N. Kamakodi, MD and CEO, City Union Bank Ltd.
City Union Bank Ltd. (CUB) for the primary time is more likely to cross the ₹1,000 crore mark in its net profit during the present fiscal, mentioned its MD and CEO N. Kamakodi.
“We closed the first half with a net profit of ₹508 crore and hope to cross four-digit mark for the first time during this fiscal,” he mentioned during an interplay.
“The bank hopes to achieve this figure despite the headwinds in the operating profit. This may be due to the positive contribution from the credit cost,” he mentioned.
According to him, the present quarter is the highest-ever profit the financial institution had declared in its 120-year historical past. During FY23, CUB had posted a net profit of ₹937 crore.
Regarding the slippages, he mentioned it has come right down to 2.06 of advances to closing advances, nearly equal to pre-COVID stage. For the primary time within the latest previous, reside restoration surpassed the reside slippages and this development is anticipated to proceed.
Net non-performing property (NPAs) have come down beneath the ₹1,000 crore mark after many quarters, and SMA2 numbers to complete advances stood at 2.05% towards 2.45% in Q1.
The personal sector lender can also be taking a look at getting its net NPA to the pre-COVID stage of 1.5%-2% first after which between 1% and 1.5% within the subsequent few quarters.
Mr. Kamakodi knowledgeable that the financial institution commenced the smooth launch of digital lending merchandise that may assist it to attain credit score progress of 10% for FY24. The undertaking is executed by Newgen Software group and coordinated by BCG.
Under the digital lending course of, CUB began MSME lending beneath ₹3 crore in just a few choose branches. By the second half of November, it will be prolonged to all different branches and improve MSME lending to ₹5 crore, adopted by retail lending and renewals.
By the tip of January, at the very least 50% to 60% of the merchandise ought to be into full manufacturing throttle and the remaining one-third could also be in smooth launch or they need to have additionally began giving outcomes, he mentioned.
