Maintaining Its Position

City Union Bank’s (CUB) strategy of granular asset profile, focusing on short and long-term loans to the agricultural sector, has strengthened its balance sheet. The bank has clocked a 20 per cent Compounded Annual Growth Rate (CAGR) in the last decade and analysts remain positive on the bank’s prospects. This 115-year old niche player from Tamil Nadu operates 700 branches and 1788 ATMs across India. About 90 per cent of its services are present in south India. As of June 30, 2020, the bank’s loan book constituted MSMEs at 32 per cent, agriculture at 16 per cent and commercial trading at 13 per cent. CUB’s deposits and advances for the first quarter (Q1) of Financial Year (FY) 2021 saw a 5 per cent growth. Year-on-Year (Y-o-Y) growth was 7per cent. “We expect deposits and lending to grow at a CAGR of 7.7 per cent and 10.6 per cent respectively over FY21-22...