City Union Bank to expand reach

July 30th, 2011 - 12:04 am ICT by IANS  

Chennai, July 29 (IANS) The private City Union Bank (CUB) will be expanding its retail reach by setting up more branches and ATMs this fiscal, said the bank’s managing director here Friday.

“We will open 41 branches and install 107 ATMs this fiscal, thereby taking their total numbers to 300 and 287 respectively,” managing director and CEO N.Kamakodi told reporters here.

He said the bank owns all the ATMs and found income from ATM usage charges from customers of other banks steadily going up and the reason for expanding the network.

Speaking about the branch network, Kamakodi said 85 percent of the bank branches are located in southern India, and of these 70 percent in Tamil Nadu. The remaining branches are located in rest of India.

“As to the new branches, 50 percent will be opened in Tamil Nadu, 25 percent in (other parts of) south India, and the balance in other parts of India,” Kamakodi said.

He said the bank is logging at a steady pace and does not want to expand for the sake of having a big balance sheet.

“The `CUB’ can remain a cub, keeping shareholders happy and need not become a lion,” he added.

The bank closed first quarter with a net profit of Rs.58.51 crore and a total income of Rs.417.02 crore up from Rs.44.37 crore and Rs.299.34 crore respectively logged during corresponding period of the previous year.

Kamakodi said the net interest income for the first quarter went up by 30 percent to Rs.120.04 crore and the net interest margin stood at 3.59 percent.

The bank’s total business stood at Rs.23,215 crore (deposits Rs.13,624 crore, advances Rs.9,591 crore) up from Rs.17,370 crore (deposits Rs.10,610 crore, advances Rs.7,210 crore) posted during the first quarter of 2010-2011.

He said the bank’s gross non performing asset (NPA) was reduced to 1.22 percent from 1.30 percent and the net NPA to 0.51 percent from 0.54 percent.

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