City Union Bank Q3 Review - Near Term Stress Higher, But Sufficient Cover: Centrum Broking
A customer waits to deposit Indian 100 rupee banknotes at a counter inside a bank branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

City Union Bank Q3 Review - Near Term Stress Higher, But Sufficient Cover: Centrum Broking

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.

Centrum Broking Report

City Union Bank Ltd.’s earnings were mixed with a strong operating performance but asset quality surprised negatively.

Net interest income was a beat driven by better net interest margin (led by further reduction in funding cost) while loan growth (up 7.9% YoY) was a tad higher.

Other income too outperformed led by better fee income and higher treasury gains.

Provisions rose as Rs 1.25 billion was provided to strengthen the balance sheet (Covid-19 provisions Rs 4.65 billion).

Proforma gross non-performing asset/net non-performing asset basis recognition from September 2020, spiked to 6.0%/3.4% (QoQ 3.8%/2/2%), with overall restructuring being guided at 5%.

Click on the attachment to read the full report:

Centrum Broking City Union Bank - Q3FY21 Results Update .pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint 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 BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.