3FY18 and Rs 136 crore in Q2FY19. The bank has recovered a sum of Rs 60 crore in NPA accounts during the third quarter.

The bank has not sold any assets to ARCs in Q3FY2019. No account has been restructured during 9MFY19 and the restructured standard accounts declined to nil end December 2018.

The bank expects credit growth of around 18-20%, while expects to restrict fresh slippages below 2.2% for FY2019. The operating profits will remain under pressure in FY2019.

The bank expects to maintain margins, but still it is not fully convinced that bank will be able to pass on the entire increase in borrowing cost.

Previous News

City Union Bank standalone net profit rises 11.07% in the December 2022 quarter
( Results - Announcements 11-Feb-23 17:31 )

City Union Bank Ltd spurts 2.59%, up for third straight session
( Hot Pursuit - 30-Jul-24 13:05 )

City Union Bank Ltd eases for fifth straight session
( Hot Pursuit - 09-May-24 13:35 )

City Union Bank Ltd rises for third straight session
( Hot Pursuit - 14-May-24 13:05 )

City Union Bank to discuss results
( Corporate News - 16-Oct-23 14:36 )

City Union Bank Ltd gains for third consecutive session
( Hot Pursuit - 05-Jul-22 13:05 )

City Union Bank to hold board meeting
( Corporate News - 28-Jan-22 14:20 )

City Union Bank standalone net profit rises 15.49% in the September 2021 quarter
( Results - Announcements 13-Nov-21 08:17 )

City Union Bank
( Analyst Meet / AGM - Conference Call 02-Aug-24 11:05 )

City Union Bank Ltd up for five straight sessions
( Hot Pursuit - 04-Apr-22 13:00 )

City Union Bank opens 4 new branches across India
( Hot Pursuit - 24-Mar-22 08:43 )