City Union slips 9%
City Union Bank (CUB) is among the top five losers on the BSE since the morning; from its close of Rs.188.90, it opened lower at Rs.181 and further slipped by 9% to hit an intraday low at Rs.172.
The Bank informed the exchanges yesterday evening that RBI conducted on-site Inspection for Supervisory Evaluation (ISE) for FY22 from 7th Oct’22 to 18th Nov’22and the final meeting concluded on December 19, 2022.
As per its final report on Risk Assessment, it has inter-alia reported divergence in additional gross NPA for the said financial year amounting to Rs.259 crore. This consists of 13 borrower accounts (o/s balance > Rs.1 cr) for an amount of Rs.230 crs and 218 borrowers (o/s balance < Rs.1 cr) for an amount of Rs.29 crs.
The divergence in provisioning, as per the filing, was Rs.40 crore. The adjusted (notional) net profit for FY22 after taking into account the divergence in provisioning is Rs.719 crore against Rs.760 crore.