City Union Bank Limited — PPTs, 02-05-2025: Investor Presentation

1. Financial Highlights:

City Union Bank reported deposits of ₹63,526 Cr (+14% YoY) and advances of ₹53,066 Cr (+14% YoY), pushing total business beyond ₹1.16 lakh Cr (+14%). Net interest margin held steady at 3.60%, with return on assets improving to 1.55%. Cost-to-income ratio remained efficient at 47.77%. Asset quality improved with gross NPA at 3.09% and net NPA at 1.25%, supported by a strong provision coverage ratio of 78%. Capital adequacy stayed robust at 23.75%, with Tier 1 at 22.70%.

2. Strategic Initiatives & Growth Drivers:

Growth is driven by the bank’s SME/MSME-focused lending model emphasizing granular, collateral-backed credit with low NPAs. Investments in digital infrastructure include AI-enabled chatbots, digital lending platforms, and expanded digital products. CASA and advances have shown steady growth, supporting balance sheet stability.

3. Business Developments:

The bank enhanced brand visibility through partnerships as the official credit card partner of Chennai Super Kings and banking partner for Sunrisers Hyderabad. Recognition via technology awards underscores innovation in customer experience and security. Branch network expanded to 875, with about 77% in Tamil Nadu, fueling retail growth.

4. Market Position & Competitive Advantage:

City Union Bank’s niche SME/MSME portfolio, prudent risk practices, and over 120 years of consistent profitability set it apart. Its strong capital base, AA-/A1+ credit ratings, and conservative lending backed by residential collateral provide a stable competitive edge.

5. Investor Implications:

The bank offers positive growth potential through steady margins, improving asset quality, and focused MSME lending. Digital initiatives and solid governance lower execution risks. It presents as a stable option within niche private-sector banking with consistent earnings and capital strength.