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.