City Union Bank Q3 profit up 12%

CHENNAI: City Union Bank on Wednesday reported third quarter net profit of Rs 126.62 crore, up 12% from Rs 113.05 crore in the year ago period from strength in its retail banking segment.
The private lender earned Rs 811 crore, up 8.5% to Rs 747 crore from its assets in October-December quarter. Total income rose 12% to Rs 953.80 crore from higher sales in retail segment.
The bank's retail banking segment saw sales up 2.1% to Rs 471.14 crore in the third quarter, compared to the same period in the year ago. It earned 18.3% more from its corporate banking division of Rs 246.04 crore. Revenue from treasury operations rose 30% to Rs 233.80 crore.
With demonetisation and higher operating costs, the bank saw total expenses rise 5.7% to Rs 680.22 crore. The bank also hiked its reserves against loan losses as its bad loan book increased. Provisions other than tax and contingencies rose 42% to Rs 91.96 crore from Rs 64.83 crore.
Gross non-performing assets (NPAs) as a percentage of loan advances worsened to 2.98% this quarter, compared to 2.37% for the comparable third-quarter last year. Net NPAs worsened to 1.72% from 1.49% year-over-year.