India's City Union Bank rises as Q1 asset quality improves

City Union Bank

14/08/2020 06:37

** Indian bank's shares  CTBK.NS  up as much as 6.6% to
124.45 rupees, their biggest intraday pct gain since June 3
    ** CTBK's gross bad loans as a percentage of total loans, a
measure of asset quality, eased to 3.90% at Q1 end from 4.09% in
the prior qtr  urn:newsml:reuters.com:*:nFWN2FF0XD
    ** Co's Q1 net profit fell 17.2% to 1.54 bln rupees ($20.59
mln), however it beat several brokerages' estimates   
    ** Co's provisions and contingencies rose 35.3% to 1.57 bln
rupees, as it made a provision of 1 bln rupees to meet any
future contingency due to the COVID-19 pandemic
    ** "(CTBK) returned to profit in Q1 (vs prior qtr)..aided by
better NIMs, treasury gains and contained provisions" - Emkay
Global Financial Services Ltd
    ** 10 of the 19 analysts covering the stock have a "buy" or
higher rating, 8 have "hold" while 1 rates it at "strongsell";
median PT is 150 rupees - Refinitiv data
    ** Up to Thursday's close, stock has fallen 50.1% this year


($1 = 74.8100 Indian rupees)

 (Reporting by Anuron Kumar Mitra in Bengaluru)
 ((AnuronKumar.Mitra@thomsonreuters.com; +91 99863 58469;))