Shares of City Union Bank (CUB) Ltd saw a sharp uptick in Tuesday's trade after the private lender declared its second-quarter (Q2 FY25) earnings. The stock surged 12.54 per cent to hit a day high of Rs 169.65.
The Tamil Nadu-headquartered bank reported a 24 per cent rise in its non-interest income, at Rs 226 crore, in Q2 FY25. CUB's total income and interest income grew by 12 per cent and 10 per cent, respectively. Operating profit climbed 11 per cent and profit after tax (PAT) witnessed a 2 per cent rise.
The lender's gross non-performing asset (NPA) slipped to 3.54 per cent in September 2024 quarter as against 4.66 per cent in the year-ago period. Net NPA came at 1.62 per cent in Q2 FY25 as compared to 2.34 per cent in the corresponding period last year.
Total Deposits increased by 9 per cent and increased to Rs 57,369 crore in Q2 FY25 from Rs 52,714 crore in September 2023. CASA portion stood at 29 per cent to total deposits.
CUB said its total advances expanded by 12 per cent for Q2 FY25 to Rs 48,722 crore from Rs 43,688 crore in Q2 FY24. Average Credit Deposit ratio stood at 84 per cent.
On the stock-specific front, the counter saw high trading volume as around 12.29 lakh shares were last seen changing hands on BSE. The figure was way more than the two-week average volume of 49,000 shares. Turnover on the counter came at Rs 20.31 crore, commanding a market capitalisation (m-cap) of Rs 12,280.34 crore.
"Investors should not create fresh positions at current levels as the risk-reward ratio is not looking favourable," Kkunal V Parar, Vice-President of Technical Research and Algo at Choice Broking, told Business Today TV.
At present, the private sector lender has 812 branches across 16 states and three Union territories (UTs).