City Union Bank Q3 net up 15% at Rs 102.70 crore

Chennai: City Union Bank Saturday reported an over 15 percent increase in its net profit at Rs 102.70 crore for the quarter ended December 31, 2014.

The bank's net profit stood at Rs 89.09 crore in the corresponding quarter a year ago, its MD & CEO N Kamakoti told reporters.

A 25 percent growth in operating profit and 44 percent growth in total provisions besides restructuring of assets had spurred this growth.

Total business grew by Rs 40,171 crore at 9 percent even as deposits increased by 10 percent to Rs 23,203 crore as on December 31, 2014 from Rs 21,116 crore a year ago, he said.

Gross and net NPA stood at 2.12 percent and 1.31 percent respectively, he said.

The recovery was Rs 37 crore in the quarter against the Rs 59 crore last year, he said, adding "recovery has been slightly getting difficult as real estate market is slow."

Responding to a query regarding the lending to Spicejet, Kamakoti said that the net exposure of Rs 100 crore has been "collateralised by immoveable collaterals," and that there was no overdue.

"The account is in order and there is no overdue," he said.