The shares of private sector lender City Union Bank on Monday more than 15 percent after the lender reported a decline in earnings on sequential basis. CUB registered a net profit of Rs 217.83 crore for the October-December 2022 quarter, the Tamil Nadu-based bank said on Saturday.

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Net profits for the quarter ending December 31, 2022, were at Rs 196.11 crore in the corresponding period of last year.

For the nine-month period ending December 31, 2022, the net profit of the bank surged to Rs 719.43 crore from Rs 551.20 crore registered in the same period of the previous year.

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The total income during the quarter under review grew to Rs 1,429.97 crore from Rs 1,195.24 crore registered in the same period of the previous year.

The total income for the nine-month period ending December 31, 2022, went up to Rs 4,101.60 crore from Rs 3,610.98 crore registered a year ago, the bank said.

In an interaction with CNBC-TV18, CUB's MD and CEO N Kamakodi said that slippages have been between 2.5-2.8 percent in the last 3-4 quarters. “During pre-COVID period we used to have slippages between 2-2.5 percent, which increased to about three percent during COVID period.”

On NIM for nine months, Kamakodi said that it came at 3.97 percent, near the company's indicated 3.85-4 percent. “The net interest margin for 9 months is 3.97 percent and we had shared that our margin will be between 3.85-4 percent and our numbers are well within that range which we had communicated.”

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First Published:Feb 11, 2023 6:02 PM IST