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City Union Bank has achieved satisfactory operating results in the first half of the current financial year. The total deposits of the bank as on September 30, 2003, increased to Rs 2,614 crore thereby recording an annual growth of 21 per cent, compared to the previous year. Gross advances of the bank stood at Rs 1,443 crore as on September 30 with the growth rate of 26 per cent, compared to last year.

Operating profit for the 6 months period ended September 30, 2003, has increased by 49 per cent reaching a level of Rs 56.91 crore, against Rs 38.12 crore made during the corresponding period of the previous year. The net profit for the period under reference was Rs 20.27 crore, compared to Rs 14.53 crore, earned for the period ended September 30, 2002, thus resulting in a growth rate of about 40 per cent.

The overall efficiency of the bank has led to a reasonable increase in return on assets (ROA) which has reached the level 1.37 per cent and this is considered encouraging by the industry's standards.

Presently, net NPAs remain at 7.26 per cent and the bank has already initiated suitable measures to bring down the level below 5 per cent during the next financial year.

Increasing profit levels have led to enhanced EPS which presently stands at Rs 8.44 (for the six months period), compared to Rs 6.06 for the corresponding period of the last year.

The bank has forged an arrangement with Tata Consultancy Services (TCS) for implementing core banking solutions. The application of core banking solutions, named 'QUARTZ', developed by TCS will be introduced in Indian conditions for the first time at this bank. The bank hopefully expects to network 25 prominent branches before the closure of the current financial year. The bank has already opened five "on-site" ATMs at some of its major branches and has further plans to open more ATMs in the near future.

In its quest to augment fee-based income, the bank has entered into a memorandum of understanding with Life Insurance Corporation of India and National Insurance Company limited for undertaking composite insurance business. The bank has been granted a valid licence by IRDA for acting as corporate agents. In addition, the bank has also plans to co-brand value-added banking services with insurance cover.

The hour of glory is round the corner with the bank set to celebrate its centenary in 2004. A grand inaugural function was held at Kumbakonam, the headquarters of the bank on December 2.

The memorable function was graced by the presence of R Venkataraman, former president, Justice A R Lakshmanan and Ranjana Kumar, chairperson, NABARD. The bank has also drawn up detailed plans to celebrate the memorable year through a series of functions to be organised at various important centres.

RR