City Union Bank Reports Mixed Financial Results Amidst Improving Asset Quality in March 2025

City Union Bank has reported its financial results for the quarter ending March 2025, revealing a mix of positive and challenging trends. The bank's score has undergone an adjustment, reflecting changes in its overall evaluation.
On the positive side, City Union Bank achieved its lowest Gross Non-Performing Assets (NPA) ratio at 3.09%, continuing a downward trend over the past five quarters. Additionally, the bank recorded its highest quarterly interest earned at Rs 1,532.72 crore, alongside a notable increase in Profit After Tax (PAT), which reached Rs 287.96 crore. The Net NPA also saw improvement, standing at 1.25%, indicating a reduction in stressed loans. Furthermore, the bank's Net Interest Income hit a five-quarter high of Rs 600.32 crore, and Earnings per Share (EPS) rose to Rs 3.89, showcasing enhanced profitability.

Conversely, the bank faced challenges with its Profit Before Tax less Other Income (PBT), which fell to Rs 111.74 crore, marking the lowest level in five quarters. This decline represents a significant shift compared to the previous four-quarter average. Additionally, the high proportion of Non-Operating Income, which accounted for 69.21% of PBT, raises concerns about the sustainability of the bank's income sources.

Overall, City Union Bank's recent financial results highlight a complex landscape of performance metrics, prompting a revision in its evaluation.

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