City Union Bank Limited has accelerated its expansion strategy with multiple branch openings across India. The bank has informed the National Stock Exchange of India Limited and BSE Limited about these developments under Regulation 30 of SEBI Listing Regulations 2015.

Comprehensive Branch Network Expansion

The bank opened three new branches on March 25, 2026, followed by two additional branches on March 26, 2026, five more branches on March 27, 2026, and seven new branches on March 30, 2026. With these latest additions, City Union Bank's total branch count has reached 949, demonstrating the bank's sustained focus on strengthening its physical presence across different geographical locations in India.

March 25, 2026 Branch Openings

The first set of three new branches were strategically located across two states:

March 26, 2026 Branch Openings

The following day, the bank opened two additional branches in new states:

March 27, 2026 Branch Openings

On March 27, 2026, the bank included five new branches across three states:

March 30, 2026 Branch Openings

The latest expansion on March 30, 2026, added seven new branches across Tamil Nadu and Telangana, bringing the total network to 949 branches:

Strategic Geographic Distribution

The recent expansion demonstrates City Union Bank's strategic approach to geographic diversification. The bank has established presence in Rajasthan with the Bharatpur branch, significantly expanded its footprint in Tamil Nadu with multiple branches across various districts, and entered new markets in Andhra Pradesh, Madhya Pradesh, Delhi, Haryana, and Telangana. The March 30 expansion particularly strengthened the bank's presence in Tamil Nadu with six new branches and added one strategic location in Hyderabad, Telangana.

Regulatory Compliance

The bank has fulfilled its regulatory obligations by informing both major stock exchanges about these expansions. The communications were signed by Venkataramanan S, Company Secretary & Compliance Officer, ensuring proper documentation and transparency with stakeholders and regulatory authorities.

City Union Bank Limited has received an assessment order from the Income Tax Department that significantly impacts its refund claim for Assessment Year 2024-25. The bank disclosed this development through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Assessment Order Details

The Income Tax Department's Assessment Unit passed an order under section 143(3) of the Income Tax Act, reducing the bank's refund claim substantially while raising nil demand. The bank received this communication on March 24, 2026.

Nature of Disallowances

The assessment order involved partial disallowance of several claims made by the bank. The tax authorities disallowed specific deductions that the bank had claimed under various provisions of the Income Tax Act.

Key Disallowances Include:

• Deduction claimed under section 36(1)(vii)
• Deduction claimed under section 36(1)(viii)
• Three additional deductions (specifics not detailed)

Bank's Response and Legal Position

City Union Bank has expressed confidence in its legal position regarding the disallowed claims. The bank emphasizes that its deduction claims are fully allowable based on judicial pronouncements in its own case. Additionally, the bank notes that the same assessment unit had allowed similar claims in previous years, suggesting inconsistency in the current assessment approach.

Financial Impact and Next Steps

The bank has indicated that it is in the process of filing an appeal against the assessment order. Based on previous legal precedents and favorable outcomes in similar cases, the bank expects fair chances of success in the appellate process.

Management's Assessment:

• Claims are supported by judicial pronouncements in bank's favor
• Similar claims were allowed by the same unit in earlier years
• Appeal process to be initiated
• No material impact expected on financial statements

The bank's management has stated that the demand would not have any material impact on the financial statements, indicating confidence in the eventual resolution of the matter through the appellate process.