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. It posted a 17% rise in net profit during current Q3 at Rs.85.22 crore and this was on a 27% growth in total income at Rs.621.46 crore. Once again retail banking was the growth driver, contributing 53% to the total income, corporate/wholesale banking contributed 30% and Treasury contributed 17%. Net interest income rose 33% (YoY).

There is some worry on asset quality. Gross NPA rose to Rs 178.73 crore from Rs 129.16 crore, but in temrs of percentage, it was rose from 1.17% to 1.23% and net NPA rose to Rs 91.43 crore from Rs 56.07 crore. Like Gross NPA, net also rose in percentage terms, up from 0.51% to 0.63%. Its capital adequacy ratio (CAR) as per Basel II was at 12.39% v/s 12.35% on YoY. Net interest margin improved to 3.45% from 3.24% on YoY. The bank’s deposits grew 24% at Rs.19,044 crore and advances rose 32% at Rs.14,512 crore (YoY). 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 30.84% of which L&T Finance holds 4.68% stake. LIC holds 4.23%.