City Union Bank Q2 Results Review - Margin Expansion, Lower Provisions Aid Profitability: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.City Union Bank Ltd.’s net profit grew by 51.8% YoY to Rs 2.7 billion, led by margin expansion and lower provisions. Balance sheet growth was moderate as the credit book increased by 12.9% YoY while deposits grew by 7.7% YoY. On the operational front, the bank reported healthy numbers, driven by margin expansion (14 bps QoQ; 6 bps YoY), contained operating costs and lower provisions on the back of improving asset quality. Treasury and other income declined, impacting net revenue growth. Overall asset quality continued to improve on a sequential basis, driven by healthy recoveries and lower slippages. We expect asset quality to likely improve further on the back of higher TW recoveries. Balance sheet growth remains below system growth, but the management expects growth to pick up pace with most of it likely to be back-ended and reiterated credit growth of ~15-18% for FY23. City Union Bank’s liquidity and capitalisation position remains robust. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

City Union Bank Q2 Results Review - Margin Expansion, Lower Provisions Aid Profitability: Nirmal Bang

The Bank's liquidity and capitalisation position remains robust.

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