Financial Performance Q2FY2021:
1. Net Interest Income
The Bank earned a Net Interest Income of Rs475cr as against Rs412cr for the same period as compared to last year.
2. Non Interest Income
Non Interest Income of the Bank is at Rs169cr in Q2FY2021 as against Rs195cr for Q2FY 20. The income earned on CEB & Charges decreased by Rs11crs from Rs76cr in Q2FY 20 to Rs65cr in Q2FY21 based on the instructions from Finance Ministry wrt waiver of charges due to COVID impact in Q1 FY21. The treasury income reduced to Rs69cr in Q2FY21 Vs Rs79crs in Q2FY 20.
3. Operating Expenses
The operating expense for Q2FY21 is at Rs260cr and was same during the previous year. Establishment expenses increased from Rs113cr in Q2FY 20 to Rs120cr in Q2FY21 and all other operating expenses marginally decreased from Rs147cr to Rs140cr in Q2FY21.
4. Operating Profit
Thus, the Operating Profit for Q2FY2021 was Rs385cr as against Rs347cr for the same period as compared to the last year.
The Bank already holds a provision of Rs225cr for Covid-19 as on June 30, 2020 and during the current quarter the Bank has made an additional provision of Rs115cr to meet any future contingency arising out of Covid pandemic. Thus, the total provision in this regard held by the bank as on 30th September 2020 is Rs340cr.
6. Net Profit
The Bank’s Profit after Tax was at Rs158cr in Q2FY2021 as against Rs194cr in Q2FY 2020. Profit Before Tax for the quarter was impacted on account of additional provision made to the tune of Rs115cr towards Covid to meet any future contingency.
Total Deposits of the bank marginally increased by 2% for Q2FY2021 to Rs41,421cr from Rs40,451cr for the same period as compared to last year. We have not pushed for growth because of covid and to protect the margins along with optimum level ofcredit deposit ratio, the deposit position was kept muted in H1 FY21. However, we will push for growth if situation warrants by way of any surge in advances in the second half of FY21. CASA increased by 7% from Rs9,988cr to Rs10,645cr (Y-o-Y). CASA portion stood at 25.70% to total deposits. Cost of Deposits decreased to 5.54% from 6.25% in Q2FY 20.
Total Advances increased by 6% for Q2FY2021 to Rs35,437cr from Rs33,279cr in Q2FY 2020.credit Deposit ratio stood at 86%. The yield on Advances decreased to 10.21% in Q2FY21 from 10.76% in Q2FY 20.
9. Asset Quality
The Gross NPA as on September 30, 2020 was at 3.44% and Net NPA was at 1.81% (Gross NPA as on June 30, 2020 was at 3.90% and Net NPA was at 2.11%). The Provision Coverage Ratio as on September, 2020 was at 70%. No addition to NPA during Q2FY21 because of standstill clause as per the direction of Supreme Court. Due to that Net NPA stands reduced to 1.81% in Sep-20 from 2.29% in Mar-20.
10. Net Interest Margin
Net Interest Margin stood at 4.12% in Q2FY21 Vs 3.91% in Q2FY20. NIM has increased sequentially from 3.98% in Q1FY21 to 4.12% in Q2FY21.
11. Capital Adequacy
As on September 30, 2020 the Capital Adequacy Ratio increased to 17.36% (With Tier I 16.29% and Tier II 1.07% as per Basel III norms). RWA reduced from Rs32,462cr in Mar-20 to Rs30,912cr in Sep-20 mainly due to sanction of ECLGS & increase in Gold loans during H1 FY21.
12. Return on Assets
Return on assets for the quarter is 1.23% as against 1.62% for the same period of last year.
13. Return on Equity
Return on Equity was at 11.50% in Q2FY2021 as compared to 15.18% in Q2FY2020.
14. Cost Income Ratio
Cost to Income Ratio reduced to 40.31% in Q2FY2021 from 42.87% in Q2FY 2020. The reduction was on account of improvement in Net Interest Income.
The Bank has extended the option to all the borrowers to avail moratorium as per the RBI instructions. During June quarter accounts covering an exposure of 1.76% of CC & 26.54% of Term loan, on total 12.45% of exposure did not received even single payment utilizing moratorium fully. That number currently stands at 0.65% of CC exposure, 19.12% of Term loan exposure and 9.03% of total exposure, where not even a single payment received during moratorium period. Out of them, 0.10% of cc exposure, 10.76% term loan exposure & 4.94% of total exposure have paid the demand portion of one monthly installment in the month of September 2020. Of the balance 4.09% of exposure have not paid anything till now, we expect many of them would opt for restructuring since the time is available upto 31.12.2020 for NonMSME and 31.03.2021 for MSME.
Across business lines, upto October 2020, the Bank has sanctioned Rs1967cr and disbursed Rs1,691crs under the ECLGS.
In terms of RBI Circular DOR No.BP.BC.34/21.04.048/2019-20 dt 11.02.2020 and DOR.No.BP.BC/4/21.04.048/2020-21 dated 06.08.2020 - Restructuring of Advances, the bank has restructured 11 Standard accounts to the tune of Rs79cr in Q2FY2021. As of H1 FY21, the total outstanding restructured Standard accounts was 175 in numbers and amounting to Rs478cr. The Bank hold a provision of Rs14cr against the requirement of Rs13cr towards Restructured Standard accounts.
Green MPIN for CUB NetBanking / Mobile Banking
New Internet banking/Mobile banking users are facilitated with generating Internet Banking password/transaction password/Green MPIN online in the CUB Netbanking /Mobile banking. Customer needs to input the Customer ID, branch name, ATM Card and PIN (OR) Date of Birth and PAN and set the Net banking login/ transaction password/MPIN for mobile Banking. Post confirmation, Customer can start using Net/Mobile banking application. This facility is available for both iOS and Android versions
Mobile banking login using Bio-metric authentication
Our latest version of Android / iOS Mobile Banking Application has been updated with biometric (fingerprint) authentication feature enabled. This cool feature allows customers to quickly login to their mobile banking using their fingerprint comparing to other login methods (Password/MPIN). Existing login methods also will continue.
Corporate Mobile Banking
New Mobile Banking App CUB CORP has been implemented for the benefit of our Corporate Banking customeRsCorporate customers can download this app from Google Play store and start using the Mobile App for doing banking transactions within the limit available under Net Banking facility.
Video KYC verification
Now new customers can open the accounts using the CUB EASY app. The account will be opened instantly. The KYC verification can be done through Video KYC process at the preferred time of the customer. The process is very simple. Customers can start using the accounts without visiting the branches.
Online ASBA for applying to IPO / Rights share issues/Sovereign Gold Bond[SGB]
The facility of registering the DP details and applying for shares in IPO/Rights issues and also for purchasing Sovereign Gold Bond [SGB] is made available in our Net banking/ Mobile Banking applications under the menu ASBA.
City Union Bank Ltd is trading at Rs154.50per piece up by Rs2.05 or 1.34% from its previous closing of Rs152.45 on the BSE, at 11:31am.