City Union Bank's Q1 results show strong performance and 'Buy' call from MarketsMOJO.

City Union Bank, a midcap private bank, has recently announced its financial results for the quarter ended June 2024. The bank has received a 'Buy' call from MarketsMOJO, indicating positive prospects for the company.

According to the financials, City Union Bank has shown a consistent and positive performance in the last quarter. The bank's gross NPA (non-performing assets) has been the lowest at 3.88%, with a continuous decline in the last five quarters. This indicates that the proportion of stressed loans given by the bank is decreasing, which is a positive sign for its financial health.

Moreover, the bank's interest earned in the last quarter was the highest at Rs 1,388.64 crore, with a growth in each of the last five quarters. This shows a strong sales trend in the near term for the bank.

In terms of liquidity, City Union Bank has also shown improvement with its cash and cash equivalents reaching the highest at Rs 4,615.40 crore in the last six half-yearly periods. This indicates a positive short-term liquidity for the bank.

However, the bank's non-operating income in the last quarter was 57.44% of its profit before tax (PBT). This suggests that the company's income from non-business activities is high, which may not be a sustainable business model in the long run.

Overall, City Union Bank has shown a positive financial performance in the last quarter, with improvements in key areas such as NPA, interest earned, and liquidity. With a 'Buy' call from MarketsMOJO, the bank seems to be on a promising path for growth and success in the private banking industry.