City Union Bank

This small bank has consistently posted a good set of numbers, quarter after quarter. And in a quarter where many banks have disappointed, it once again regaled the market with a robust set of numbers for Q1Fy13. Helped by a good growth in retail banking and treasury, the bank posted a  26.3% growth in net profit at Rs.73.89 crore on a YoY. Total income was up 36% at Rs.567 crore. Gross NPA was down from 1.22% to 1.07% and net NPA was down marginally from 0.51% to 0.5% on a YoY. But sequentially, it has gone up from 0.44%. Its capital adequacy ratio was at 12% versus 12.57%, (QoQ).

Interest income rose 36% and NII was up 37%. As was indicated in Q4Fy12, NIM continues to show pressure; it was down at 3.18% from 3.39% (QoQ). The provision coverage ratio as on June 30, 2012, stood at 75%, down from 76.81% in Q4Fy12. Total deposits rose 25% while advances grew 33% (YoY).  The bank has planned on a Rs.250 crore rights issue, scaled down from earlier planned Rs.400 crore and is likely to hit the market by the end of October or early November.  It hopes to achieve a growth of 20-30% in current fiscal despite the current economic downturn and expects NIM to be maintained at current levels. There is no promoter holding as such in this bank, with institutions holding 29.14% of which L&T Finance holds 4.7% stake.