City Union Bank Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The above financial results for the quarter and nine months ended 31st December 2018 have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 28th January 2019. The same have been subjected to limited review by the Statutory Central Auditors of the Bank. There are no qualifications in the Auditor's limited review report for the quarter and nine months ended 31st December 2018.
2. There has been no change in the accounting policies followed during the period ended 31st December 2018 as compared to those followed in the preceeding financial year ended 31st March 2018.
3. The above financial results have been arrived for the quarter and nine months ended 31st December 2018 after considering various provisions as per RBI guidelines, for Standard Assets, Non Performing Assets and Depreciation on Investments, Income Tax, Employee benefits and other required necessary provisions.
4. Other Income relates to income from non-fund based banking activities including commission, fees, gains from securities transactions, ATM sharing fees, income from PSL certificates (Net), recoveries from accounts written off and other miscellaneous income.
5. RBI Circular DBR. No. BP.BC.113/21.04.048/2017-18 dated June 15, 2018 grants banks an option to spread provisioning for mark to market (MTM) losses on investments held in AFS and HFT categories for the quarter ended June 30, 2018. The circular states that the provisioning for this quarter may be spread equally over up to four quarters, commencing with the quarter ended June 30, 2018. The Bank has not availed this option and had recognised the entire Mark to Market (MTM )loss on investments in the June quarter itself.
6. RBI Circular DBR No.BP.BC.100/21.04.048/2017-18 dated February 07, 2018 and DBR No.BP.BC.108/21.04.048/2017-18 dated June 6, 2018 permitted banks to continue the exposures to MSME borrowers to be classified as standard assets where the dues between September 1, 2017 and December 31, 2018 are paid not later than 180 days from their respective original due dates. During June 18 quarter, the Bank had reported 4 borrowal accounts totaling to Rs.19.06 crs had availed this scheme. During Q2 FY 19, out of the above referred 4 borrowal accounts, two borrowal accounts amounting to Rs.16.09 cr has been classified as NPA and remaining 2 accounts has been regularized and moved out of the said dispensation. The bank has not availed this dispensation during the current quarter.
7. In accordance with the RBI circular DBOD. No.BP.BC.1/21.06.201/2015-16 dated 1st July 2015, read together with RBI circular DBR.No.BP.BC.80/ and December 31, 2018 are paid not later than 180 days from their respective original due dates. During June 18 quarter, the Bank had reported 4 borrowal accounts totalling to Rs. 19.06 crs had availed this scheme. During Q2 FY 19, out of the above referred 4 borrowal accounts, two borrowal accounts amounting to Rs. 16.09 cr has been classified as NPA and remaining 2 accounts has been regularized and moved out of the said dispensation. The bank has not availed this dispensation during the current quarter. 21.06.201/2014-15 dated 31.03.2015, Banks are required to make Pillar III disclosures under Basel III capital regulations. Accordingly, Pillar 3 disclosures under Basel III capital regulations have been made available on the Bank's website (www.cityunionbank.com). These disclosures have not been subjected to review by the Statutory Central Auditors.
8. The figure for the quarter ended 31st December 2018 are the balancing figures between reviewed figures for the period nine months ended 31st December 2018 and published figures for the half year ended 30th September 2018.
9. RBI has advised banks to make higher provisions for accounts referred under the provisions of Insolvency and Bankruptcy Code, 2016 (IBC). The bank had exposure to two such accounts which were identified as NPA and were fully provided for in the earlier years.
10. Number of Investor complaints pending at the beginning of the quarter - Nil. Received during the quarter - 2 : Disposed of during the quarter - 2 : Pending complaints as on 31st December 2018 : Nil
11. Figures of the corresponding period's/year's have been reclassified/regrouped, wherever considered necessary.