ICICI Securities research report on City Union Bank
We hosted City Union Bank (CUB)’s senior management (business heads and risk personnel) in Chennai. The bank mentioned that its direct exposure to textiles (US export) is manageable at INR 2.2bn or ~40bps of loans. CUB acknowledges the possible rise in systemic stress in small-ticket LAP and unsecured business banking, but reiterated that it is almost absent in those segments. It expects net slippages to be negative for FY26. Retail secured products’ disbursements have been tracking well at ~INR 24bn annual run-rate vs. INR 6bn in H2FY25. CUB appears confident to deliver superior growth (15–16% YoY) along with resilient NIM.
Outlook
While we acknowledge a lower base (for both growth/NIM), sustainability ahead shall be crucial. Maintain BUY with an unchanged TP of INR 250.
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