City Union Bank Limited, a prominent private sector bank in India, has released its financial results for the fourth quarter and the entire fiscal year 2023-24, showing consistent growth in several key areas despite some challenges. The results were approved by the bank’s Board of Directors earlier today and include detailed metrics such as Net Interest Income, Non-Interest Income, and improvements in asset quality.

City Union Bank Financial Highlights and Performance Metrics

City Union Bank reported a Net Interest Income of Rs. 547 crore for Q4 FY24, marking a modest increase from Rs. 514 crore in the same quarter of the previous year. For the full fiscal year, the bank earned Rs. 2,123 crore, slightly down from Rs. 2,163 crore in FY23, reflecting a strategic realignment of financial operations.

Non-Interest Income saw a decline to Rs. 175 crore in Q4 FY24 from Rs. 195 crore in the corresponding quarter of the previous year, with the annual figures also showing a slight dip to Rs. 742 crore in FY24 from Rs. 810 crore in FY23.

Improving Asset Quality

One of the standout aspects of the financial year was the improvement in the bank’s asset quality. Gross Non-Performing Assets (NPA) decreased to 3.99% from 4.37% at the end of FY23, with Net NPA also reducing significantly to 1.97% from 2.36%. This marks a substantial progress, positioning the bank favorably in terms of asset health moving forward.

Operational and Business Growth of City Union Bank

The bank’s operational expenses rose to Rs. 370 crore in Q4 FY24 from Rs. 292 crore in the previous year, largely due to increased investments in digital lending infrastructure and additional manpower. Despite this, the Gross Profit was Rs. 352 crore for Q4 and Rs. 1,517 crore for the full year, although lower than the previous year’s Rs. 417 crore and Rs. 1,818 crore respectively.

In terms of business metrics, City Union Bank achieved a significant milestone, crossing Rs. 1,02,138 crore in total business for FY24, a growth of 6% year-over-year. This was supported by a 6% increase in both deposits and advances during the year.

Strategic Implementations and Digital Advances

The bank’s focus on enhancing its digital lending capabilities, coupled with the addition of senior management team members, is expected to drive future growth. The Cost to Income Ratio (CIR) stood at 47.06%, reflecting these strategic investments.

Capital Adequacy and Compliance

City Union Bank maintained robust capital adequacy ratios, with the overall figure standing at 23.84% as of March 31, 2024, well above the regulatory requirements, ensuring the bank’s financial stability and operational resilience.

The fiscal year 2023-24 has been pivotal for City Union Bank as it continues to navigate through a period of strategic transformation and digital innovation. The bank’s commitment to enhancing its service offerings and improving operational efficiency is evident from its financial performance and ongoing projects. The enhancements in digital infrastructure, particularly in lending, are timely as the banking sector moves increasingly towards digital and remote services.

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