Page 20 - Banking Finance December 2017

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City Union Bank Q2 profit rises 17% to Rs145 crore

Private sector lender City Union Bank reported 17% rise in gross non-performing assets (NPAs) as a percentage of gross
net profit to Rs145 crore for the second quarter ended 30 loans increased to 3.07% at the end of September a year
September, 2017-18. ago, compared to 2.69% a year ago.
The bank had registered a net profit of Rs124 crore during Likewise, net NPAs rose slightly to 1.76% from 1.63% a year
the September quarter of last fiscal. Its total income rose ago. Thus, provisioning for bad loans and contingencies were
to Rs996.12 crore during the quarter under review, from raised by the bank to Rs129.29 crore for the second quarter
Rs894.87 crore in the year ago period, the bank said in a of 2017-18 compared to Rs67 crore in the same quarter of
regulatory filing. Its asset quality deteriorated slightly as the last fiscal.

City Union Bank launches Facebook banking
City Union Bank launched its new initiatives in social media to Rs 996.12 crore from Rs 894.86 crore in the previous
banking and also reported its second quarter profit, which year. Retail banking, which forms nearly 55% of the bank's
rose 17% to Rs 144.75 crore from Rs 123.74 crore on the revenue stream, jumped 11% to Rs 544.93 crore from Rs
back of higher retail banking."We introduced a slew of new 487.83 crore in the previous year.
digital initiatives. Corporate banking grew 10.2% to Rs 243.59 crore from Rs

One is our online loan application on our customers CUB 220.91 crore, while treasury grew 10.8% to Rs 204.49 crore.
net banking account. Customers can avail of this instant
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loan with a few clicks. Another initiative is that customers
Total expenses grew 2.72% to Rs 676.06 crore from Rs
can check their account balance and transfer funds through 658.12 crore. Net interest income -- the difference between
Facebook. We are quite excited about this as it brings us
what the bank pays out as interest on deposits and what it
closer to customers as we use social media for banking,"
earned from loans moved up by 17.8% to Rs 354.84 crore
said N Kamakodi, CEO, City Union Bank.
from Rs 301.21 crore.
City Union Bank customers can visit the bank's Facebook The bank also nearly doubled its provisions against loan
account and click on the send message link to get their
losses to Rs 129.29 crore from Rs 67 crore. Gross non-
enquiries for account balance and online transfer done. The
performing assets (NPAs) as a percentage of advances
bank has also introduced clones of the robot CUB Lakshmi
worsened to 3.07% from 2.69%.
at five other branches in Chennai.
Net NPA worsened to 1.76% from 1.63%. The bank's capital
"We have now enhanced the robot's natural language adequacy as on September 30, 2017 was 15.31%, well above
processing capabilities. CUB Lakshmi can now serve tier-II regulatory requirements.
and tier-III customers in Telugu, Tamil and English. CUB
CASA deposits grew by 21% as on September 2017, which
Lalskhmi is also equipped to handle other queries such as
is 23% of total deposits. "CUB has performed well in a
balance enquiry, cheque book request, submission of Form
challenging environment faced by the banking sector.
15-G/H, raised by our customers," said Kamakodi.
Steady growth in advances and a significant growth in net
CUB's Q2 profit interest income enabled us to post a sizeable profit for the
For the second quarter, the bank's total income grew 11.3% quarter," said the CEO.
City Union Bank Ltd opens 556th branch at Mangalam

City Union Bank Ltd has announced the opening of 556th branch at No.345/13 Palladam to Avinashi Main Road, Mangalam
- 641663, Tamil Nadu.
Shares of CITY UNION BANK LTD. was last trading in BSE at Rs.157.4 as compared to the previous close of Rs. 159.55.
The total number of shares traded during the day was 17184 in over 225 trades.The stock hit an intraday high of Rs. 162
and intraday low of 155.6. The net turnover during the day was Rs. 2717988.

20 | 2017 | DECEMBER | BANKING FINANCE

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