City Union Bank Q4 Review - Stressed Asset Formation Within Guided Range: ICICI Securities
Indian rupee banknotes are counted in India. (Photographer: Dhiraj Singh/Bloomberg)

City Union Bank Q4 Review - Stressed Asset Formation Within Guided Range: ICICI Securities

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.

ICICI Securities Report

City Union Bank Ltd.’s Q4 FY21/FY21 performance was characterised by incremental stressed asset formation at lower end of the guided range as reflected in:

  1. gross slippages at 3% versus guidance of 3-3.5%, and
  2. total restructuring at 5% of advances versus guidance of 5-6%.

Emergency Credit Line Guarantee Scheme disbursements stood at ~Rs 21 billion, or 5.6% of advances.

Despite elevated credit cost at 2.3% due to total stressed pool (net non performing loan, restructuring, ECLGS) at ~13.6%, strong core operating profitability (pro provision operating profit at ~3%) and lower tax rate of 14%, return on asset improved to 1.15% in FY21 versus 1% in FY20.

Click on the attachment to read the full report:

ICICI Securities City Union Bank Q4FY21 Result Update.pdf

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