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City Union Bank Ltd.

BSE: 532210 Sector: Financials
NSE: CUB ISIN Code: INE491A01021
BSE 00:00 | 11 Jun 169.00 2.40
(1.44%)
OPEN

167.00

HIGH

173.70

LOW

167.00

NSE 00:00 | 11 Jun 169.20 2.55
(1.53%)
OPEN

167.75

HIGH

173.90

LOW

167.05

OPEN 167.00
PREVIOUS CLOSE 166.60
VOLUME 354289
52-Week high 199.80
52-Week low 115.55
P/E 21.07
Mkt Cap.(Rs cr) 12,486
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 167.00
CLOSE 166.60
VOLUME 354289
52-Week high 199.80
52-Week low 115.55
P/E 21.07
Mkt Cap.(Rs cr) 12,486
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

City Union Bank Ltd. (CUB) - Company History

City Union Bank Ltd is one of the leading scheduled commercial banks in the private sector with major presence in urban semi-urban and rural centers in South India. The Bank operates in four segments namely Treasury Retail Banking Corporate Banking and Other banking operations. Their products include savings accounts current accounts fixed deposits cash certificates VIP deposit Flexifix deposits CUB Smart deposits and tax saver gold deposit account. The Bank's services include automated teller machine (ATM) services mail transfer demand draft phone transfer standing instructions and nomination facility. The main focus of the bank is lending to MSME Retail/Wholesale Trade with granular asset profile including providing short term and long term loans to agricultural sector. As of December 2020 the bank had a network of 700 branches and 1749 ATMs across the country. The bank has a strong presence in South India with 628 branches of which 485 are in Tamil Nadu alone.City Union Bank Ltd was incorporated as a limited company on 31 October 1904 with the name The Kumbakonam Bank Ltd. In 30 January 1930 the first Branch of the Bank was opened at Mannargudi in Tamil Nadu. Thereafter branches were opened at Nagapattinam Sannanallur Ayyampet Tirukattupalli Tiruvarur Manapparai Mayuram and Porayawithin oenty five years.In the year 1957 the Bank took over the assets and liabilities of the Common Wealth Bank Ltd and as a result five branches namely Aduthurai Kodavasal Valangaiman Jayankondacholopuram and Ariyalur were added to the Bank. In April 1965 two other local banks namely The City Forward Bank Ltd and The Union Bank Ltd were amalgamated with the Bank under a scheme of amalgamation with the resultant addition of six more branches namely Kumbakonam-Town Nannilam Koradacherry Tiruvidaimarudur Tirupanandal and Kuttalam. Consequently the name of the Bank was changed to The Kumbakonam City Union Bank Ltd.In November 1965 the Bank's first branch at Chennai was opened at Thiyagaraya Nagar. During the year 1968-1973 the Bank opened their branches at Eravancheri Sembanarkoil Tiruchirapalli Madurai Thanjavur Dindigul Keelapalur Tirumakkottai Kottur Tiruvarur Town and Coimbatore. In the next three years they opened the branches at Periyakulam Mandaveli (Cehnnai) Pattukkottai Triplicane (Chennai) Cuddalore Pudukkottai Chidambaram and Salem.During the period 1977-1979 the bank opened ten more branches including those at George Town (Madras) Mount Road (Madras) Tirunelveli and Karaikudi. In September 1980 the first branch outside the state of Tamilnadu was opened at Sultanpet in Bangalore. They also opened the branches at the twin cities Hyderabad and Secunderabad in Andhra Pradesh.In tune with the national image attached to the Bank the Bank's name was changed to City Union Bank Ltd with effecfrom December 1987. Taking into account the bank's financial strength managerial competence and consistent progress in all spheres of their activities Reserve Bank of India granted an Authorised Dealers License to deal in Foreign Exchange business with effect from October 1990.During the year 2000-01 the Bank set up an integrated Treasury Department at Chennai to ensure better management of funds. Also they set up Credit Risk Management Department and Loan Review Department to evaluate and mitigate the risks associated with the operations of the bank. During the year 2001-02 they further strengthened credit rating systems by introducing entry level rating pricing of loans based on rating of the borrowers. They expanded their network by opening branches at Tambaram Tiruvanmiyur(Chennai) Tumkur(Karnataka) and Rajamundhry(Andhra).During the year 2002-03 the Bank expanded their network by opening branches at Fort (Mumbai) Thrissur (Kerala) Kakinada and Tenali (Andhra) Palghat (Kerala). Also they entered into a MoU with Life Insurance Corporation of India and National Insurance Co Ltd for selling insurance products.During the year 2003-04 the Bank opened their new branches at Bhimavaram (Andhra Pradesh) Kovilpatti Oppanakara Street (Coimbatore) Ashok Nagar (Chennai) Ameerpet (Andhra Pradesh). They obtained licence from Insurance Regulatory Authority of India (IRDA) to act as Corporate Agents in the composite insurance business. Also they ntered into a franchise agreement for the Money Transfer Service Scheme of Western Union Financial Services Inc USA with their agents in India AFL Pvt Ltd.During the year 2005-06 the Bank opened their new branches at Udumalpet (Tamil Nadu) Indira Nagar (Bangalore) Cuddapah & Kurnool (Andhra Pradesh) Vashi (Mumbai) Tiruchengodu (Tamil Nadu) Vijayawada II & Guntur II (Andhra Pradesh). Also they installed 23 more ATMs at various branches. The Bank obtained licence to function as Depository Participant under National Securities Depository Ltd. During the year 2006-07 the Bank expanded their network by opening branches at Kannur (Kerala) Hosur (Tamil Nadu) Jayanagar-Bangalore Mysore (Karnataka) Chrompet Madipakkam Thoraipakkam and Trichy Cantonment (Tamil Nadu) Kottayam (Kerala) Malkajgiri Srikakulam and Machilipatnam(Andhra Pradesh) Kangayam Rasipuram Tirukoilur Dharapuram Sattur Krishnagiri and Paramakudi (Tamil Nadu). Also they installed 25 more ATMs in various branches during the year.During the year 2007-08 the Bank opened new branches at Belgaum Hubli Mangalore Davengere (Karnataka) Prodattur Warrangal (Andhra Pradesh) Gandhi Nagar Kumbakonam (Tamil Nadu) Tiruvannamalai (Tamil Nadu) Sivaganga (Tamil Nadu) Nandyal (Andhra Pradesh) Ramanathapuram (Tamil Nadu) Thane (Maharashtra) Ichalkaranji & Nagpur (Maharashtra) Anantapur (Andhra Pradesh) Dharmavaram (Andhra Pradesh) Rajkot (Gujarat) Nashik (Maharashtra) and Devakottai (Tamil Nadu). Also they installed 24 more ATMs in various branches during the year.During the year 2008-09 the Bank expanded their network by opening branches at KK Nagar (Chennai) Maraimalai Nagar (Tamil Nadu) Chengalpet (Tamil Nadu) Fair Lands (Salem) Ellampillai (Salem) Nadukkadai (Thanjavur) Pallipalayam (Namakkal) R S Puram (Coimbatore) Perambalur (Tamil Nadu) Kolkatta (West Bengal) Ramanagara (Karnataka) Anna Nagar Madurai (Tamil Nadu) Kelambakkam (Tamil Nadu) Nachiar Koil (Tamil Nadu) Rajaji Nagar (Bangalore - Karnataka) Kollam (Tamil Nadu) Madhurapuri (Tamil Nadu) Sirkazhi (Tamil Nadu) Banashankari (Karnataka) Hindupur (Andhra Pradesh) Thindal (Tamil Nadu) Kukatpally Hyderabad and Dilsukhnagar Hyderabad.In 2009 the bank came out with a rights issue of equity shares in the ratio of 1:4 to reward the existing shareholders. In 2012 the bank came out with a rights issue of equity shares in the ratio of 1:4 to reward the existing shareholders and employees under 'Employee Reservation Scheme'.In 2014 City Union Bank raised Rs 350 crore in equity capital through QIP route.The Board of Directors of the bank at its meeting held on 29 May 2017 recommended issue of bonus shares in the ratio of 1:10 i.e. one equity share of Re.1 each for every ten fully paid up equity shares held as on the record date subject to the approval of the shareholders of the bank.On 18 February 2018 City Union Bank informed the stock exchanges of international cyber attack on the bank's SWIFT payment system. The bank said that during its reconciliation process on 07 February 2018 it was found that three fraudulent transactions were initiated by the cyber criminals gaining access into the bank's system illegally. The bank immediately alerted the Correspondent banks to recall the funds. With its tight reconciliation systems the bank could catch the cyber attack in three attempts. The bank said its SWIFT payment system is back to normal after ensuring adequate enhanced security in place.During the FY2018 the Bank's total deposits increased by Rs 2737 crore from Rs 30116 crore to Rs 32853 crore registering a growth of 9% over previous year. The Gross Advances of the Bank increased by Rs 4127 crore to Rs 28239 crore from Rs 24112 crore posting a growth of 17%. The yield on advances declined to 11.46% from 12.10% during the financial year due to stiff competition among Banks. During May 2018 the Board of Directors of the Bank recommended the issue of 1 bonus equity share for every 10 equity shares of face value of Re 1/- each (1:10) already held by the shareholders on a record date subject to shareholders' approval by Postal Ballot and subsequently the bank has allotted 66535268 bonus equity shares.During the FY2018 the Bank had expanded its branch network by adding 50 more branches and 141 ATM's across the country totalling 600 branches and 1621 ATM's as on 31 March 2018. During the FY2019 the Bank's total deposits increased by Rs 5595 crore from Rs 32853 crore to Rs 38448 crore registering a growth of 17% over previous year. The Gross Advances of the Bank increased by Rs 4826 crore to Rs 33065 crore from Rs 28239 crore posting a growth of 17%. The yield on advances declined to 10.95% from 11.46% during the reporting year due to stiff competition among Banks.During the FY2019 the Bank has opened 50 additional branches to total 650 branches and has 1685 ATM's as on 31 March 2019.The bank bagged the IBA Banking technology award for Best use of Data and Analytics for Business Outcome. Also received the Aadhaar Excellence Award by UIDAI.During the FY2020 the Bank's total Deposits increased by Rs 2384 crore from Rs 38448 crore to Rs 40832 crore registering a growth of 6% over previous year. The Gross Advances of the Bank increased by Rs 1511 crore to Rs 34576 crore from Rs 33065 crore posting a growth of 5%. The yield on advances declined to 10.76% from 10.95% during the reporting year on account of the due transmission of the cut in the interest rates to the borrowers. During the FY2020 the Bank has opened 50 additional branches to total 700 branches and has 1793 ATMs as at st 31 March 2020.

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