City Union Bank Share Price

City Union Bank Ltd

City Union Bank Ltd is a leading scheduled commercial bank in the private sector, primarily focusing on urban, semi-urban, and rural centers across South India. The bank operates under four major business segments: Treasury, Retail Banking, Corporate Banking, and Other Banking Operations. It offers a broad spectrum of financial products and services, including savings accounts, current accounts, fixed deposits, cash certificates, VIP deposits, Flexifix deposits, and tax-saver gold deposit accounts. The bank also provides ATM services, mail transfer, demand drafts, phone transfers, standing instructions, and nomination facilities.

The bank’s primary focus is on lending to the Micro, Small, and Medium Enterprises (MSME) sector and retail/wholesale trade. Its lending portfolio also includes short-term and long-term loans to the agricultural sector. With its granular asset profile, City Union Bank has emerged as a trusted partner for small businesses and retail customers.

Branch Network

As of March 2023, City Union Bank had a robust network of 752 branches, of which 669 are located in Southern India, making up about 89% of its total branch network. Tamil Nadu alone hosts 519 branches, constituting approximately 69% of the bank’s branch presence. In addition to its branches, the bank has established 1,678 ATMs and continues to expand its digital and physical banking infrastructure to meet customer demands.

Early History and Growth

City Union Bank was incorporated on October 31, 1904, under the name "The Kumbakonam Bank Ltd." Its first branch was established in Mannargudi, Tamil Nadu, on January 30, 1930. Over the following 25 years, the bank expanded its footprint across several towns in Tamil Nadu, including Nagapattinam, Ayyampet, and Tirukattupalli. In 1957, City Union Bank took over the assets and liabilities of the Commonwealth Bank Ltd, adding branches in locations such as Aduthurai and Jayankondacholopuram.

In 1965, two more banks—City Forward Bank Ltd and Union Bank Ltd—were amalgamated into the institution, further boosting its branch network. This led to a change in its name to "The Kumbakonam City Union Bank Ltd." The bank's operations expanded beyond Tamil Nadu in September 1980, with its first branch outside the state opening in Bangalore.

National Image and Evolution

Recognizing its growing national presence, the bank renamed itself "City Union Bank Ltd" in December 1987. It further solidified its position by obtaining an Authorized Dealers License from the Reserve Bank of India in October 1990, enabling it to deal in foreign exchange. By the early 2000s, City Union Bank had integrated new technologies, such as an integrated treasury department and credit risk management systems, to enhance operational efficiency.

The bank also began offering insurance products in partnership with Life Insurance Corporation of India and National Insurance Co. Ltd., marking its entry into the financial products distribution space. In addition, it partnered with Western Union Financial Services to provide money transfer services, further diversifying its offerings.

Branch Expansion and Technology Integration

City Union Bank’s network growth has been steady and strategic. During the 2000s, it opened branches in major cities like Mumbai, Hyderabad, and Chennai, and extended its services to smaller towns and rural areas. The bank also strengthened its technological infrastructure by installing ATMs and implementing online and mobile banking services.

By the financial year 2018, the bank operated 600 branches and 1,621 ATMs across India. Over the subsequent years, it consistently expanded its branch and ATM network. For instance, by the financial year 2023, the bank had 752 branches and 1,678 ATMs. Its technology-driven initiatives, such as tie-ups with BSE Star Mutual Fund and Finwizard Technology Pvt. Ltd. (FISDOM), have enabled customers to access health insurance, mutual funds, and mobile-based investment solutions.

Key Milestones

The bank has achieved several financial and operational milestones. It raised Rs. 350 crore in equity capital through a Qualified Institutional Placement (QIP) in 2014. In 2017, it issued bonus shares in a 1:10 ratio, rewarding its shareholders. Another bonus issue followed in 2018, when the bank issued 1 equity share for every 10 shares held.

Despite facing challenges, such as a cyber-attack on its SWIFT payment system in February 2018, City Union Bank demonstrated resilience. The incident, which involved three fraudulent transactions, was quickly identified and resolved due to the bank’s robust reconciliation systems. The SWIFT system was restored with enhanced security measures.

Financial Performance

City Union Bank has consistently delivered solid financial performance. In FY2018, the bank’s total deposits grew by Rs. 2,737 crore to Rs. 32,853 crore, a 9% increase from the previous year. Its gross advances grew by 17% to Rs. 28,239 crore. However, intense competition led to a slight decline in the yield on advances.

In FY2019, deposits increased by 17% to Rs. 38,448 crore, while gross advances rose to Rs. 33,065 crore, representing another year of 17% growth. The bank continued its momentum in the following years, focusing on improving customer service and diversifying its product portfolio.

City Union Bank Share Price and Market Presence

City Union Bank has maintained a strong position in the stock market, reflecting investor confidence in its business model. The City Union Bank share price is influenced by the bank’s consistent financial performance, branch expansion, and strategic initiatives. Its focus on granular asset quality, prudent risk management, and technological upgrades has made it a preferred choice for investors.

Recent Developments

In the financial year 2023, City Union Bank opened 25 new branches and added 171 ATMs and BRMs while replacing 127 old ATMs with upgraded models. It continues to focus on its core areas of MSME lending, retail banking, and corporate banking, while leveraging technology to improve customer experience.

Additionally, the bank has made significant strides in digital transformation, offering seamless online and mobile banking services. Its partnerships for distributing health insurance and mutual fund products have further diversified its revenue streams.

Quick overview

City Union Bank’s journey from a small regional bank to one of the leading private sector banks in India is a testament to its resilience, innovation, and customer-centric approach. With a strong focus on expanding its branch network, leveraging technology, and maintaining robust financial performance, the bank is well-positioned for sustained growth. As it continues to evolve, the City Union Bank share price remains a key indicator of its market confidence and investor sentiment.