City Union Bank (CUB) has announced the opening of two new branches in Tamil Nadu, expanding its network and enhancing its presence in the state. The bank informed the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) about this development as part of its regulatory disclosure requirements.

New Branch Locations

The two new branches, which commenced operations on September 26, 2025, are strategically located in:

1. Pananvayal, Sivagangai District:

   • Address: No. 1358/8, Panampatti 1st Street, Aranthangi Main Road, Pananvayal, Sirugapatti Village, Peerkalaikadu - 630 108

2. Sethupattu, Kancheepuram District:

   • Address: Door No. 377, Sethupattu Main Road, Sethupattu Village Panchayat, Kundrathur Panchayat Union & Taluk - 601 301

Network Expansion

With the addition of these two branches, City Union Bank's total branch count has reached 889. This expansion aligns with the bank's strategy to strengthen its footprint and improve accessibility for customers across Tamil Nadu.

Regulatory Compliance

The bank's prompt disclosure of this information to the stock exchanges demonstrates its commitment to transparency and adherence to the Securities and Exchange Board of India (SEBI) Listing Obligations & Disclosure Requirements Regulations, 2015.

City Union Bank continues to focus on expanding its physical presence, even as the banking sector increasingly embraces digital channels. This move suggests the bank's dedication to serving diverse customer needs through a mix of traditional and modern banking approaches.

As City Union Bank grows its branch network, it aims to enhance its service delivery and cater to the financial needs of more communities across Tamil Nadu.

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.