Small yet focused approach makes City Union Bank an interesting bet

High concentration in the south Indian market, particularly the SME belt is working to its advantage

With every disruption in the banking sector, whether concerning asset quality or a change in preference, the industry has reinvented to either offer new products or diversify into new territories. The 115-year-old Kumbakonam (Tamil Nadu)-headquartered City Union Bank (CUB), however, is an exception.

Having started as an outfit catering for small businesses, CUB remains committed to the segment and draws roughly 72 per cent of its business from Tamil Nadu and almost 90 per cent from south India. Being a small and medium enterprise (SME)-centric bank, on a steady state basis, it has drawn 35 per cent of its business from