Shares of City Union Bank (CUB) Ltd rose sharply in Monday's trade to scale their 52-week high level. The stock surged 9.29 per cent to hit a high of Rs 174.70. It was last seen trading 6.63 per cent higher at Rs 170.45. At this price, it has climbed 11.95 per cent on a year-to-date (YTD) basis.
Today's uptick in the share price came after the private lender posted a 16 per cent year-on-year (YoY) rise in its first quarter profit for the ongoing financial year 2024-25 (Q1 FY25). During the quarter under review, profit after tax (PAT) came at Rs 264 crore as against Rs 227 crore in the year-ago period.
Net interest income (NII -- difference between a bank's interest income from lending activities and the interest it pays to depositors -- rose 4.5 per cent to Rs 546 crore compared to Rs 522.6 crore in the corresponding quarter of FY24.
The gross non-performing asset (GNPA) ratio dropped to 3.88 per cent in Q1 FY25 from 4.91 per cent in the June 2023 quarter, while net NPA fell to 1.87 per cent from 2.51 per cent in the year-ago quarter.
CUB's return on assets stood at 1.51 per cent (YoY) as against 1.40 per cent.
The lender's total business grew by 8 per cent to Rs 1,01,405 crore in Q1 FY25 from Rs 94.060 crore in Q1 of last fiscal. Deposits grew by 6 per cent to Rs 54,857 crore, while advances increased by 10 per cent to Rs 46,548 crore. CASA grew by 2 per cent to Rs 16,195 crore.
As of June 30, 2024, the bank's capital adequacy, as per Reserve Bank of India (RBI) guidelines on Basel III norms, was 23.58 per cent and Tier-1 capital adequacy was 22.55 per cent, well above regulatory requirements, CUB said.
On the stock-specific front, CUB saw high trading volume on BSE today as around 6.73 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 1.57 lakh shares. Turnover on the counter came at Rs 11.51 crore, commanding a market capitalisation (m-cap) of Rs 12,721.04 crore.