City Union Bank tanks as bad loan provisions drive March-quarter loss

City Union Bank

19/06/2020 06:37

** Shares of bank  CTBK.NS  fall as much as 10.5% to 122.45
rupees, their biggest intraday pct loss since March 23
    ** CTBK posted March-quarter loss, hurt by surge in
provisions for bad loans and COVID-19-related provisions
 urn:newsml:reuters.com:*:nFWN2DV01Z
    ** Loss was co's first since at least 2004
    ** March-quarter provisions for bad loans were at 3.11 bln
rupees ($40.80 mln), while COVID-19 related provisions were 1.25
bln rupees
    ** Elevated non-perfroming assets formation may weigh on
margins in near term - Emkay Global, which cut its rating to
'hold' from 'buy'
    ** CTBK shares down 41.5% so far this year, as of last close
    ** About 4 mln shares traded, 3X30-day avg of 1.3 mln shares
    ** Thirteen of 19 analysts tracking stock rate it at 'buy or
strong buy'; 5 'hold'; 1 'sell or strong sell'    


($1 = 76.2280 Indian rupees)

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))