City Union Bank shares crash 13.5% after Q3 earnings dip on quarterly basis

According to analysts, CUB's results had several areas of weakness this quarter

City Union Bank shares crashed 13.5 per cent to Rs 138.4 on the BSE in the intra-day trade on Monday as the lender's profitability took a hit on a sequential basis in the December quarter. Private-sector lender City Union Bank, on Saturday, registered a net profit of Rs 217.83 crore for Q3FY23, down 21.2 per cent quater-on-quarter (QoQ) from Rs 276.5 crore in Q2FY23. 

Its net interest income (NII), too, fell 2 per cent sequentially to Rs 555.7 crore from Rs 567.9 crore. Net interest margin (NIM) also contracted 21 basis points to 3.9 per cent. 

"Improving trajectory in earnings derailed during