City Union Bank Q4 Review  - Asset Quality Improves; RoA Normalisation Some Time Away: Dolat Capital

A woman carries a new Indian two thousand rupee banknote at a bank in Dadri, Uttar Pradesh. (Photographer Anindito Mukherjee/Bloomberg)

City Union Bank Q4 Review - Asset Quality Improves; RoA Normalisation Some Time Away: Dolat Capital

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 weaker than anticipated operating metrics and profit after tax led by high interest reversals and elevated provisions.

Profit after tax would have been further lower if not for the tax reversals during the quarter.

However, asset quality surprised positively, with marginal slippages for Q4 FY21 post intra quarter recoveries resulting in 100 basis points QoQ decline in pro forma gross non performing asset to 5.1% and ~40 basis points sequential decline in pro forma net non performing asset to 2.97%.

Sequential reduction in non-performing asset ratios was partly also supported by high write-offs.

Click on the attachment to read the full report:

Dolat Capital City Union Bank Q4FY21 Result Update.pdf

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