City Union Bank net profit up by 26.51% to Rs.40.65 Crore

Kumbakonam, 30 January 2010:

The Board of Directors of CITY UNION BANK LTD took on record the un-audited results of Q3 and for Nine months ended 31.12.2009-FY2009-10 at its meeting held in Kumbakonam, today.

Net Interest income for Q3 – FY 2010 was up by 19.05% to Rs.75.28 crore as compared to Rs.63.23 crore for Q3 – FY 2009. Operating profit for Q3 – FY 2010 increased by 9.58% to Rs.70.90 crore as compared to Rs.64.70 crore for Q3-FY2009. Profit after tax for Q 3 – FY 2010 was higher by 26.51 % at Rs.40.65 crore as compared to Rs.32.13 crore for Q3- FY2009.

Net Interest income for nine months ended-FY2010 grew up by 4.26% to Rs.190.66 crore as compared to Rs. 182.86 crore for the corresponding period of FY2009. Operating profit increased by 10.06 % to Rs.182.21 crore as compared to Rs. 165.55 crore for FY2009. Profit after tax was up by 22.84 % at Rs. 117.95 crore as compared to Rs.96.02 crore for FY2009.

Total Advances grew by 17.88 % to Rs.6032 crore as on 31st December 2009 from Rs.5117 crore as on December 31, 2008. Total Deposits increased by 21.71 % to Rs.8857 crore as on 31st December 2009 from Rs.7277 crore as on December 31, 2008.

The growth in Current and Savings Account deposits(CASA) was 33.87 % while Term Deposits grew by 18.97% over December 31, 2008. The Bank’s Balance Sheet size enlarged by 23.67 % to Rs.10360 crore from Rs.8377 crore as at December 31, 2008.

Other Performance Highlights and Ratios :( Nine Months Ended 31.12.2009)

 Return on Assets (annualized) of 1.60 % and Return on average equity of 21.24 %.

 Net Interest Margin at 2.98 %.

 Non Interest Income to Total Income ratio at 23.36 %.

 Capital Adequacy Ratio - Basel I 13.69 % (Tier I - 12.62)

 Basel II 14.66 % (Tier I - 13.51)

 Book value per share of Rs. 21.08.

 Basic EPS (non-annualised) of Rs.3.68/-.

Functional Performance of the bank

 The bank has 223 branches all over India.

 Customers can access over 45,000 ATM across the country and VISA Card holders can access more than 1 million ATMs across the globe.

 The bank has introduced SB Account with added features named as “CUB Young India” especially for students.

(This is a press release from City Union Bank)