City Union Bank Limited · NSE:CUB
City Union Bank — Q3 FY2024 Earnings Presentation
50 slides from City Union Bank's earnings presentation, Feb 1, 2024
Slide 1: City Union Bank Limited - Exchange Filing Cover Letter
City UNION BANK LIMITED cus! CIN : L65110TN1904PLC001287 CUB Regd. Office : 149, T.S.R. (Big) Street, Kumbakonam - 612 001, Thanjavur District, Tamil Nadu. Telephone No : 0435 - 2402322 Fax : 0435 - 2431746 ‘TRUST AND EXCELLENCE SINCE 1904 E-mail : shares@cityunionbank.in Website : www.cityunionbank
Slide 2: Investor Presentation December 2023
INVESTOR PRESENTATION December 2023
Slide 3: 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 4: Table of Contents
Table of Contents TRUST AND EXCELLENCE 1904 - 2024 Overview ........................................................................................................................ 04 Performance Highlights – December 2023 ......................................................................... 10
Slide 5: Overview
TRUST AND EXCELLENCE 1904 - 2024 OVERVIEW 04
Slide 6: Overview - 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 7: 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 8: City Union Bank - Specialized Banking Model for SME / MSME
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 9: Competitive Advantages
COMPETITIVE ADVANTAGES TRUST AND EXCELLENCE 1904 - 2024 NETWORK STRONG TRACK RECORD • Continuous profitability and dividend • Pan India presence with 772 branches payout in all 120 years of operations • Strong presence in South India (683 • Business growth of about 15% CAGR in branches) of which 524
Slide 10: 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 11: Performance Highlights – December 2023
TRUST AND EXCELLENCE 1904 - 2024 PERFORMANCE HIGHLIGHTS – DECEMBER 2023 10
Slide 12: Q3 FY 2024 Performance – A Snapshot
Q3 FY 2024 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 • Deposits increased by 5% from Rs.500 Bn to Rs.527 Bn Y-o-Y • Advances registered a growth of 2% from Rs.430 Bn to Rs.440 Bn Y-o-Y • The total business grew by 4% from Rs.930 Bn to Rs.967 Bn Y-o-Y • Profitability and efficiency ra
Slide 13: 9M FY 24 vs 9M FY 23 Performance – A Snapshot
9M FY 24 VS 9M FY 23 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) 527,264 440,173 967,437 153,589 5% 2% 4% 5% 499,974 430,087 930,061 146,055 Deposits Advances Total Business CASA 11,649 7,609 15,769 45.65% 6% % 14,009 7,194 16,485 38.12 % Gross Profit Net Profit Net Interes
Slide 14: Q3 FY 24 vs Q3 FY 23 Performance – A Snapshot
Q3 FY 24 VS Q3 FY 23 PERFORMANCE – A SNAPSHOT TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) 527,264 440,173 967,437 153,589 5% 2% 4% 5% 499,974 430,087 930,061 146,055 Deposits Advances Total Business CASA 3,641 2,531 5,159 48.64% 16% % 4,973 2,178 5,557 36.24 % Gross Profit Net Profit Net Interest C
Slide 15: Financial Performance & Business Profile
TRUST AND EXCELLENCE 1904 - 2024 FINANCIAL PERFORMANCE & BUSINESS PROFILE 14
Slide 16: 9M FY 24 vs 9M FY 23 Performance - Financial Performance
TRUST AND EXCELLENCE 1904 - 2024 9M FY 24 VS 9M FY 23 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS DEC 23 DEC 22 INC / (DEC) Growth Growth % SEP 23 Deposits 527,264 499,974 27,290 5% 527,140 Advances 440,173 430,087 10,086 2% 436,881 Total Business 967,437 930,061 37,376 4%
Slide 17: 9M FY 24 vs 9M FY 23 Financial Performance
TRUST AND EXCELLENCE 1904 - 2024 9M FY 24 VS 9M FY 23 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS 9M FY 24 9M FY 23 INC / (DEC) Growth % Net Interest Income 15,769 16,485 -716 -4% Other Income 5,664 6,153 -489 -8% Operating Expenses 9,784 8,629 1155 13% Gross Profit 11,649
Slide 18: Q3 FY 24 vs Q3 FY 23 Financial Performance
TRUST AND EXCELLENCE 1904 - 2024 Q3 FY 24 VS Q3 FY 23 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE (in INR Mn) PARTICULARS Q3 FY 24 Q3 FY 23 INC / (DEC) Growth % Q2 FY 24 Net Interest Income 5,159 5,557 -398 -7% 5,384 Other Income 1,929 2,243 -314 -14% 1,821 Operating Expenses 3,447 2,827 620 22%
Slide 19: Provisions & Contingencies – Breakup
TRUST AND EXCELLENCE 1904 - 2024 PROVISIONS & CONTINGENCIES – BREAKUP (in INR Mn) PARTICULARS Q3 FY 24 Q3 FY 23 9M FY 24 9M FY 23 Q2 FY 24 FY 22-23 Provision for: - Tax 650 550 1,500 2,000 500 2,400 - Bad Debts 260 2,700 2,940 5,150 280 6,900 - Contingency 200 (305) (190) (185) 300 -175 - Standard A
Slide 20: 9M FY 24 vs 9M FY 23 – Income and Expenses Breakup
TRUST AND EXCELLENCE 1904 - 2024 9M FY 24 VS 9M FY 23 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS 9M FY 24 9M FY 23 Growth % PARTICULARS 9M FY 24 9M FY 23 Growth % Interest on Loans 30,728 28,266 9% Int Exp on Deposits 21,416 30% 16,453 Int
Slide 21: Q3 FY 24 vs Q3 FY 23 – Income and Expenses Breakup
TRUST AND EXCELLENCE 1904 - 2024 Q3 FY 24 VS Q3 FY 23 – INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS Q3 FY 24 Q3 FY 23 Growth % PARTICULARS Q3 FY 24 Q3 FY 23 Growth % Interest on Loans 10,359 9,695 7% Int Exp on Deposits 7,396 5,732 29% Intere
Slide 22: Deposits and Advances Growth – Over the Years
DEPOSITS AND ADVANCES GROWTH – OVER THE YEARS TRUST AND EXCELLENCE 1904 - 2024 DEPOSITS ADVANCES (in INR Mn) 5,23,979 5,27,264 4,39,708 4,40,173 4,76,897 4,11,560 4,45,370 3,70,206 4,08,325 3,45,762 31-3-2020 31-3-2021 31-3-2022 31-3-2023 31-12-2023 31-3-2020 31-3-2021 31-3-2022 31-3-2023 31-12-2023
Slide 23: 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 7,591 19,165 (9 M) 6,799 6,887 (9 M) 18,297 16,752 15,769 5,664 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 31-DEC-2023 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 31-DEC-
Slide 24: Key Business Indicators
TRUST AND EXCELLENCE 1904 - 2024 KEY BUSINESS INDICATORS PARTICULARS Q3 FY 24 Q3 FY 23 9M FY 24 9M FY 23 Q2 FY 24 FY 22-23 Cost of Deposits 5.67% 4.62% 5.51% 4.52% 5.51% 4.66% Yield on Advances 9.62% 9.16% 9.64% 9.20% 9.77% 9.23% Yield on Investments 6.31% 5.91% 6.23% 5.86% 6.28% 5.89% Net Interest
Slide 25: 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% 1.60% 1.52% 4.50% 1.46% 1.50% 1.40% 1.35% 3.98% 4.00% 3.98% 4.00% 3.89% 1.30% 3.63% 1.20% 1.15% 3.50% 1.10% 1.00% 1.00% 3.00% 0.90% 31-MAR-20 31-MAR-21 31-MAR-22 31-MAR-23 31-DEC-23
Slide 26: Cost of Deposits & Yield on Advances
COST OF DEPOSITS & YIELD ON ADVANCES TRUST AND EXCELLENCE 1904 - 2024 (in %) 16 14 13.43 13.18 12.83 12.10 12 11.46 10.95 10.76 9.91 9.64 10 9.36 9.23 8.37 8.15 7.62 8 6.82 6.29 6.17 6.20 6 5.36 5.51 4.68 4.66 4 2 0 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Dec 23 Spread
Slide 27: Loan Book – Products Composition
TRUST AND EXCELLENCE 1904 - 2024 LOAN BOOK – PRODUCTS COMPOSITION % to Total Advances Trading & MSME loans constitute about 46% 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 28: Loan Book Sectoral Deployment – Position as on 31.12.2023
LOAN BOOK SECTORAL DEPLOYMENT – POSITION AS ON 31.12.2023 Loans collateralized TRUST AND EXCELLENCE 1904 - 2024 Large Industries NBFC by Deposits 7,341 (in INR Mn) 7,467 11,021 Retail Traders Infrastructure 9,240 2,838 Personal Loans 1% 2% 12,152 2% 2% Wholesale Traders 2% 14,683 3% Housing 20,923 5
Slide 29: 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 31st December 2023 TEXTILE a) Cotton 19,710 (4%) b) Other Textiles 25,506 (6%) METALS a) Iron & Steel 10,575 (2%) Amount % to Total Industry Name b) Other Metal
Slide 30: Gold Loan Book – Q3 FY 24
GOLD LOAN BOOK – Q3 FY 24 TRUST AND EXCELLENCE 1904 - 2024 (in INR Mn) GOLD LOAN PORTFOLIO Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Gold Loan – Agriculture 68,981 69,631 64,774 60,639 56,847 Gold Loan – Non-Agriculture 38,258 40,641 43,031 48,159 49,063 Total Gold Loans 107,239 110,272 107,805 108,798 105
Slide 31: Asset Quality
TRUST AND EXCELLENCE 1904 - 2024 ASSET QUALITY (in INR Mn) GROSS NPA QTM & GROSS NPA % NET NPA QTM & NET NPA % 5.11% 11,911 10,752 4.70% 10,176 4.47% 9,409 4.37% 4.09% 7,785 18,932 19,332 19,202 19,681 14,134 2.97% 2.95% 2.29% 2.36% 2.19% 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Dec-23 31-Mar-20 3
Slide 32: Asset Quality Position – Movement Over the Years
ASSET QUALITY POSITION – MOVEMENT OVER THE YEARS TRUST AND EXCELLENCE 1904 - 2024 (In INR MN) FY MAR-19 FY MAR-20 FY MAR-21 FY MAR-22 FY MAR-23 Q3 FY 24 9M FY 24 NPA Opening balance 8,565 9,771 14,134 18,932 19,332 20,346 19,202 Additions A 6,322 11,104 11,131 12,757 13,290 1,872 7,941 Recovery made
Slide 33: 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 Sep-22 Mar-23 Dec-23 Type of Restructuring No. of No. of No. of No. of No. of Amt Amt Amt Amt Amt Borrowers Borrowers Borrowers Borrowers Bo
Slide 34: Security Receipts
SECURITY RECEIPTS TRUST AND EXCELLENCE 1904 - 2024 Balance outstanding of Security Receipts wrt NPA sold to ARC Period ended Amount (in INR Mn) Mar-20 2474 Mar-21 1429 Mar-22 917 Sep-22 804 Dec-22 12 Mar-23 12 Jun-23 319 Sep-23 313 Dec-23 313 In Q3 FY 23, we had written off SRs which had crossed th
Slide 35: Investments – At a Glance
TRUST AND EXCELLENCE 1904 - 2024 INVESTMENTS – AT A GLANCE Investments Breakup and Category wise (in INR Mn) Particulars Dec 2023 Dec 2022 SLR Securities 155,250 143,633 Non-SLR Securities 1,551 919 Total Investments 156,801 144,552 Yield on Investments 6.23% 5.86% Investments Breakup: - A FS 36,231
Slide 36: Digital Initiatives
TRUST AND EXCELLENCE 1904 - 2024 DIGITAL INITIATIVES 35
Slide 37: New Digital Offerings
TRUST AND EXCELLENCE 1904 - 2024 New Digital Offerings Product Offerings 01 02 03 04 05 Voice Based IOT Based Aadhaar based UPI Lite New Initiatives UPI Payments UPI Payment PIN generation e-BG for UPI123 Pay Retail & MSME Pay to Scan & Pay/ QR UPI - ATM Whatsapp Products Digital Lending Contact Ban
Slide 38: New Products Launched
TRUST AND EXCELLENCE New products launched 1904 - 2024 “Hello UPI” - conversational payments through voice based transactions. It will work in both smartphones & Feature phones Hello! UPI - in local languages. Conversational Payment To increase the digital penetration in rural areas, launched Aadhaa
Slide 39: New Products Launched - Digital Lending and e-BG
TRUST AND EXCELLENCE 1904 - 2024 New products Launched Digital Lending - Instant Loans e-BG Issuing Electronic Bank Loan Against MSME Property Guarantee (e-BG) for our Retail & Corporate Housing Loan Customers 38 34
Slide 40: New Products Launched - Salary Accounts
TRUST AND EXCELLENCE 1904 - 2024 New products Launched CUB Salary accounts CUB Salary Plus CUB Salary Prime Account Account Airport Lounge Access Insurance Cover Zero Balance Credit Card Reimbursement Account Life-style Privileges Key Chain Debit Card * T&C Apply 39 34
Slide 41: API Banking - Strategic Partnerships
TRUST AND EXCELLENCE 1904 - 2024 Strategic Partnerships Account Digital Opening Lending Payments API BANKING Correspondent Customer Banking Digital Onboarding Insurance 0 7 40 34
Slide 42: Awards Received During FY2023-24
Awards Received During this FY2023-24 TRUST AND EXCELLENCE 1904 - 2024 @ The Economics Times at IBS awards by Synnex DataCon Awards 2023 Indian Banking Sumit & Awards 2023 Digital Bank BFSI Innovation Confex & Digital Transformation Awards 2024 Leader (CIO/CTO) 41
Slide 43: Branch Network
TRUST AND EXCELLENCE 1904 - 2024 BRANCH NETWORK 42
Slide 44: 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 524 81% 66% 74% ANDHRAPRADESH 52 2% 7% 5% KARNATAKA 45 6% 5% 6% TELENGANA 38 3% 6% 4% MAHARASHTRA 23 2% 4% 3% GUJARAT 21 1% 3% 2% KERALA 18
Slide 45: Shareholding Pattern
TRUST AND EXCELLENCE 1904 - 2024 SHAREHOLDING PATTERN 44
Slide 46: A Well Diversified Investor Base
A WELL DIVERSIFIED INVESTOR BASE Position as on 31-Dec-2023 TRUST AND EXCELLENCE 1904 - 2024 Major Institutional Shareholders QIB, NRI, SHAREHOLDERS* HOLDING % 3.69 1.03 SBI MUTUAL FUND * (1) 6.85 CAPITAL RESEARCH & MANAGEMENT, USA *(1) 6.15 Corp Bodies, Others, HDFC ASSET MANAGEMENT * (2) 6.07 2.56
Slide 47: Corporate Governance
TRUST AND EXCELLENCE 1904 - 2024 CORPORATE GOVERNANCE 46
Slide 48: A Well Experienced and Strong Board
A WELL EXPERIENCED AND STRONG BOARD Shri. M. Narayanan | B.Sc. FCA, Grad CMA, DISA TRUST AND EXCELLENCE Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB 1904 - 2024 Non-Executive Chairman M.D. & C.E.O. Shri. M. Narayanan is a practicing Chartered Accountant by profession Dr. N. Kamakodi is serving as MD
Slide 49: Transparent Corporate Governance Practices
TRANSPARENT ‘CORPORATE GOVERNANCE’ PRACTICES TRUST AND EXCELLENCE 1904 - 2024 Board consists Various sub- of 9 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 strict
Slide 50: 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 Locate