City Union Bank Q3 - Improving Turnaround Time; Re-Rating Dependent On Pickup In Growth Ahead: Nirmal Bang

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Citi Union Bank Ltd.’s profit after tax for Q3 FY24 stood at Rs 2.5 billion (up by 16.2% YoY); supported by lower credit cost (down by 79.5% YoY). Net Interest Income for Q3 FY24 stood at Rs 5.2 billion (down by 7.2% YoY and 4.2% QoQ) on account of Higher re-pricing of deposits (cost of deposits inched up by 16 basis points QoQ) and Impact of one off line items relating to interest income reversal of Rs 250 million due to a restructured funded interest term loan account turning non performing assets. Reported net interest margins stood at 3.5% for Q3 FY24 (down by 24 basis point QoQ). .Adjusting for the interest reversal, net interest margins for Q3 FY24 would have been 3.67% (down marginally by 7 basis points QoQ as compared to reported decline of 24 basis points). Operating profit was down 26.8% YoY (down by 5.8% QoQ); largely on account ofLower other income (down by 14.0% YoY; on account of lower treasury income) andHigher operating expenses (up by 21.9% YoY; as the bank continued to incur cost in its automation process). The management indicated that lower slippages and higher recoveries in live accounts is expected to continue to support profit after tax growth for next two-three quarters..Further, the management expects to end FY24 withFour-digit profit after tax (in crores),Substantial reduction in non performing assets,Improved coverage ratio andReturn on assets of ~1.5%..Click on the attachment to read the full report:.City Union Bank Q3 Results Review - Net Interest Margins Declined; Credit Growth Remain Subdued: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

City Union Bank Q3 - Improving Turnaround Time; Re-Rating Dependent On Pickup In Growth Ahead: Nirmal Bang

Advance growth guidance lowered closer to double digits for FY24

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