It's not About the Size

Small is beautiful is the mantra on which the small-cap bank City Union Bank (CUB) is cruising through tough times. Incorporated as The Kumbakonam Bank Limited in October, 1904. CUB now has a national visibility coming out of just being a regional bank. Now headquartered in Chennai, CUB was started as a local player for the Thanjavur District in Tamil Nadu. With more than a 100-year history, it is one of the oldest private banks in India, which has witnessed several amalgamations. In 1957, the bank took over the Common Wealth Bank and subsequently, two other local banks; The City Forward Bank and The Union Bank in 1965 and was renamed The Kumbakonam City Union Bank. With an intention to operate at the national level, the bank was finally named City Union Bank in 1987. The bank now has around 540 ATMs and 300 branches spread all over India. Strengths Amid the situation of rising NPAs in the banking sector, CUB has managed to reduce its gross NPA by 20 basis points to 1.01 per cent from 1.21 per cent in 2011. Net NPA stands at 0.44 per cent which is amongst the best compared to other banks. CUB has managed to achieve this with its strict portfolio monitoring, aggressive recovery of bad loans and its prediction of the probable slippages in its loan book. * CUB occupies the topmost position in South India in the bancassurance segment. The bank has partnerships wit

This article was originally published on January 18, 2013.