Asset quality, retail play key to City Union Bank's growth
[hfe_template id='11223']
[ad_1]
ET Intelligence Group: The shares of City Union Bank have fallen by 11% over the past month, underperforming the 1% drop in the BSE Bankex, following higher provisioning, margin pressure and declining deposits from the current account and savings account (CASA) route, which raised the cost of funds. However, the country's oldest private sector bank has shown a gradual uptick in loan book and improvement in asset quality, prompting analysts to raise the target price by over 9%. The Kumbakonam-based bank offers loans to the MSME (micro, small and medium enterprises), retail, wholesale and agriculture segments. The bank's advances grew by 15% to ₹50,409 crore while deposits rose by 11% to ₹58,271 crore year-on-year at the end of December 2024. MSME and agriculture loans accounted for more than 42% and 18% of the total loan book, respectively. The bank's activities are concentrated in Tamil Nadu, which has 65% or 533 of the total ...