City Union Bank (CUB) on July 29 said it plans to raise about Rs 350 crore from share sale to institutional investors. The board has resolved to seek the approval of the shareholders of the bank to augment capital up to Rs 350 crore, inclusive of premium through a process of Qualified Institutional Placement (QIP), the private bank said in a filing to the BSE. The decision is subject to the applicable laws and regulations including the guidelines issued by RBI and market regulator SEBI by passing an enabling resolution at its ensuing shareholders meeting, it said.
The bank also posted 22 per cent rise in profit at Rs 90.28 crore for the first quarter ended June 30, 2013 as compared to Rs 73.88 crore in the same quarter of the previous fiscal. The total income rose to Rs 707.82 crore, from Rs 566.90 crore in the year-ago period. As of June 30, 2013, the bankÂ’s gross non-performing assets (NPAs) deteriorated to 1.25 per cent of gross advances as against 1.07 per cent in the same quarter of the previous fiscal.
Its net non-performing assets also rose to 0.63 per cent from 0.50 per cent. At the same time, provisions other than the tax of the lender during the quarter under the review rose to Rs 20.53 crore, from Rs 17.76 crore in the first quarter of the last fiscal.
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