Chennai: City Union Bank aims to maintain its long-standing record of outpacing industry growth while retaining its conservative lending model, management said on Wednesday.
Leadership Transition
As N Kamakodi prepares to step down after a 15-year stint as MD & CEO of the old private sector lender, R Vijay Anandh will take charge on May 1, 2026. Anandh indicated the bank will aim to maintain its decade-long track record of growing 2–3 percentage points above the industry average, while keeping the loan-to-deposit ratio (LDR) in the 85%–87% range.
"With a stable model already in place, there is no need for drastic changes," he said, pointing to a targeted loan growth of 15%–18%.
Core Focus Areas
The bank will retain its core focus on MSMEs, which account for 55%–60% of its loan book, while gradually expanding secured retail lending. Agri gold loans, contributing about 30% of advances, will remain another mainstay.
Retail remains a smaller segment but is scaling up, with the book growing from about Rs 3,000 crore in its first year to Rs 6,000–7,000 crore currently. "MSME will remain the top priority, followed by gold loans and then retail, which we expect to contribute 7–8% of the total book," Anandh said.
Expansion Strategy
The bank will also continue to expand its branch network, which has now crossed 1,000. A key element of its strategy is deepening relationships with existing customers rather than aggressive new acquisitions. Retail products, including credit cards, are largely being offered to existing MSME clients and their ecosystems, as well as younger customers entering the workforce.
