Latest News on City Union Bank
City Union Bank Records Impressive Q3 FY24-25 Results, Noting Significant Reduction in Non-Performing Assets and Elevated Return on Assets.
City Union Bank, a leading private sector bank in India, has reported a strong performance for the third quarter (Q3) of fiscal year 2024-25 (FY24-25). According to the bank’s quarterly earnings report, City Union Bank achieved a net profit of ₹454 crore (approximately $56 million) for Q3 FY24-25, marking a 12.3% year-on-year (YoY) growth.
The bank’s asset quality continued to be a key strength, with the gross non-performing assets (NPAs) ratio remaining low at 2.11%. The net NPAs ratio stood at 0.91%, further indicating the bank’s ability to manage risk and maintain a strong balance sheet. The bank’s provisioning coverage ratio (PCR) also remained high at 89.42%, indicating a healthy buffer to absorb potential stress.
City Union Bank’s performance was driven by a 17.3% YoY growth in net interest income (NII), which accounted for 56.2% of the bank’s total income. The NII growth was primarily driven by a 13.6% YoY growth in average net interest margins (NIMs), which expanded to 3.23% in Q3 FY24-25.
The bank’s other income also showed a healthy growth of 13.2% YoY, driven by an increase in income from forex, investment income, and fee income. Total operating income (TOI) for the quarter stood at ₹1,241 crore (approximately $156 million), a 12.2% YoY growth.
The bank’s return on assets (ROA) stood at 1.47%, while the return on equity (ROE) was 15.4%. The high ROA and ROE demonstrate the bank’s ability to generate returns for its shareholders while maintaining a strong asset base.
In terms of key statistics, the bank’s deposit base grew 11.6% YoY to ₹77,115 crore (approximately $9.5 billion), while the loan book expanded 14.5% YoY to ₹62,335 crore (approximately $7.7 billion). The bank’s capital adequacy ratio (CAR) remained high at 16.31%, indicating its ability to absorb potential losses.
Overall, City Union Bank’s strong Q3 FY24-25 performance highlights its ability to navigate the current economic environment effectively. The bank’s low NPAs, high ROA, and ROE demonstrate its robust asset quality, financial stability, and profitability.
City Union Bank reports strong Q3 results, with both profit and income surging in double digits, accompanied by improved asset quality.
City Union Bank has reported double-digit growth across various financial indicators for the quarter ending December 31, 2024. The bank’s net profit rose by 13% to ₹286 crore, driven by a 20% increase in operating profit. Operating profit grew to ₹436 crore, despite higher provisions, which increased to ₹75 crore. Interest income saw a 12% increase to ₹1,479 crore, while non-interest income grew by 18% to ₹228 crore. Net interest income also increased by 14% to ₹588 crore.
The bank’s asset quality improved significantly, with gross non-performing assets (NPA) decreasing to 3.36% from 4.47% in the same quarter last year. Net NPA also decreased to 1.42% from 2.19% a year ago. Deposits increased by 11% to ₹58,271 crore, while advances grew by 15% to ₹50,409 crore.
For the nine months ending December 31, 2024, the bank reported a net profit of ₹836 crore, a 10% increase from ₹761 crore in the same period last year. The bank’s capital adequacy ratio, in compliance with RBI’s Basel III norms, was 22.26%, with Tier-1 capital adequacy at 21.29%, well above the regulatory requirements.
Overall, City Union Bank’s financial performance for the quarter ending December 31, 2024, was marked by strong growth in operating profit, interest income, and non-interest income, as well as significant improvement in asset quality. The bank’s capital adequacy ratio also remained strong, providing a solid foundation for future growth.
City Union Bank’s Winning Streak Continues at IBA Banking Technology Awards
City Union Bank (CUB) has once again made a mark at the 19th Banking Technology Conference, Expo & Citations 2023, organized by the Indian Banks Association (IBA) in Mumbai. CUB has bagged seven prestigious awards, demonstrating its technological prowess and commitment to innovation and excellence in the banking sector. This is the second consecutive year CUB has received such recognition.
The awards categories include Best AI & ML Bank, Best Fintech & Digital Payment Index (DPI) Adoption, Best Financial Inclusion, as well as four runner-up awards. The Best Technology Bank award is a testament to CUB’s overall excellence in leveraging technology to drive banking innovation.
CUB’s CEO, Dr. N. Kamakodi, along with his dedicated technology team, received the awards from RBI Deputy Governor T. Rabi Sankar. Dr. Kamakodi’s leadership has been instrumental in steering the bank towards continuous technological advancements.
CUB’s repeated success at the IBA’s Banking Technology Awards is part of a broader history of recognition. The bank has consistently been acknowledged for its technological initiatives, having won seven awards at the previous year’s edition as well.
The awards recognize CUB’s efforts in areas such as Artificial Intelligence and Machine Learning, fintech solutions, digital payment systems, financial inclusion, and talent retention. They also highlight the bank’s dedication to embracing technological advancements to enhance customer experience, improve operational efficiency, and promote financial inclusion.
As the banking landscape continues to evolve, CUB’s proactive approach ensures it remains a leader in delivering innovative banking solutions. The bank’s commitment to technology has earned it recognition from reputed organizations, solidifying its position as a frontrunner in the banking industry.
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