Rs 683 crore profit for City Union Bank in FY 2018-2019
City Union Bank closed last fiscal with a net profit ...
City Union Bank closed last fiscal with a net profit of Rs 682.85 crore, up from Rs 592 crore registered during the previous year, a senior bank official said in May.
Aiding these results was also the conscious decision of the bank to stay away from corporate, consortium and infrastructure project lending which has helped the bank to avoid the non-performing assets (NPA or bad loans) quicksand, City Union Bank Chief Executive N. Kamakodi told reporters in Chennai. “We stayed away from lending to infrastructure, corporate sectors and large consortium lending. Most of the banking sector’s NPAs are due to lending to infrastructure sector,” he said.
“Even banks smaller than ours got into problems by lending to those sectors. We decided to grow the business with lending to retail, small and medium enterprises (SME) and trading sectors. One has to build the book brick-by-brick,” Mr Kamakodi said.