BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
City Union Bank Ltd. reported a good set of numbers with sequential improvement in net interest margin (to 4%), improving asset quality metrics with better than expected slippages/restructuring, and decline in special mention account book.
Caution on lending however continued, with incremental growth mostly coming from safer segments like gold.
City Union Bank's asset quality metrics were better than expected with sequential decline in slippages to 3.2% (5.3% in Q1 FY22), limited incremental restructuring at 0.5% of loans taking the total restructured book to 6% of net advances, and decline in SMA-II ratio by 60 bps QoQ to 2.75%.
Overall SMA book (including 0/I/II) stands at 8-10% and is better than pre-Covid-19 times, due to daily marking of non performing asset and high regulatory forbearance.
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