City Union Bank's first quarter net up by 26.3%

City Union Bank’s first quarter net profit increased by 26.3 per cent at Rs. 73.89 crore from Rs. 58.51 crore the previous year.

The bank's healthy growth in its performance in the first quarter ended June 30, 2012 is attributed to a significant contribution from corporate and retail segments.

Total income has risen by 36 per cent to Rs. 560.90 crore from Rs. 417.02 crore in the same period in the previous year.

Interest income registered a rise of 35.9 per cent to Rs. 504.21 crore from Rs. 371.14 crore, and non-interest income 37 per cent to Rs. 62.69 crore from Rs.45.8 crore.

N. Kamakodi, CUB Managing Director and CEO, said the bank could maintain its growth rate in all parameters for the past few quarterly cycles.

The net interest margin was 3.18 per cent for the quarter under reference. Mr. Kamokodi said he was hopeful of maintaining the net interest margin in the current quarter. On the possibility of a reduction in interest rates, Mr. Kamakodi said the bank’s board was looking for a complete clarity on the market scenario before taking a decision.

On the proposed rights issue, he said the bank had fixed the rights issue size at Rs. 250 crore, and had submitted the proposal to the Securities and Exchange Board of India. The ratio and the premium would be decided in due course, he said.

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