A recent press report said that City Union Bank has reported a 32 per cent growth in net profits at Rs. 59 crore for the first quarter of 2011-12 compared with Rs 44 crore for the same period last year.
Reports said that the bank has planned to hike its base rate by 75 basis points to 10.50 per cent which will make its home loan, personal loan, educational loan, business loan etc costlier to the borrowers.
Dr N. Kamakodi, Managing Director and CEO, City Union Bank, said that the bank would continue to maintain its NIM at 3.5 per cent during the current financial year although there is pressures on net interest margins.
The Total deposits of the bank reported a growth of 28 per cent to Rs 13,624 crore for the first quarter as against Rs 10,610 crore for the same period the previous year. Advances went up by 33 per cent to Rs 9,591 crore (Rs 7,210 crore). He added saying that the bank has planned for a business growth of 25 to 30 per cent for the current financial year.