City Union Bank is poised for improved credit growth in the coming quarters, with approximately half of its loan book strategically positioned to benefit from recent GST rate cuts. The bank's Managing Director, N Kamakodi, has announced that the institution is currently evaluating the impact of these policy changes and plans to unveil a revised growth strategy alongside its upcoming quarterly results.

Loan Portfolio Outlook

The bank's loan portfolio is significantly weighted towards sectors expected to see enhanced demand following the GST rate adjustments. Key segments include:

• MSME (Micro, Small, and Medium Enterprises)
• Agriculture
• Trading

These sectors, which form a substantial portion of City Union Bank's portfolio, are anticipated to experience increased borrowing activity in the wake of the tax reforms.

Credit Growth Projections

City Union Bank's management has shared optimistic projections for system-wide credit growth:

The bank aims to maintain its strategy of outperforming industry growth levels by 2-3%, building on the momentum gained in the first quarter.

MSME Segment Performance

The MSME sector continues to be a strong performer for City Union Bank:

• Represents approximately 40% of the loan book
• Shows steady traction in lending activity

Financial Outlook

Despite acknowledging potential short-term pressures, the bank's management remains confident in its ability to sustain margins. This optimism is underpinned by the bank's strategic positioning and the expected boost from GST rate cuts.

Market Performance

City Union Bank's current market standing is as follows:

As City Union Bank adapts to the changing economic landscape, it remains focused on capitalizing on the opportunities presented by policy changes while maintaining its growth trajectory above industry averages.

City Union Bank (CUB) has expanded its presence in the national capital with the inauguration of a new branch in New Delhi, marking a significant step in the bank's growth strategy.

New Branch Details

The private sector lender opened its latest branch on August 21, 2025, at Rajouri Garden, a bustling commercial and residential area in West Delhi. The new branch is located at B-28, Vishal Enclave, Rajouri Garden, opposite Bharat Petrol Pump, New Delhi-110027.

Network Expansion

With this strategic addition, City Union Bank's branch network has now reached a total of 887 branches across the country. This expansion underscores the bank's commitment to enhancing its geographical footprint and improving accessibility for customers.

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, City Union Bank promptly informed the National Stock Exchange of India and BSE Ltd about the new branch opening. This transparency ensures that shareholders and the market are kept informed of the bank's expansion activities.

Strategic Growth

The opening of the Rajouri Garden branch in New Delhi is part of City Union Bank's broader strategy to strengthen its presence in key urban centers. By establishing a branch in this prime location, the bank aims to tap into the diverse banking needs of both retail and business customers in the area.

Investor Relations

In a separate but related development, City Union Bank also participated in Antique's "Build India, New India" Investor Conference on August 20, 2025, in Mumbai. This engagement with investors and analysts demonstrates the bank's proactive approach to maintaining strong relationships with the financial community and keeping them updated on the bank's growth initiatives.

The expansion into New Delhi's Rajouri Garden area reflects City Union Bank's ongoing efforts to enhance its market position and provide banking services to a wider customer base across India.