City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (September 2024)
51 slides from City Union Bank's investor presentation, September 2024
Slide 1: Investor Presentation September 2024
INVESTOR PRESENTATION SEPTEMBER 2024
Slide 2: Disclaimer
TRUST AND EXCELLENCE 1904 - 2024 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 on
Slide 3: Table of Contents
Table of Contents TRUST AND EXCELLENCE 1904 - 2024 Overview ........................................................................................................................ 04 Performance Highlights – September 2024 ......................................................................... 10
Slide 4: Overview
TRUST AND EXCELLENCE 1904 - 2024 OVERVIEW 04
Slide 5: Facts & Figures
Overview TRUST AND EXCELLENCE 1904 - 2024 City Union Bank Ltd., the oldest Private Sector Bank in India, was founded on October 31, 1904, and is headquartered in Kumbakonam, Tamil Nadu, India. The main focus of the Bank – lending to MSME, Retail / Wholesale Trade with a granular asset profile includ
Slide 6: Key Milestones
KEY MILESTONES 1998 TRUST AND EXCELLENCE 1904 - 2024 Initial Public 1957 Offering (IPO); Took over Listing bank’s 1904 Common shares on the Incorporation Wealth BSE, NSE & MSE 06 of Bank Limited the Bank 02 04 03 1965 05 2002 01 1945 Scheduled bank Amalgamation Entered into since of ‘The City Forwar
Slide 7: City Union Bank: A Specialized Banking Model Aligned to Target Segment
CITY UNION BANK A SPECIALIZED BANKING MODEL ALIGNED TO TARGET SEGMENT – SME / MSME TRUST AND EXCELLENCE 1904 - 2024 Prudent Risk Invested in Robust Purely retail Liability SME / MSME focus Management Infrastructure Franchise SME/MSME specialized SME exposures’ result in Comprehensive employee
Slide 8: Competitive Advantages
COMPETITIVE ADVANTAGES TRUST AND EXCELLENCE 1904 - 2024 NETWORK STRONG TRACK RECORD • Continuous profitability and dividend • Pan India presence with 812 branches payout in all 120 years of operations • Strong presence in South India (700 • Business growth of about 15% CAGR in branches) of which 528
Slide 9: Credit Rating
TRUST AND EXCELLENCE CREDIT RATING 1904 - 2024 ICRA has assigned • “AA-” for Long Term - issuers with this rating are considered to have “High Degree of Safety” regarding timely servicing of financial obligations. • “A1+” for Certificate of Deposits (CD) - issuers with this rating are considered to
Slide 10: Performance Highlights – September 2024
TRUST AND EXCELLENCE 1904 - 2024 PERFORMANCE HIGHLIGHTS – SEPTEMBER 2024 10
Slide 11: Q2 FY Performance – A Snapshot
Q2 FY 25 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 • Deposits increased by 9% from Rs. 527 Bn to Rs. 574 Bn Y-o-Y • Advances registered a growth of 12% from Rs.437 Bn to Rs.487 Bn Y-o-Y • The total business grew by 10% from Rs.964 Bn to Rs. 1061 Bn Y-o-Y • Profitability and efficienc
Slide 12: Q2 FY25 vs Q2 FY24 Performance – A Snapshot
Q2 FY 25 VS Q2 FY 24 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) 573,691 487,220 1,060,911 168,934 9% 12% 10% 8% 527,140 436,881 964,021 155,903 Deposits Advances Total Business CASA 4,282 2,852 5,825 47.06 10% 2% 8% % % 3,886 2,806 5,384 46.34 % Gross Net Profit Net Intere
Slide 13: H1 FY25 vs H1 FY24 Performance – A Snapshot
H1 FY 25 VS H1 FY 24 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) 573,691 487,220 1,060,911 168,934 9% 12% 10% 8% 527,140 436,881 964,021 155,903 Deposits Advances Total Business CASA 8,017 5,497 11,277 48.15 8% 6% % % 8,009 5,079 10,610 44.17 % Gross Net Profit Net Interest
Slide 14: FY24 vs FY23 Performance – A Snapshot
FY 24 VS FY 23 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) 556,566 464,815 1,021,381 170,502 6% 6% 6% 9% 523,979 439,708 963,687 156,569 Deposits Advances Total Business CASA 15,167 10,157 21,235 47.06 8% - ve % % 18,180 9,375 21,628 38.85 % Gross Net Profit Net Interest Co
Slide 15: Financial Performance & Business Profile
TRUST AND EXCELLENCE 1904 - 2024 FINANCIAL PERFORMANCE & BUSINESS PROFILE 15
Slide 16: Q2 FY25 vs Q2 FY24 Performance – Financial Performance
TRUST AND EXCELLENCE 1904 - 2024 Q2 FY 25 VS Q2 FY 24 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS Q2 FY 2025 Q2 FY 2024 INC / (DEC) Growth Growth % Q1 FY 2025 Deposits 573,691 527,140 46,511 9% 548,569 Advances 487,220 436,881 50,339 12% 465,479 Total Business 1,060,911 96
Slide 17: Q2 FY25 vs Q2 FY24 Performance – Income Statement
TRUST AND EXCELLENCE 1904 - 2024 Q2 FY 25 VS Q2 FY 24 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS Q2 FY 25 Q2 FY 24 INC / (DEC) Growth % Net Interest Income 5,825 5,384 441 8% Other Income 2,263 1,821 442 24% Operating Expenses 3,806 3,339 467 14% Gross Profit 4,282 3,866
Slide 18: H1 FY25 vs H1 FY24 Performance
TRUST AND EXCELLENCE 1904 - 2024 H1 FY 25 VS H1 FY 24 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS H1 FY 25 H1 FY 24 INC / (DEC) Growth % Net Interest Income 11,277 10,610 667 6% Other Income 4,184 3,735 449 12% Operating Expenses 7,444 6,336 1,108 17% Gross Profit 8,017 8,
Slide 19: FY24 vs FY23 Performance – Financial Performance
TRUST AND EXCELLENCE 1904 - 2024 FY 24 VS FY 23 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS FY 2024 FY 2023 INC / (DEC) Growth Growth % Deposits 556,566 523,979 32,587 6% Advances 464,815 439,708 25,107 6% Total Business 1,021,381 963,687 57,694 6% Demand Deposits 54,888 4
Slide 20: FY24 vs FY23 Performance – Income Statement
TRUST AND EXCELLENCE 1904 - 2024 FY 24 VS FY 23 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS FY 24 FY 23 INC / (DEC) Growth % Net Interest Income 21,235 21,628 -393 -2% Other Income 7,416 8,104 -688 -8% Operating Expenses 13,484 11,552 1,932 17% Gross Profit 15,167 18,180 -
Slide 21: Provisions & Contingencies – Breakup
TRUST AND EXCELLENCE 1904 - 2024 PROVISIONS & CONTINGENCIES – BREAKUP (in INR Mn) PARTICULARS Q2 FY 25 Q2 FY 24 H1 FY 25 H1 FY 24 FY 2024 Provision for: - Tax 730 500 1,430 850 2,150 - Bad Debts 700 280 1,020 2,680 3,270 - Contingencies - 300 70 -350 -170 - Standard Assets - -30 -210 -170 - Restruct
Slide 22: Q2 FY25 vs Q2 FY24 – Income and Expenses Breakup
TRUST AND EXCELLENCE 1904 - 2024 Q2 FY 25 VS Q2 FY 24 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS Q2 FY 25 Q2 FY 24 Growth % PARTICULARS Q2 FY 25 Q2 FY 24 Growth % Interest on Loans 11,435 10,280 11% Int Exp on Deposits 7,950 7,179 11% Inte
Slide 23: H1 FY25 vs H1 FY24 – Income and Expenses Breakup
TRUST AND EXCELLENCE 1904 - 2024 H1 FY 25 VS H1 FY 24 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS H1 FY 25 H1 FY 24 Growth % PARTICULARS H1 FY 25 H1 FY 24 Growth % Interest on Loans 22,299 20,369 9% Int Exp on Deposits 15,621 14,020 11% Int
Slide 24: FY24 vs FY23 – Income and Expenses Breakup
TRUST AND EXCELLENCE 1904 - 2024 FY 24 VS FY 23 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS FY 24 FY 23 Growth % PARTICULARS FY 24 FY 23 Growth % Interest on Loans 41,534 38,009 9% Int Exp on Deposits 28,990 22,804 27% Interest on Investmen
Slide 25: Deposits and Advances Growth – Over the Years
DEPOSITS AND ADVANCES GROWTH – OVER THE YEARS TRUST AND EXCELLENCE 1904 - 2024 DEPOSITS ADVANCES (in INR Mn) 5,56,566 5,73,691 4,64,815 4,87,220 5,23,979 4,39,708 4,76,897 4,11,560 4,45,370 3,70,206 31-03-2021 31-03-2022 31-03-2023 31-03-2024 30-09-2024 31-03-2021 31-03-2022 31-03-2023 31-03-2024 30
Slide 26: Income Growth Over the Years
INCOME GROWTH OVER THE YEARS… TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) NET INTEREST INCOME OTHER INCOME 8,104 21,628 21,235 7,591 7,417 19,165 6,887 18,297 (6 M) (6 M) 11,277 4,185 31-03-2021 31-03-2022 31-03-2023 31-03-2024 30-09-2024 31-03-2021 31-03-2022 31-03-2023 31-03-2024 30-09-2024 CEB N
Slide 27: Key Business Indicators
TRUST AND EXCELLENCE 1904 - 2024 KEY BUSINESS INDICATORS PARTICULARS Q2 FY 25 Q2 FY 24 H1 FY 25 H1 FY 24 FY 24 Cost of Deposits 5.75% 5.51% 5.73% 5.44% 5.59% Yield on Advances 9.81% 9.77% 9.70% 9.65% 9.72% Yield on Investments 6.54% 6.28% 6.51% 6.19% 6.27% Net Interest Margin 3.67% 3.74% 3.60% 3.70%
Slide 28: Key Business Ratios – Yearly Trends
KEY BUSINESS RATIOS – YEARLY TRENDS TRUST AND EXCELLENCE 1904 - 2024 NET INTEREST MARGIN RETURN ON ASSETS 5.00% 1.70% 1.55% 1.60% 1.52% 4.50% 1.46% 1.50% 1.40% 1.35% 4.00% 3.98% 4.00% 3.89% 1.30% 3.65% 3.60% 1.20% 1.15% 3.50% 1.10% 1.00% 3.00% 0.90% 31-MAR-21 31-MAR-22 31-MAR-23 31-MAR-24 30-SEP-24
Slide 29: Cost of Deposits & Yield on Advances
COST OF DEPOSITS & YIELD ON ADVANCES TRUST AND EXCELLENCE 1904 - 2024 (in %) 14 13.18 12.83 12.10 12 11.46 10.95 10.76 9.91 9.72 9.70 10 9.36 9.23 8.15 8 7.62 6.82 6.29 6.17 6.20 5.59 5.73 6 5.36 4.68 4.66 4 2 0 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Sep 24 Spread betw
Slide 30: Loan Book – Products Composition
TRUST AND EXCELLENCE 1904 - 2024 LOAN BOOK – PRODUCTS COMPOSITION % to Total Advances Trading & MSME loans constitute about 41% 1% Bills Purchased & Diversified credit portfolio reduces credit risk and Lower Bills Discounted ticket size backed by adequate collaterals Term Loan 35% Cash Credit & Dema
Slide 31: Loan Book Sectoral Deployment – Position as on 30.09.2024
LOAN BOOK SECTORAL DEPLOYMENT – POSITION AS ON 30.09.2024 Large Industries 6,278 TRUST AND EXCELLENCE 1904 - 2024 LAD Retail Traders (in INR Mn) 7,998 6,572 Wholesale Traders Infrastructure 10,807 2,990 Personal Loan 1% 13,174 1% 2% 2% NBFC 3% 17,193 4% Housing 22,670 5 % 38% C R E 6% 29,209 SECTORA
Slide 32: Loan Book – Advances to Major Industries
Corporate Governance Loan Book – Advances to Major Industries TRUST AND EXCELLENCE 1904 - 2024 (in I N R M n ) Advances to Major Industries 30th September 2024 TEXTILE a) Cotton 13,051 (3%) b) Other Textiles 29,220 (6%) METALS a) Iron & Steel 12,491 (3%) Amount % to Total Industry Name b) Other Meta
Slide 33: Gold Loan Book – H1 FY 2025
GOLD LOAN BOOK – H1 FY 2025 TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) GOLD LOAN PORTFOLIO Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Gold Loan – Agriculture 64,774 60,639 56,847 61,130 64,418 69,144 Gold Loan – Non-Agriculture 43,031 48,159 49,063 49,317 50,214 54,646 Total Gold Loans 107,805 108,
Slide 34: Asset Quality
TRUST AND EXCELLENCE 1904 - 2024 ASSET QUALITY (in INR Mn) GROSS NPA QTM & GROSS NPA % NET NPA QTM & NET NPA % 18,932 19,332 19,202 18,544 11,911 17,255 10,752 10,176 5.11% 8,987 4.70% 7,750 4.37% 2.97% 2.95% 3.99% 2.36% 3.54% 1.97% 1.62% 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 30-Sep-24 31-Mar-21 3
Slide 35: Asset Quality Position – Movement Over the Years
ASSET QUALITY POSITION – MOVEMENT OVER THE YEARS TRUST AND EXCELLENCE 1904 - 2024 (In INR MN) FY MAR-20 FY MAR-21 FY MAR-22 FY MAR-23 FY MAR-24 30-SEP-24 NPA Opening balance 9,771 14,134 18,932 19,332 19,902 18,544 Additions A 11,104 11,131 12,757 13,290 10,135 3,543 Recovery made 1,644 1,950 4,424
Slide 36: Restructured Accounts
RESTRUCTURED ACCOUNTS TRUST AND EXCELLENCE 1904 - 2024 Quarter wise balance outstanding in respect of Restructured Standard borrowers (In INR Mn) Sep-21 Mar-22 Mar-23 Mar-24 Sep-24 Type of Restructuring No. of No. of No. of No. of No. of Amt Amt Amt Amt Amt Borrowers Borrowers Borrowers Borrowers Bo
Slide 37: Investments – At a Glance
TRUST AND EXCELLENCE 1904 - 2024 INVESTMENTS – AT A GLANCE Investments Breakup and Category wise (in INR Mn) Particulars SEP-2024 SLR Securities 162,977 Non-SLR Securities 1,600 Total Investments 164,577 Yield on Investments 6.51% Investments Breakup: - A FS 24,256 (15%) - H TM 137,696 (83%) - FVTPL
Slide 38: Technology Adoption
TRUST AND EXCELLENCE 1904 - 2024 TECHNOLOGY ADOPTION 38 35
Slide 39: Digital Offerings
Digital Offerings Product Offerings 01 02 03 04 05 Loan Against ONDC for MSME Credit Line Credit UPI Circle New Initiatives Securities & Retail on UPI Card on UPI Pay to Whatsapp Products UPI ATM Contact Scan & Pay/ QR UPI Lite Banking Technology/ Digital Data API/Robotic AI/ Conversational Voice Pr
Slide 40: CUB Product Launches at Global Fintech Fest
CUB Product Launches - Delegate Payments at Loan Against Securities Global Fintech Fest Credit Line on UPI ONDC for MSME’s Auto Top-up Instant NCMC Transport Card Issuance Kiosk ONDC for Retail Customers Credit Card on UPI 40 37
Slide 41: Digital Banking Products
Digital Banking Products Retail Banking CorporateBanking 01 Online Savings Account Opening 01 Online Current Account Opening 02 UPI Scan and Pay 02 Positive Pay 03 24*7 Fund Transfers 03 Digital Signature [Hard / Soft] 04 Cardless Withdrawal 04 Letter of Credit through Net Banking 05 Deposit Online
Slide 42: Strategic Partnerships
Strategic Partnerships Account Digital Opening Lending Payments API BANKING Correspondent Customer Banking Digital Onboarding Insurance 0 42 39 7
Slide 43: Awards Received During 2024-25
Awards Received During 2024-25 CIOAXIS BFSI CXO Awards & Confex 2024 BFSI Technology Awards 2024 StrategINK Visionary Awards 2024 IBS Awards 2024 by Synnex Finnoviti award 2024 ETNow DATACON Awards 2024 TOP CIO OF THE Year 2024 India CISO Summit & BankTechX 2024 Awards 2024 by Synnex 43 40
Slide 44: Branch Network
TRUST AND EXCELLENCE 1904 - 2024 BRANCH NETWORK 44
Slide 45: Pan India Presence with Strong Foothold in the South
PAN INDIA PRESENCE WITH STRONG FOOTHOLD IN THE SOUTH TRUST AND EXCELLENCE 1904 - 2024 No. of % of % of % of STATE Branches Deposits Advances Business TAMILNADU 528 80% 66% 74% ANDHRAPRADESH 56 2% 7% 4% KARNATAKA 51 6% 5% 6% TELENGANA 41 3% 6% 4% GUJARAT 27 1% 3% 2% MAHARASHTRA 27 3% 4% 3% KERALA 18
Slide 46: Shareholding Pattern
TRUST AND EXCELLENCE 1904 - 2024 SHAREHOLDING PATTERN 46
Slide 47: A Well Diversified Investor Base
A WELL DIVERSIFIED INVESTOR BASE Position as on 30-Sep-2024 TRUST AND EXCELLENCE 1904 - 2024 Major Institutional Shareholders QIB, NRI, SHAREHOLDERS* HOLDING % 3.35 1.03 SBI Mutual Fund * 8.50 HDFC AMC * 6.26 Corp Bodies, Others, CAPITAL GROUP USA * 6.01 2.23 3.12 KOTAK FUND 4.59 FRANKLIN MUTUAL FUN
Slide 48: Corporate Governance
TRUST AND EXCELLENCE 1904 - 2024 CORPORATE GOVERNANCE 48
Slide 49: A Well Experienced and Strong Board
A WELL EXPERIENCED AND STRONG BOARD Shri. G. Mahalingam| M.Sc., MBA., CAIIB Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB Non-Executive Chairman TRUST AND EXCELLENCE M.D. & C.E.O. 1904 - 2024 Shri. Gurumoorthy Mahalingam is a career Regulator in the Financial Dr. N. Kamakodi is serving as MD & CEO of
Slide 50: Transparent Corporate Governance Practices
TRANSPARENT ‘CORPORATE GOVERNANCE’ PRACTICES TRUST AND EXCELLENCE 1904 - 2024 Board consists Various sub- of 8 Independent committees of Code of conduct Directors (including Board functions Disclosure norms KYC / AML Norms for Directors and 1 Women Director), to oversee the strictly adhered to stric
Slide 51: Contact
Contact TRUST AND EXCELLENCE 1904 - 2024 Regd. Office : 149,TSR Big Street, Kumbakonam – 612001,Tamilandu. Admin Office : "Narayana" No.24 B, Gandhi Nagar, Kumbakonam - 612001,Tamil Nadu. Tel : 0435-2402322, 2401622, | FAX: 0435-2431746 | www.cityunionbank.com INVESTOR CONTACT Raguraman Gopu, SM Loc
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