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Bloomberg Quint

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City Union Bank Targets To Surpass Industry Growth Rate By 2-3% In FY26

  • City Union Bank's CEO N Kamakodi aims for the bank to outperform the industry growth by 2-3% in FY26.
  • Kamakodi expressed confidence in sustaining a growth rate of 13% to 15% over the next five years.
  • The bank follows a cautious growth strategy to ensure sustainability and profitability.
  • City Union Bank has historically maintained profitability and efficiency over its 120-year history.
  • The bank focuses on steady growth rather than rapid expansion to mitigate risks.
  • The loan portfolio of City Union Bank is diversified, with significant exposure to MSME and agricultural sectors.
  • The bank aims to reduce its cost-to-income ratio and stabilize it around 45% within five years.
  • Strategic investments in capacity expansion, including retail banking, are expected to contribute to profitability from 2026-27.
  • City Union Bank's shares were trading higher on the NSE amidst these growth projections.

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