The dark horse: City Union Bank an outlier among regional peers

Has emerged as one of the best banking stocks in 2018

City Union Bank’s (CUB’s) balance sheet may be less than a tenth of top league private banks. Yet it has maintained its profitability (net interest margin or NIM) at over four per cent for almost a decade. 

The stock, with year-to-date gains of 15 per cent, has outperformed its peers such as South Indian Bank, Federal Bank and Karnataka Bank which have lost 15-50 per cent so far this year.

CUB’s niche positioning, strong market presence and asset-backed lending practice have steered it through a profitable trajectory. Being one of the oldest south-based banks, it draws nearly 90 per cent of its