City Union Bank announced Q2FY23 results: Q2FY23/H1FY23: Net Interest Income (NII): The bank earned a NII of Rs 568 crore for Q1FY23 as against Rs 478 crore in Q1FY22 with a growth rate of 19%. For H1FY23, the NII stood at Rs 1,093 crore as against Rs 926 crore for the corresponding Q2FY22. Non-interest income: The non-interest income of the bank is at Rs 391 crore for H1FY23 as against Rs 396 crore for the corresponding Q2FY22. The absence of treasury income due to unfavourable yield movements is the key reason for muted growth of the non-interest income. Operating expenses: The operating expense is Rs 285 crore for Q2FY23 as against Rs 276 crore in Q2FY22. For H1FY23, the operating expenses were at Rs 580 crore as against Rs 536 for the corresponding Q2FY22. Operating profit: The operating profit for H1FY23 had grown by 15% and stood at Rs 904 crore as against Rs 786 crore for the same period as compared to the last year. Provisions: The bank made a provision of Rs 402 crore as of 30.09.2022. The total provision towards bad and doubtful debts is Rs 245 crore in H1FY23 as against Rs 351 crore in the corresponding quarter last of the year. Net profit: The bank’s profit after tax had grown by 52% in Q2FY23 and was at Rs 276 crore as against Rs 182 crore in Q2FY22. For H1FY23, PAT was Rs 502 crore as against Rs 355 crore in the corresponding Q2FY22. For the first time, the half-year profit of our bank had crossed Rs 500 crore. Deposits: Total deposits of the bank increased by 8% for H1FY23 to Rs 49,878 crore from Rs 46,316 crore for the same period last year. CASA increased by 16% from Rs 13,411 crore to Rs 15,609 cr (YoY). CASA portion stood at 31% to total deposits. The cost of Deposits decreased to 4.47% in H1FY23 from 4.80% in H1FY22. Advances: Total advances increased by 12% for H1FY23 to Rs 42,701 crore from Rs 38,012 crore in H1FY22. We are looking forward to a growth rate of 15%-18% for FY23 and growth will be more in the second half. The credit deposit ratio stood at 86%. The yield on Advances decreased to 9.22% in H1FY23 as against 9.45% in H1FY22. However, the yield on advance improved from 9.04% in Q1FY23 to 9.39% in Q2FY23. Asset quality: The gross NPA, as on September 30, 2022, was reduced to 4.36% from 5.58% in H1FY22 and net NPA was decreased to 2.69% from 3.48%. The Provision Coverage Ratio as on Q2FY23 was at 66%. Net Interest Margin: Net Interest Margin improved to 4.02% in H1FY23 vs 3.95% in H1FY22. For Q2FY23, the NIM was 4.09%, against 3.95% in the corresponding Q2FY22. Return on assets: Return on assets for H1FY23 is 1.59% as against 1.30% for the same period of last year. The ROA for Q2FY23 is significantly increased to 1.72% from 1.32% in Q2FY22. Return on equity: Return on equity was at 14.80% in H1FY23 as compared to 11.88% in H1FY22. ROE for Q2FY23 was 15.98% as against 11.96% in the corresponding Q2FY22. Cost-income ratio: The cost to income ratio reduced to 39.10% in H1FY 23 from 40.56% for the corresponding Q2FY22. CIR for Q2FY23 stood at 38.43% against 40.51% in Q2FY22. Capital adequacy: The bank’s capital adequacy as of September 30, 2022, as per Reserve Bank of India (RBI) guidelines on Basel III norms is 20.08% and Tier-1 capital adequacy was 19.02%, well above regulatory requirements. Result PDF