"Profit Before Tax for the quarter was impacted on account of additional provision made to the tune of Rs125 cr towards Covid to meet any future contingency and for the nine months, the same was Rs 482 cr as against Rs 572 cr in 9M FY 2020," City Union Bank said.
Further, the bank's net interest income (NII) improved in Q3FY21 by Rs62 cr from Rs 427 cr in Q3 FY20 to Rs 489 cr in Q3 FY21. Net Interest Margin stood at 4.16% in Q3 FY 21 Vs 3.96% in Q3 FY 20.
Meanwhile, the Gross NPA as on December 31, 2020, was at 2.94% and Net NPA was at 1.47% (Gross NPA as on September 30, 2020, was at 3.44% and Net NPA was at 1.81%). The Provision Coverage Ratio as on December 2020 was at 73%.
City Union Bank said, "The Bank already holds a provision of Rs340 cr for Covid-19 as on September 30, 2020 and during the current quarter the Bank has made an additional provision of Rs125 cr to meet any future contingency arising out of Covid pandemic. Thus, the total provision in this regard held by the bank as on 31st December 2020 is Rs465 cr."
Other key highlights of the earnings are:
Total Deposits of the bank increased by 9% for Q3 FY 2021 to Rs43,288 cr from Rs39,812 cr for the same period as compared to last year. CASA increased by 28% from Rs9,294 cr to Rs11,898 cr (Y-o-Y). CASA portion stood at 27% to total deposits. Cost of Deposits decreased to 5.16% from 6.17% in Q3 FY 20.
Total Advances increased by 8% for 9M FY 2021 to Rs36,504 Cr from Rs33,828 Cr in 9M FY 2020. Credit Deposit ratio stood at 84%. The yield on Advances decreased to 10.16% for the nine months period ended 31.12.2020 from 10.82% for the corresponding period last year.
As on December 31, 2020 the Capital Adequacy Ratio increased to 17.39% (With Tier I 16.31% and Tier II 1.08% as per Basel III norms). RWA reduced from Rs32462 Cr in Mar-20 to Rs30652 cr in Dec-20 mainly due to sanction of ECLGS & increase in Gold loans during 9M ended December 2020. If the profit is taken into account, the CRAR would be 18.89%.
Across business lines, up to December 2020, the Bank has sanctioned Rs2079 cr and disbursed Rs1911 cr under the ECLGS.
At around 2.24 pm, City Union Bank was trading at Rs176.90 per piece down by 3.04% on Sensex.