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City Union Bank has reported 16% growth in net
profit at Rs 182.11 crore for the quarter ended September 2021. The bank has
posted 1% growth in net interest income (NII), while the core fee income of the
bank also improved 12% in Q2FY2022. The Net Interest Margin (NIM) of the bank eased
marginally to 4.03% in Q2FY2022 compared to 4.12% in the corresponding quarter
of previous year.
On business front, the bank as has posted 10% growth
in business with 7% rise in loan book. The asset quality of the bank was stable
in Q2FY2022. Bank has witnessed decline in the credit to deposit ratio to 82.1%
at end September 2021 from 85.6% at end September 2020. However, the CASA ratio
of the bank has jumped to 29.0% at end September 2021 from 25.7% at end September
2020.
Asset
Quality: The bank has maintained
stable asset quality in Q2FY2022.
The fresh slippages of loans stood at Rs 297.4 crore
in Q2FY2022, while the recovery, upgradations and write-off together were at Rs
213.5 crore.
The restructured advances book stood at Rs 2248 crore
at end September 2021.
The stressed assets (NNPA and Standard
restructured asset) of the bank increased to 9.32% of advances at end September
2021 from 8.87% end June 2021 and 3.13% end September 2020.
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Asset Quality Indicators:
City Union Bank
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Sep-21
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Jun-21
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Mar-21
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Dec-20
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Sep-20
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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2119.34
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2035.35
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1893.19
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1071.69
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1220.58
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4
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12
|
74
|
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Net NPA (Rs Crore)
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1294.05
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1242.17
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1075.19
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527.15
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631.44
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4
|
20
|
105
|
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% Gross NPA
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5.58
|
5.59
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5.11
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2.94
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3.44
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-1
|
47
|
214
|
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% Net NPA
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3.48
|
3.49
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2.97
|
1.47
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1.81
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-1
|
51
|
167
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% Provision Coverage
Ratio
|
62.00
|
63.00
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64.00
|
73.00
|
70.00
|
-100
|
-200
|
-800
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% CRAR - Basel III
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19.24
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19.58
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19.52
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17.39
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17.36
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-34
|
-28
|
188
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Tier I - Basel III %
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18.18
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18.51
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18.45
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16.31
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16.29
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-33
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-27
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189
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business
Highlights:
Business growth improves: The business of the
bank has increased 10% YoY to Rs 84328 crore end September 2021, driven by 7% surge
in advances to Rs 38012 crore. Deposits rose 12% to Rs 46316 crore at end
September 2021.
CASA
deposits ratio jumps: The CASA deposits of
the bank surged 26% YoY to Rs 13411 crore at end September 2021. The CASA ratio
galloped to 29.0% at end September 2021 compared to 25.7% at end September
2020.
Retail
loans driving loan growth:
Advances growth was driven by retail loans rising 17% YoY to Rs 6283 crore at
end September 2021, while MSME credit increased 15% to Rs 14182 crore and credit to agriculture jumped 49% YoY to Rs
5983 crore at end September 2021.
The share of secured loans rose to 99.3% at end
September 2021 from 98.9% at end September 2020. The share of retail,
agriculture and MSME loans also jumped to 69.6% at end September 2021 from 61.2%
a year ago.
Investment
book of the bank rose 1% YoY
to Rs 10899.1 crore at end September 2021. The AFS book dipped -53% to Rs 1097 crore,
while HTM book increased 15% to Rs 9803 crore at end September 2021. The AFS
book duration stood at 3.06 years with the overall investment portfolio
duration at 4.25 years at end September 2021.
Margins
ease: The bank has showed sharp
-63 bps YoY decline in cost of funds to 3.93%, while yield on fund also dipped -87
bps YoY to 7.39% in Q2FY2022. Thus, the NIM has eased -9 bps YoY to 4.03%.
Branch
expansion: The bank has network of
702 branches and 1720 ATM`s, operated by 5663 employees end September 2021.
Book
value of the bank stood at Rs
83.9 per share at end September 2021, while the adjusted book value (net of
NNPA and 10% of restructured advances) was Rs 63.3 per share at end September
2021.
Quarterly Performance
Slow
NII growth, as NIM eases:
Bank has recorded -4% decline in the interest earned at Rs 1022.19 crore, while
interest expenses fell -7% to Rs 543.93 crore in Q2FY2022. NII improved 1% to
Rs 478.26 crore in the quarter ended September 2021.
Healthy
growth in the core fee income: Bank has posted strong 12% growth in core fee income to Rs 73 crore,
while the recoveries and other income jumped 118% to Rs 78 crore. However, the
treasury income declined -24% to Rs 52 crore. The overall non-interest income increased
20% to Rs 202.75 crore in the quarter ended September 2021.
Stable
expenses ratio: The operating expenses
of the bank increased 6% to Rs 275.91 crore, as other expenses moved up 6% to
Rs 148.95 crore, while employee expenses rose 6% to Rs 126.96 crore in
Q2FY2022. Cost to income ratio was nearly stable at 40.5% in Q2FY2022 compared
with 40.3% in Q2FY2021, helping the Operating Profit to increase 5% to Rs 405.10
crore.
Provisions
and contingencies decline: The
bank has showed -16% decline in provisions to Rs 148.00 crore.
Effective tax rate rose to 29.2% in Q2FY2022
from 24.1% in Q2FY2021. Net Profit rose by 16% YoY to Rs 182.11 crore during
quarter ended September 2021.
Financial Performance H1FY2022:
Bank has posted 14% increase in net profit to Rs
355.09 crore in the half year ended September 2021. The net interest income
increased 2% to Rs 925.86 crore, while non-interest income declined 21% to Rs 398.40
crore. The net total income moved up 7% to Rs 1324.26 crore in H1FY2022. The
cost-to-income ratio improved to 40.5% in H1FY2022 compared to 40.4% in
H1FY2021. The operating expenses increased 7% to Rs 536.14 crore, while
provision and contingencies declined -5% to Rs 318.03 crore, allowing profit
before tax to increase 16% to Rs 470.09 crore in H1FY2022. An effective tax
rate rose to 24.5% in H1FY2022 compared to 23.4% in H1FY2021. The net profit
has increased 14% to Rs 355.09 crore in H1FY2022.
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City Union Bank: Results
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Particulars
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2109 (3)
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2009 (3)
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Var %
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2109 (6)
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2009 (6)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Interest Earned
|
1022.19
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1060.95
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-4
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2019.62
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2110.31
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-4
|
4134.68
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4168.60
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-1
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Interest Expended
|
543.93
|
585.82
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-7
|
1093.76
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1198.21
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-9
|
2305.02
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2493.41
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-8
|
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Net Interest Income
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478.26
|
475.13
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1
|
925.86
|
912.10
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2
|
1829.66
|
1675.19
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9
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Other Income
|
202.75
|
169.32
|
20
|
398.40
|
329.91
|
21
|
704.77
|
679.95
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4
|
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Net Total Income
|
681.01
|
644.45
|
6
|
1324.26
|
1242.01
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7
|
2534.43
|
2355.14
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8
|
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Operating Expenses
|
275.91
|
259.79
|
6
|
536.14
|
501.31
|
7
|
1050.59
|
1013.74
|
4
|
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Operating Profits
|
405.10
|
384.66
|
5
|
788.12
|
740.70
|
6
|
1483.84
|
1341.40
|
11
|
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Provisions &
Contingencies
|
148.00
|
177.00
|
-16
|
318.03
|
334.00
|
-5
|
791.02
|
755.08
|
5
|
|
Profit Before Tax
|
257.10
|
207.66
|
24
|
470.09
|
406.70
|
16
|
692.82
|
586.32
|
18
|
|
Provisions for Tax
|
75.00
|
50.00
|
50
|
115.00
|
95.00
|
21
|
100.00
|
110.00
|
-9
|
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Net Profit
|
182.11
|
157.67
|
16
|
355.09
|
311.70
|
14
|
592.82
|
476.32
|
24
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EPS*(Rs)
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9.9
|
8.5
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|
9.6
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8.4
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|
8.0
|
6.4
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* Annualized on
current equity of Rs 73.88 crore. Face Value: Rs 1, Figures in Rs crore,
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LP : Loss to profit ;
PL : Profit to loss
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Source: Capitaline
Corporate Database
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