How City Union Bank, Federal Bank have sustained investor interest

With gains of 7 - 10 per cent since September 24, both stocks have been an outlier among peers

The underpinning similarity between Federal Bank and City Union Bank (CUB) is their years of establishment as banks which span over several decades. Despite their regulatory classification as old private sector banks, despite the disagreement between bank chiefs over it, the other similarity lies in their ability to chart a strong trajectory and to harvest their deep rooted connection with the small and medium enterprise (SMEs). It is probably because of this that despite their regional peers such as Lakshmi Vilas Bank and Dhanlaxmi Bank running into serious trouble, stocks of Federal Bank and CUB have remained outliers with gains