Staff cost set to rise on salary revision: City Union Bk

City Union Bank has decalred its fourth quarter results. The company's Q4 net profit up at Rs 28.18 crore versus 25.38 crore. It's total income stood at Rs 198 crore and NII was down at Rs 154.8 crore versus Rs 170 crore.

S Balasubramanian, Chairman and CEO, City Union Bank said the bank has made some modifications in deposit rates and advance rates and expect to maintain margins. 

He told CNBC-TV18 that employee cost will be more this year as they have gone for a revision in salary.

Excerpts from CNBC-TV18’s exclusive interview with S Balasubramanian:

Q: We saw your net profit jump about 8% for Q4. How have the advances growth been in this quarter, considering that in the last quarter there was 41% growth?

A: Our advances had grown up from Rs 3,300 crore to Rs 4,537 crore. It is about 36% and our deposit has also grown by 36% from Rs 4,700 crore to Rs 6,452 crore.

Q: How are you expecting the current year to pan out in terms of advanced deposit growth as well as in terms of margins?

A: We have revisited our interest rates and have made some modifications in deposit rates and advance rates. We will be able to maintain that.

Q: Your employee cost have shown 22% decline, so has there been any write backs on that front?

A: Employee cost, this year, will be a little more because we have gone for revision in salary.

Q: What about Non-Performing Assets (NPAs), have you been able to recover any of your bad loans? Are you expecting any recovery in FY09?

A: Our gross NPA for the last year has come from 2.58% to 1.81% and net NPA from 1.09 to 0.98%.