City Union up over 4.5%

At a time when the market has a complete disdain for banking stocks, especially PSU banking stocks, given the sharp deterioration in their asset quality, City Union Bank jumped up over 4.5% at Rs.48.65, closer to its intra day high levels of Rs.48.80. Volumes are pretty good at 64,000 shares compared to 55,000 shares over past two weeks average.

The Bank announced a set of much better numbers though there was a marginal rise in Gross NPA at 1.25% compared to 1.13% (QoQ). Net NPA remained unchanged at 0.63%. The performance otherwise is good. Net profit at Rs.90 crore, was up 22% (YoY) and NII came in at Rs.187 crore, up 35%. The Bank has also reduced its provisions from Rs.44 crore to Rs.20 crore (QoQ). The Bank is now seeking shareholders' nod for a Rs 350 crore QIP issue