CITY UNION BANK LTD

Lends primarily to micro, small and medium enterprises (MSMEs) and retail customers, with gold loans forming a major share of its book. Retail banking (other than digital) is the largest revenue segment at 59% of segment revenue (Rs 2,918 cr YTD to Dec-2024), followed by corporate and wholesale banking at 21% (Rs 1,041 cr) and treasury at 18.7% (Rs 926 cr); treasury contributes the highest profit per rupee of revenue at Rs 474 cr EBIT. The bank runs 949 branches across 22 states with 26 offices and around 8,963 employees, and as of Q1 FY27 carried Rs 67,645 cr of advances (+25% YoY) and Rs 79,342 cr of deposits (+21% YoY) at a credit-deposit ratio of 85%. Average CASA stood at Rs 20,062 cr, and the loan book is anchored by MSME (55-60% target share) and gold loans (31-32% of book), with secured retail as an enhancer. The biggest input cost is the interest paid on deposits — cost of deposits was 5.56% in Q1 FY27 — followed by staff and branch operating costs, with cost-to-income at 45.42%. Asset quality improved sharply: gross NPA fell to 1.73% from 2.99% YoY and net NPA to 0.61%, while capital adequacy was strong at 21.73%.