Growth Vectors Boost Performance

A niche regional player with more than 115 years into the banking business. what differentiates City Union Bank  (CUB) from its counterparts, is its ability to maintain a consistent profitability for over a century. When it comes to lending, the bank’s main focus is  MSME, agri sector and commercial trading, which constitute 33, 15 and 14 per cent respectively, as on June 30, 2019. Headquartered in Kumbakonam, Tamil Nadu, it had the lowest exposure to the NBFC crisis (0.8 per cent of loan book); virtually had no exposure to the IL&FS quandary and other troubled names, as pointed out an analyst  at ICICI Direct. “CUB performed much better than other mid-sized banks. We see a conservative approach by the management where they are avoiding aggressive loan growths. It has achieved business growth of over 20 per cent compounded annual growth rate (CAGR) in the...