After announcing that the Reserve Bank of India had found discrepancies in new gross NPA totaling Rs 259 crore for the fiscal year that ended in March 2022, City Union Bank saw its share price fall 4.92% to Rs 179.60.
From 7 October 2022 to 18 November 2022, the RBI conducted the on-site Inspection for Supervisory Evaluation (ISE) for the fiscal quarter that ended on March 31, 2022. The final meeting was held on 19 December 2022.
According to its final report on risk assessment, a divergence in extra gross non-performing assets (NPA) totaling Rs 259 crore was documented for the relevant financial year.
According to the private sector bank, the discrepancy of Rs 259 crore is made up of 218 borrowers with outstanding balances of less than Rs 1 crore, totaling Rs 29 crore, and 13 borrower accounts with outstanding balances of more than Rs 1 crore, totaling Rs 230 crore.
Out of these 231 debtors, the bank has already designated five accounts as NPAs during the first half of FY23, and 57 further accounts are at risk.
All over India, City Union Bank provides a vast array of banking and financial services, including both local and international banking. A private bank, it has 727 locations spread out over 16 states and three union territories.
The bank’s net profit increased by 51.8% to Rs 276.45 crore in Q2 FY23 over Q2 FY22, while total revenue increased by 10.6% to Rs 1,354.65 crore.