City Union Bank has reported healthy and improved 13% growth in net profit at Rs 286.01 crore for the quarter ended December 2024 (Q3FY2025). The bank has posted accelerated 14% growth in net interest income (NII), while the core fee income of the bank also improved 22% in Q3FY2025. The Net Interest Margin (NIM) of the bank improved to 3.58% in Q3FY2025 compared to 3.50% in the corresponding quarter of previous year.
On business front, the bank as has posted 12% growth in business with strong 15% surge in loan book. The asset quality of the bank has improved in Q3FY2025. Bank has raised the credit to deposit ratio to 86.5% at end December 2024 from 83.5% at end December 2023. CASA ratio of the bank has declined to 27.7% at end December 2024 from 29.1% at end December 2023.Asset quality improves: The bank has improved asset quality in Q3FY2025.
The fresh slippages of loans stood at Rs 201 crore in Q3FY2025 compared with 176 crore in previous quarter and Rs 187 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 156.5 crore, upgradations at Rs 46.6 crore and the write-off of loans was at Rs 30.5 crore in Q3FY2025. The standard restructured loan book of the bank declined to Rs 663 crore end December 2024 compared to Rs 738 crore a quarter ago. Provision coverage ratio increased to 77% at end December 2024 compared to 75% a quarter ago and 71% a year ago. The capital adequacy ratio of the bank stood at 22.3% with Tier I ratio at 21.3% at end December 2024.| Asset Quality Indicators: City Union Bank | ||||||||
| ' | Dec/24 | Sep/24 | Jun/24 | Mar/24 | Dec/23 | Variation | ||
| QoQ | YTD | YoY | ||||||
| Gross NPA (Rs Crore) | 1693.04 | 1725.50 | 1806.45 | 1854.43 | 1968.11 | -2 | -9 | -14 |
| Net NPA (Rs Crore) | 701.54 | 775.02 | 853.50 | 898.68 | 940.90 | -9 | -22 | -25 |
| % Gross NPA | 3.36 | 3.54 | 3.88 | 3.99 | 4.47 | -18 | -63 | -111 |
| % Net NPA | 1.42 | 1.62 | 1.87 | 1.97 | 2.19 | -20 | -55 | -77 |
| % PCR | 77.00 | 75.00 | 73.00 | 72.00 | 71.00 | 200 | 500 | 600 |
| % CRAR - Basel III | 22.26 | 22.98 | 23.58 | 23.73 | 21.87 | -72 | -147 | 39 |
| % CRAR - Tier I - Basel III | 21.29 | 21.98 | 22.55 | 22.69 | 20.83 | -69 | -140 | 46 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
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Business Highlights:
Healthy business growth: The business of the bank has increased 12% YoY to Rs 108680 crore end December 2024, driven by 15% surge in advances to Rs 50409 crore. Deposits increased 11% to Rs 58271 crore at end December 2024.
CASA deposits ratio ease: The CASA deposits of the bank increased 5% YoY to Rs 16132 crore at end December 2024. The current account deposits increased 8% to Rs 4751 crore, while saving account deposits increased 4% to Rs 11381 crore end December 2024. The CASA ratio declined to 27.7% at end December 2024 compared to 29.1% at end December 2023, while declined from 29.4% a quarter ago. The term deposits have increased 13% to Rs 42139 crore end December 2024.
Strong loan growth: Advances growth was driven by retail loans rising 21% YoY to Rs 13663 crore at end December 2024, while credit to agriculture increased 29% to Rs 9008 crore and MSME 10% to Rs 19811 crore at end December 2024. The corporate credit rose 2% to Rs 7927 crore end December 2024.
Investment book of the bank increased 2% YoY to Rs 15986 crore at end December 2024. The AFS book dipped 33% to Rs 2433 crore, while HTM book rose 11% to Rs 13373 crore at end December 2024. The duration of the overall investment portfolio stood at 3.32 years and AFS portfolio was at 3.9% end December 2024.
Margins improve: The bank has showed 21 bps YoY jump in cost of deposits to 5.88%, while yield on advances increased 19 bps YoY to 9.81% in Q3FY2025. NIM has improved 8 bps YoY, while eased 9 bps qoq to 3.58% in Q3FY2025.
Branch expansion: The bank has added 10 branches and 11 ATMs in Q3FY2025, taking overall tally to 822 branches and 1693 ATM`s end December 2024.
Book value of the bank stood at Rs 123.7 per share at end December 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 113.3 per share at end December 2024.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 11% increase in the interest earned at Rs 1478.74 crore, while interest expenses increased 10% to Rs 890.99 crore in Q3FY2025. NII improved 14% to Rs 587.75 crore in the quarter ended December 2024.
Healthy growth in the core fee income: Bank has posted strong 22% growth in core fee income to Rs 111 crore, while the recoveries and other income jumped 28% to Rs 99 crore. However, the treasury income declined 26% to Rs 18 crore. The overall non-interest income increased 18% to Rs 228.39 crore in the quarter ended December 2024.
Expenses ratio improves: The operating expenses of the bank increased 10% to Rs 380.13 crore, as other expenses moved up 7% to Rs 201.61 crore, while employee expenses increased 15% to Rs 178.52 crore in Q3FY2025. Cost to income ratio improved to 46.6% in Q3FY2025 compared with 48.6% in Q3FY2024, helping the Operating Profit to increase 20% to Rs 436.01 crore.
Provisions and contingencies jumps: The bank has showed 63% jump in provisions to Rs 75 crore.
Effective tax rate rose to 20.8% in Q3FY2025 from 20.4% in Q3FY2024. Net Profit rose by 13% YoY to Rs 286.01 crore during quarter ended December 2024.
Financial Performance 9MFY2025:
Bank has posted 10% increase in net profit to Rs 835.66 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 9% to Rs 1715.39 crore, while non-interest income moved up 14% to Rs 646.84 crore, pushing up net total income by 10% to Rs 2362.23 crore in 9MFY2025. The operating expenses increased 15% to Rs 1124.57 crore, while provision and contingencies dipped 28% to Rs 184.00 crore, allowing profit before tax to increase 16% to Rs 1053.66 crore in 9MFY2025. The cost-to-income ratio rose to 47.6% in 9MFY2025 compared to 45.6% in 9MFY2024. An effective tax rate increased to 20.7% in 9MFY2025 compared to 16.5% in 9MFY2024. The net profit has increased 10% to Rs 835.66 crore in 9MFY2025.| City Union Bank: Results | |||||||||
| Particulars | 2412 (3) | 2312 (3) | Var % | 2412 (9) | 2312 (9) | Var % | 2403 (12) | 2303 (12) | Var % |
| Interest Earned | 1478.74 | 1326.24 | 11 | 4301.32 | 3896.45 | 10 | 5270.57 | 4714.34 | 12 |
| Interest Expended | 890.99 | 810.31 | 10 | 2585.93 | 2319.56 | 11 | 3147.10 | 2551.54 | 23 |
| Net Interest Income | 587.75 | 515.93 | 14 | 1715.39 | 1576.89 | 9 | 2123.47 | 2162.80 | -2 |
| Other Income | 228.39 | 192.88 | 18 | 646.84 | 566.43 | 14 | 741.66 | 810.36 | -8 |
| Net Total Income | 816.14 | 708.81 | 15 | 2362.23 | 2143.32 | 10 | 2865.13 | 2973.16 | -4 |
| Operating Expenses | 380.13 | 344.77 | 10 | 1124.57 | 978.41 | 15 | 1348.39 | 1155.17 | 17 |
| Operating Profits | 436.01 | 364.04 | 20 | 1237.66 | 1164.91 | 6 | 1516.74 | 1817.99 | -17 |
| Provisions & Contingencies | 75.00 | 46.00 | 63 | 184.00 | 254.00 | -28 | 286.00 | 640.50 | -55 |
| Profit Before Tax | 361.01 | 318.04 | 14 | 1053.66 | 910.91 | 16 | 1230.74 | 1177.49 | 5 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 361.01 | 318.04 | 14 | 1053.66 | 910.91 | 16 | 1230.74 | 1177.49 | 5 |
| Provision for tax | 75.00 | 65.00 | 15 | 218.00 | 150.00 | 45 | 215.00 | 240.00 | -10 |
| PAT | 286.01 | 253.04 | 13 | 835.66 | 760.91 | 10 | 1015.74 | 937.49 | 8 |
| EPS*(Rs) | 15.4 | 13.7 | ' | 15.0 | 13.7 | ' | 13.7 | 12.7 | ' |
| Adj BV (Rs) | 113.3 | 96.1 | ' | 113.3 | 96.1 | ' | 100.2 | 85.5 | ' |
| * Annualized on current equity of Rs 74.10 crore. Face Value: Rs 1, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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