City Union Bank's Q4FY18 revenue has improved by 7% yoy to Rs990.5cr. The bank’s NII for the quarter came at Rs368cr as against Rs310.6cr yoy, which is a growth of 18.5%. The bank has reported net profit of Rs152.1cr, (which was below estimates) against Rs128.9cr reported in corresponding quarter last year. Its GNPA for Q4FY18 stood at 3.03% against 3.3% qoq, which has decreased by 27bps. NNPA for the quarter came at 1.7% against 1.74% qoq, which has declined by 4bps.
Higher NII growth was aided by ~17% yoy growth in advances to Rs28,239cr. Good growth was witnessed in MSME, Personal and Wholesale traders. The bank remains cautious in the corporate segment.
Management has guided for 18-20% advances growth for FY19E.
MSME share of total loans has moved up to 34% in FY18 from 30% in FY17.
Yields for Q4Y18 came at 11.19% as against 11.46% for FY18.
NIMs for the quarter came at 4.42% as against 4.41% yoy.
Increase in CASA share and low cost of funds contributed to the improvement in NIM. However, management expects hardening of interest rates and competition may contract margins going ahead.
CD ratio of the bank for FY18 stood at 85% as compared to 79% from FY17.
CASA ratio has improved by 80bps yoy to 24.2%.
The provision for the quarter came at Rs86.2cr as against Rs71.3cr yoy.
Slippages came at Rs150cr as one textile account slipped into NPA.
Bank has 2 accounts in NCLT cases with an exposure of Rs70 cr.
The bank has not done ARC sale during Q4FY18 as well as FY18. Also, the bank has not restructured any accounts during the quarter.
50 branches have been opened during the quarter and the total branches stood at 600 as on FY18 end. It expects to open 75 branches in FY19E.
Management has guided for 1.5-2% slippage ratio for FY19E. It expects cost-to-income ratio to remain at elevated level. Also, as per management, the credit cost for FY19E should not be crossing FY18 figure.
The board has declared bonus in the ratio of 1:10.
City Union Bank Ltd is currently trading at Rs. 182.50, down by 1.55 points or 0.84% from its previous closing of Rs. 184.05 on the BSE.
The scrip opened at Rs. 185 and has touched a high and low of Rs. 190.10 and Rs. 176.25 respectively. So far 19,93,484 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.
Please use the temporary password sent on your email id or mobile no.
Update Mobile no.
Why you need to update your Mobile number ?
By providing verified mobile number we provide more exclusive information in the website.
Update Mobile no.
Terms & Conditions
By clicking on submit button, you authorize IIFL & its representatives & agents to provide information about various products, offers and services provided by IIFL through any mode including telephone calls, SMS, letters etc. . you confirm that laws in relation to unsolicited communication referred in National Do Not Call Registry as laid down by Telecom Regulatory Authority of India will not be applicable for such information/ communication.