Investor Presentation – August 2010
Disclaimer
No representation or warranty, express or implied is made as to, and no reliance should be placed on the fairness, accuracy,
completeness or correctness of such information or opinions contained herein. The information contained in this presentation
is only current as of its date. Certain statements made in this presentation may not be based on historical information or
facts and may be “forward looking statements”, including those relating to the bank’s general business plan’s and strategy, its
future financial condition and growth prospects and future developments in the industry and regulatory environment. Actual
results may differ materially from these forward-looking statements due to a number of factors, including future changes or
developments in the bank’s business, its competitive environment and political, economic, legal and social conditions in India.
This communication is for general information purpose only, without regard to specific objectives, financial situations and
needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any
shares in the bank and neither any part of it shall form the basis of or be relied upon in connection with any contract or
commitment whatsoever. The bank may alter, modify or otherwise change in any manner the content of this presentation,
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Table of contents
1.
City Union Bank – Overview & Growth Story
2.
Ownership Pattern
12-14
3.
Management
15-18
4.
Financial Performance
19-32
5.
Strategy
36-37
6.
Recognitions
38-40
4-11
1. City Union Bank – Overview & Growth Story
4
Showcasing steady performance on an ongoing basis …
Long and consistent track record of profitability – Profit and dividend payout in all 100 + years of operations
Steady growth – Business growing at a CAGR of 27% and Net Profit at a CAGR of 30% in last five years
RoA and RoE at 1.5% and 20.5% respectively, which is considered healthy in the banking space
Best Corporate Practices; All Independent & Professional directors; Continuity in Management – only 6 CEOs so for
Rapid progress on the technology front with 100% business under CBS and State of the Art Technology platform
Significant improvement in asset quality over the years. Net NPA – 0.58% and Provision Coverage Ratio > 70%
Well capitalized; CAR – Basel II – 13.46% as on March 31, 2010
Future plans for expansion of branch network to 500 Branches in next 3 years
Rated as No.1 by Chartered Financial Analyst Magazine
CUB is well positioned to capitalize on the huge growth opportunities in the banking sector
5
Key milestones
2003
Obtained licenses to act as a
agent for procuring life
insurance & general
insurance business
1998
2009
Initial Public Offering (IPO);
Listing Bank’s shares on the
BSE, NSE & MSE
Rights issue for equity
shares @ 1 : 4 – to reward
the existing shareholders
1965
2007
Amalgamation of ‘The City
Forward Bank Limited’ and
‘The Union Bank Limited’ with
our Bank
Preferential allotment for equity shares
strengthening bank’s capital adequacy
ratio
1904
2002
Entered into agreement with TCS
for core banking solution “Quartz”
Incorporation of the Bank
1957
Take over of Common Wealth
Bank Limited
1945
Scheduled bank since 22.03.1945
6
Strong presence in the South
 A network of 222 branches of which 193 branches are located in South India and 139 in Tamil Nadu alone
State wise branches
No of
Branches
Statewise %
of Branches
% of our
Business
Tamil Nadu
139
63
73
Andhra Pradesh
29
13
9
Karnataka
15
7
6
Maharashtra
12
5
6
Kerala
10
5
2
Gujarat
6
3
1
Others
11
5
3
Total
222
100
100
State
7
Branch Expansion
 We have received License from Reserve Bank of India to open 62 more branches in various states
within a Year. Out of which 40 branches are in Tier I and Tier II centres and 22 More
branches planned to open under Tier III to VI centres.
State wise Branch Expansion planned
Tier I & II
centres
Tier III to VI
centres
Tamil Nadu
20
22
Andhra Pradesh
5
Karnataka
5
Maharashtra
4
Chattishgarh
1
New Delhi
2
Orissa
1
Punjab
1
Uttar Pradesh
1
State
Total
40
22
8
Providing a wide array of services
(1/2)
Services & facilities – Domestic banking
 Implementation of core banking at all the branches enabling customers to operate their accounts from any of the branches
 168 own inter connected ATMs nationwide as on August 15, 2010; Access to ATMs through Cashtree, NFS, VISA tie-ups
 VISA debit card access worldwide
 RTGS and NEFT available at all branches
 Internet and mobile banking facility
 SMS alert facility
 Utility bill payments – Telephone, electricity, credit card payments etc
 E-Tax payment facility
 E- payment of college term fees, mess fee & examination fees for university students
 Demat services in tie-up with NSDL
9
Providing a wide array of services
(2/2)
Services & facilities - International banking
 Forex services to the importers & exporters
 Trade credit facility to importers
 Handling overseas direct investments and foreign direct investments
 International banking operations / cross border banking through correspondent banking relationships with HSBC Bank,
Wachovia Bank, Standard Chartered Bank, Commerce Bank & others
 Forex dealing services through forward contracts, etc.
 Tie up with Doha Bank for arrangement of money transfer
 Drawing arrangement from Singapore with Bank of India
 Money 2 India Service – Tie up with ICICI Bank for fund transfer
 Arrangement with UAE Exchange and Majan exchange for money transfer
10
Offering the best of both worlds and more
Old private sector banks
New private sector banks
Flexibility to enter adjacent markets and
Perception of Poor asset quality
businesses
High proportion of retail deposits – low CASA
Diversified product portfolio
Relative size of asset base
High operating expenses
High cost of funds
High % of fee income
Strong growth
Operating efficiencies
Asset quality
Large branch network
High ROA
Strong customer base
Technology savvy
Focused approach towards SME’s
Plans to open branches in Tier II and Tier III cities
Experienced management team
11
2. Ownership Pattern
12
A well diversified investor base
Ownership profile as on 30th June 2010
Major shareholders as on 30th June 2010
Shareholders
Others
0.6%
Public
50.8%
FII's
22.8%
Domestic
Institution
7.8%
Corp. Bodies
18.0%
% holding
L & T Capital Holdings
4.79
LIC of India
4.68
Nederlandse Financierings
4.68
Ares Investments
3.90
Integrated Enterprises (I) Ltd.
3.90
Argonaut Ventures
3.66
Acacia Partners Lp.
3.04
Alpha Systems Pvt Ltd
2.59
GMO Emerging Illiquid Fund
1.75
Karur Vysya Bank
1.51
 Well diversified ownership
 Long term investors adding credibility and support to management
 Cash management services offered to LIC to improve CASA and customer base
 Bank Assurance partner to LIC and ranked No.1 in South India consecutively for three years
13
Rights Issue – FY 2009-10
During the year 2009-10, we have issued 80 mn equity shares with a face value of Re.1/- each (“Rights Equity
shares”) for cash at a price of Rs.6/- including a premium of Rs.5/- aggregating to Rs.48 crores to the existing
equity shareholders of our Bank on rights basis in the ratio of 1 Rights Equity share for every 4 Equity shares held.
The total proceeds through rights issue was around Rs.480 mn.
Capital increases from Rs.320 mn to Rs.400 mn.
14
3. Management
15
Transparent ‘Corporate Governance’ practices
All directors are Independent and Professional directors
Various sub-committees of Board have been formed to oversee the operations of the Bank
Code of conduct for directors and senior management has been put in place
Disclosure norms are strictly adhered to
16
A well experienced and strong Board
(1/2)
We have eminent personalities on our Board;
 1 Former Chairman of a PSU Bank
 3 Chartered Accountants
 2 Agriculturists
 1 Industrialist
 1 Advocate
 1 Chief Comm. Of Income Tax (Retd.)
 1 Retd. High Court Judge
 1 Banking professional
Profile of Board of Directors
Name
Profile
Mr. P.Vaidyanathan,
Chairman
He is a graduate in Commerce, a Fellow Member of the Institute of Chartered Accountants of India, Associate
Member of the Institute of Cost & Works Accountants of India and Associate Member of the Institute of Company
Secretaries of India. He has more than 35 years of experience in financial services industry
Mr. S. Balasubramanian, He holds a Master degree in Mathematics, CAIIB and PGDFM and has 38 years of experience in the banking
MD & CEO
industry. He had joined City Union Bank in 1971 as a probationary officer and has since then been associated with
the Bank in various capacities. In 2005 he was appointed as the Chairman & CEO of our Bank and thereafter, in
2009 the Reserve Bank of India has accorded approval for his appointment as the Managing Director and CEO of
our Bank with effect from January 31, 2009
Mr. V.Jayaraman,
Director
A Post Graduate in Statistics and an agriculturist he has been on the board since 2002. He joined the Indian
Revenue Service in July 1963 and held various posts in the Income Tax Department. He was on deputation to the
Ministry of Home Affairs, New Delhi. He was the Chairman of Banking Service Recruitment Board, Southern
Region as well as an Insurance Ombudsman, Southern Region
Mr. K.S. Raman,
Director
He is a post graduate in Statistics. He is an agriculturist and has been on the board during 1984 to 1992 and 1994
to 2002 and presently from 2004 onwards. He has worked with Statistics Department, Annamalai University,
Automobile Products of India Limited and in Larsen & Toubro Ltd
17
A well experienced and strong Board
(2/2)
Profile of Board of Directors
Name
Profile
Mr. S. Bernard,
Director
He is a graduate in Commerce and a Fellow Member of the Institute of Chartered Accountants of India. He is a
practicing Chartered Accountant of 31 years standing with expertise in the field of Accountancy and Taxation
Mr. N Kantha Kumar,
Director
He is a graduate in Commerce and Law. He has been in the Banking Industry for around 38 years. He has held
key positions such as Executive Director in Canara Bank and Chairman & Managing Director in Syndicate Bank
Mr. N.Sankaran,
Director
He is a Bachelor of Engineering (Civil) and is a Member of Institute of Engineers, India and has been on the
board since 2008. He is a retired General Manager from M/s. Voltas International, Chennai
Mr. M Naganathan,
Director
He is a graduate in Commerce and a Fellow Member of Institute of Chartered Accountants of India. He has
been on the board since 2008 and is a senior partner in M/s. Price Patt & Co., Chartered Accountants, Chennai.
Mr. R.G. Chandramogan, He is the Chairman & Managing Director of Hatsun Agro Product Limited. He has been in the dairy processing
Director
and Ice cream business for around 30 years. He visits the Indian Institute of Management, Ahmedabad as a
guest faculty.
Mr. T.K. Ramkumar,
Director
He is a graduate in Commerce and an advocate. He is a partner in M/s. Ram & Rajan & Associates, and
possesses knowledge and experience in banking law, company law, intellectual property rights, civil laws etc
Justice (Retd.)
S.R. Singaravelu,
Director
He is a former Judge of High Court of Madras and High Court of Orissa. He has vast experience of 36 years in
the Judiciary. He was in Judiciary Department and held various position.
Mr. C.R. Muralidharan,
Director
He retired as a whole time member of the Insurance Regulatory and Development Authority (IRDA) in
November 2009. Prior to this appointment he was a Chief General Manager in Reserve Bank of India. He has
extensive experience in regulation of Banks in Reserve Bank of India and Insurance Companies in IRDA.
18
4. Financial Performance
19
FY10 performance – A snapshot
FY 10 performance
Particulars
FY 2009-10
(in INR mn)
Deposits
FY 2008-09
( in INR mn)
Absolute
Growth
% Growth
102,845.9
82,066.2
20,779.7
25.3%
68,967.1
56,862.2
12,104.9
21.3%
171,812.9
138,928.4
32,884.5
23.6%
Gross NPA – Qtm
935.0
1020.8
-85.8
Net NPA – Qtm
396.7
611.1
-214.4
Gross NPA
1.36%
1.80%
Net NPA
0.58%
1.08%
Advances
Total Business
Key highlights
 Total Business of the Bank increased by 24% during the FY 2009-10.
 Deposits increased by 25% over previous year and Advances increased by 21%.
 Gross NPA brought down to 1.36%
 Net NPA reduced to 0.58%
20
Direction
FY10 performance – A snapshot
FY 10 performance
Particulars
Total Business
FY 2009-10
( in INR mn)
FY 2008-09
( in INR mn)
Absolute
Growth
% Growth
171,812.9
138,928.4
32,884.5
23.7%
Net Interest Income
2,781.4
2,425.7
355.7
14.7%
Other Income
1,435.0
1,236.8
198.2
16.0%
Operating Exp
1,658.5
1,395.3
263.2
18.9%
Operating Profit
2,557.9
2,267.2
290.7
12.8%
Net Profit
1,527.6
1,221.3
306.3
25.1%
CRAR – Basel II
13.46%
12.69%
-
-
Core CRAR – Tier I
12.41%
11.48%
-
-
Provision Coverage Ratio
70.27%
53.23%
-
-
Key highlights
 Total business of the Bank grew by ~24% in FY10
 Net interest income increased by 15% and PAT increased by 25%
 Net Profit increased by 25% from Rs.1221.3 Mn to Rs.1527.6 Mn
 Provision Coverage Ratio achieved well in advance.
 High CRAR offers scope for more leverage
 High Tier I Capital offers huge scope for increasing Tier II Bonds
21
Direction
Key business indicators
Key indicators
Particulars
Cost of Deposits
FY 2009-10
FY 2008-09
7.73%
7.98%
13.04%
13.46%
Return on Investments
7.84%
8.58%
Net Interest Margin
3.15%
3.49%
Cost to Income
39.33%
38.10%
Operating Exp - as a % of NII
59.63%
57.52%
1.52%
1.50%
20.55%
18.48%
65.10
56.51
Per Employee Profit (in INR mn)
0.58
0.50
EPS (in INR.) – FV INR1/- Share
4.03
3.23
Yield on Advances
Return on Assets (ROA)
Return on Net worth (RONW)
Per Employee Business ( in INR mn)
Key highlights
 Healthy RONW at 20.5% in FY10 up from 18.5% in FY09
 Cost of Deposits decreased from 7.98% in FY09 to 7.73% in FY10
 ROA increased marginally from 1.50% in FY09 to 1.52% in FY10
22
Direction
Q1 FY11 performance – A snapshot
Financial Performance – Q1 FY 11 Vs Q1 FY 10
Particulars
Q1 FY 11
( in INR mn)
Q1 FY 10
( in INR mn)
Absolute
Growth
% Growth
Deposits
106,096.5
83,767.2
22,329.3
26.6%
Advances
72,096.6
55,366.5
16,730.1
30.2%
178,193.1
139,133.7
39,059.4
28.1%
21,672.4
15,234.0
6,438.4
42.3%
Gross NPA
934.4
1087.2
-152.8
Net NPA
389.2
798.5
-409.3
Gross NPA (%)
1.30%
1.96%
Net NPA (%)
0.54%
1.45%
Return on Assets
1.52%
1.32%
Net Interest Margin
3.56%
2.79%
Total Business
CASA
Key highlights
 Total Business increased by 28.1% from Rs.139133.7 Mn to Rs.178193.1 Mn
 CASA position grew by 42.3% to Rs.21672.4 Mn from Rs.15234.0 Mn
 Net NPA brought down to 0.54% from 1.45% last year
 ROA increased to 1.52% from 1.32%
23
Direction
Q1 FY11 performance – A snapshot
Financial Performance – Q1 FY 11 Vs Q1 FY 10
Particulars
Q1 FY 11
( in INR mn)
Q1 FY 10
( in INR mn)
Absolute
Growth
% Growth
Net Interest Income
921.7
562.7
359.0
63.8%
Other Income
321.2
259.4
61.8
23.8%
Operating Exp
456.9
349.6
107.3
30.7%
Operating Profit
786.1
472.5
313.6
66.4%
Net Profit
443.7
315.4
128.3
40.7%
Key highlights
 Q1 FY 2011 Net interest income increased by 64% over previous Q1 FY 2010
 Operating Profit increased by 66% (YoY)
 Net Profit increased by 41% (YoY) from Rs.315.4 mn to Rs.443.7 mn
24
Direction
Strong deposit and advances growth
Steady increase in deposits
Steady increase in advances
Deposits (INR bn)
Advances (INR bn)
103
75
100
82
80
47
31
45
45
35
30
20
33
20
25
15
0
Mar-05
Mar-06
Mar-07
Steady increase in CASA
Mar-08
Mar-09
0
Mar-10
Mar-05
CASA (INR bn)
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
 Advances has been growing steady at a CAGR of
25
27% in the last 5 years; Credit Deposit ratio is
22
sound at 67%
20
15
10
56
60
64
60
40
68
11
7
13
16
 Deposits is retail oriented. Stable and growing at a
CAGR of 30%
8
5
 CASA grew by 44.94% in FY 2010 at a CAGR of
0
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
27%.
Mar-10
CUB has reported strong growth in deposits and advances in the last few years
25
Strong growth in income and profitability
Strong growth in other income
CEB & Charges Income over 5 years
Other Income (INR mn)
CEB & Charges (INR mn)
1,435
1,500
1,237
600
598
600
1,200
480
500
903
900
690
700
357
400
600
273
300
444
200
300
100
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-06
Steady increase in net interest income
Mar-07
1,600
1,528
2,781
1,500
2,426
1,221
1,200
1,998
1,900
Mar-10
PAT (INR mn)
2,800
2,200
Mar-09
Robust PAT growth
NII (INR mn)
2,500
Mar-08
1,017
900
1,675
600
1,398
718
564
300
1,300
1,000
0
Mar-06
Mar-07
Mar-08
Mar-09
Mar-06
Mar-10
26
Mar-07
Mar-08
Mar-09
Mar-10
Cost of deposits & yield on advances
Cost of deposits and yield on advances in last 10 years
CoD
YoA
16.0
15.40
15.06
14.0
13.75
13.46
12.82
12.58
12.0
11.72
11.36
10.60
10.0
11.00
10.85
13.04
11.32
9.86
8.96
8.74
8.0
7.98
7.89
6.96
6.08
6.0
7.73
7.23
5.75
5.95
4.0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Spread between cost of deposits and yield on advances of our bank maintained in the last 10 years
27
Investments – At a Glance
Investments Breakup and Category wise
Particulars (Rs in Mn)
SLR
Q1 FY 11
Q1 FY 10
% of Change
27,634.5
23,774.1
16.2%
6,510.6
4,334.5
50.2%
34,145.1
28,108.6
21.5%
7.1%
7.2%
-AFS
3,042.0
7,502.5
-40.6%
-HTM
31,003.5
20,606.1
50.46%
-HFT
99.6
0.0
34,145.1
28,108.6
M D – AFS
2.31
1.76
M D – HTM
5.88
6.39
M D – HFT
6.03
-
M D – Overall
5.48
4.98
Non SLR
Total Investments
Total Return on Investments
Investments Breakup:
Total Investments
21.9%
 In total Non-SLR securities of Rs.6510.6 Mns, investment in NABARD RIDF constitutes Rs.5782.6 Mns.
 Modified Duration for entire investment portfolio is 5.48 only.
28
Loan book – Major Industry wise exposure
Advances to Major Industries as on 30th June 2010
Amount
(in INR mn)
% to Total
Advances
Construction (Comm Real
Estate)
2,501
3%
Textiles
8,346
12%
Food Processing
1,368
2%
Iron & Steel
3,183
4%
Paper & Paper products
1,550
2%
Other Metal & Metal
Products
1,147
2%
Other Industries
2,255
3%
Loans Composition
29
Loan book – Major Sector wise Exposure & Regulatory Classification
Major Sector wise Advances as on 30th June, 2010
Major Sector
MSME
Amount
( in INR mn) % to Total Adv
23,918.4
33%
Agriculture
7,588.3
11%
Large Industries
3,950.8
5%
Retail Traders
6,930.7
10%
Wholesale Traders
8,138.6
11%
 SME and retail trade loans earning higher yields.
 Diversified credit portfolio reduces credit risk
 Lower ticket size backed by adequate collaterals
 Unsecured Advances around 3% only
Regulatory Classification of Advances as on 30th June, 2010
Classification
Amount
( in INR mn) % to Total Adv
Corporates
24,876.8
34%
Regulatory Retail
30,707.8
43%
1,902.9
3%
14,609.0
20%
NBFC
Other Advances
Gross Loans Total
72,096.5
30
Loan book products composition
Loan Products composition as June 30, 2010
Loan Products Combination
Amount
( in INR mn) % to Total Adv
Demand loans
17,046.4
23%
Term loans
25,701.8
36%
Overdraft / Cash credit
28,066.7
39%
1,281.7
2%
Bills Purchased / Discounted
Gross Loans Total
72,096.6
31
 Working capital loans yielding higher interest
constitute 60% of advances
 Re-pricing possible at short intervals thus
reducing interest rate risk
 ~80% of our loan book is on floating rate basis
which reduces interest rate risk
Asset quality is showing continuous improvement
NPA – AN ANALYSIS – LAST 5 YEARS
Gross NPA & Net NPA - %
Gross NPA & Net NPA - Quantum
150
8.00%
130.69
112.83
100
102.08
87.07
82.93
4.00%
67.79
50
6.00%
61.11
49.80
36.25
44.46
5.89%
93.50
39.67
4.32%
3.37%
2.00%
1.95%
2.58%
1.81%
0.98%
1.09%
0
0.00%
2005
2006
2007
2008
2009
2010
Gross NPA
130.69
112.83
87.07
82.93
102.08
93.50
Net NPA
67.79
49.80
36.25
44.46
61.11
39.67
Gross NPA
1.80%
1.08%
1.36%
0.58%
2005
2006
2007
2008
2009
2010
Gross NPA %
5.89%
4.32%
2.58%
1.81%
1.80%
1.36%
Net NPA %
3.37%
1.95%
1.09%
0.98%
1.08%
0.58%
Gross NPA %
Net NPA
Net NPA %
 Asset quality has shown continuous improvement over the years; Gross NPA has come down from 5.9% in March’ 05 to
1.4% in March’ 10
 Net NPA levels has come down from 3.4% in March’ 05 to 0.6% in March ’10
 NPA levels has come down despite the fact that we continue to focus on SME’s and retail trade loans.
 We have a well defined and robust credit appraisal policy and risk management system
32
Restructured Accounts
Details of Restructured Accounts
No .of Borrowers
Amount
( in INR mn)
Restructured in I Phase – FY 2008-09
213
3,187.9
Restructured in II Phase – FY 2009-10
51
1,655.6
264
4,843.5
Total
Out of the above,
Accounts closed till 31.03.2010
89.0
Accounts turned as NPA
181.3
Amounts repaid till 31.03.2010
885.6
Balance outstanding as at 31.03.2010
3,687.6
 The Restructured accounts are performing well and certain accounts got closed well before the due date.
 Around 18% of amount repaid in restructuring accounts.
 Around 3.7% of restructured accounts turned NPA.
 We have not restructured any account during the first quarter of 2010-11.
 Accounts turned as NPA during the first quarter of 2010-11 was NIL.
 Balance outstanding on Restructured Accounts as on 30th June 2010 – Rs.3474.6 Mns
33
Income and Expenses break up
Interest income break up
March’ 10
( in INR mn)
Particulars
March’ 09
( in INR mn)
Interest on Loans
7,558
6,553
15.3%
Interest on Investments
1,937
1,424
36.0%
71
67
5.97%
9,566
8,044
18.9%
Other Interest Income
Total expenses
Other income break up
Particulars
March’ 10
( in INR mn)
Expenses break up
March’ 09
( in INR mn)
% Change
CEB & Charges
690
598
15%
Treasury Income
458
480
- 4.6%
Suit Recoveries
260
141
84%
27
18
50%
1435
1237
16.0%
Others
Total Other Income
% Change
Particulars
Interest expended
March’ 09
( in INR mn) % Change
6,785
5,618
20.8%
Employee cost
801
650
23.2%
Other operating exp
857
746
14.9%
8,443
7,014
20.4%
Total expenses
34
March’ 10
( in INR mn)
Increasing employee efficiency
Growth in business per employee
Steady rise in profit per employee
Business/ Employee (INR mn)
Profit/Employee (INR mn)
70
60
56.5
40
0.5
49.9
50
0.4
34.0
0.6
0.6
65.1
0.4
0.4
Mar-06
Mar-07
0.5
0.5
Mar-08
Mar-09
0.3
35.0
30
0.2
20
Mar-06
Mar-07
Mar-08
Mar-09
0.1
Mar-10
Our employee efficiency has been going up continuously as reflected by the above parameters
35
Mar-10
5. Strategy
36
Our four pronged strategy going forward…
Deposits
Advances
 Achieve 30% growth in deposits & increase
low cost deposits from 20% at present to 25%
over 3 years
 Maintaining focus in retail/SME sectors at
around 65%
Continuing the high yielding cash credit
 Broad base retail depositors to ensure stability

 To improve depositor base from 0.8 mn to
1.25 mn; Focus on cross selling of products

Income
Expenses
component at around 60% of advances
 Continued focus on high yielding retail & SME
Achieve steady growth of 25%
 Improving staff productivity to lower man
credits
power cost
 Improving fee income by way of exchange &
commission on non funded business
 Tight vigil on miscellaneous expenditure
 Increase fee income from cross selling of
 Maintain cost income ratio at the present
insurance, mutual fund products, Online Share
level of 40% (lowest in the industry)
trading money transfers & other technology
based services
Our strategy is to focus on all these four aspects of banking business to capitalize on the growth opportunities
going ahead
37
6. Recognitions
38
Ranking by Magazine – “The Chartered Financial Analyst”
39
No.1 in Customer Satisfaction awarded by IBA
Indian Banks’ Association awarded City Union Bank as No.1
in Customer Satisfaction Study for IBA 2008 conducted by
GALLUP consulting.
Rank of Banks – Index – Bank within Clusters
Clusters 5 + 6
City Union Bank
96
Tamilnad Mercantile Bank
96
Karur Vysya Bank
94
Yes Bank
93
Ratnakar Bank
93
Lakshmi Vilas Bank
93
Indus Ind Bank
91
Nanital Bank
91
HSBC
88
Kotak Mahindra Bank
88
40
Thank You