City Union Bank Ltd is a private sector lender mainly focused in southern Indian states. It is headquartered in Kumbakonam, Tamil Nadu, and provides its services through 752 branches and 1,678 ATMs.
The bank was incorporated on 31 October, 1904 as Kumbakonam Bank Limited. In 1930, the first branch of the bank was opened at Mannargudi in Tamil Nadu. Later, the bank expanded its operations with the opening of branches at Nagapattinam, Sannanallur, Ayyampet, Tirukattupalli, Tiruvarur, Manapparai, Mayuram and Porai.
In 1957, the bank took control of the assets and liabilities of CommonWealth Bank Ltd, leading to the addition of five branches. The first branch was inaugurated in 1965 in Chennai.
In April 1965, two local banks, City Forward Bank Limited and Union Bank Limited, were amalgamated with Kumbakonam Bank.
In September 1980 the bank opened its first branch outside Tamil Nadu in Bangalore. The lender also opened branches in Hyderabad, Secunderabad and Andhra Pradesh. In 1987, the name was changed to City Union Bank Limited.
In October 1990, the Reserve Bank of India granted CUB an Authorised Dealers Licence to deal in Foreign Exchange business.
In the financial year 1998, CUB launched its initial public offer (IPO). The market capitalisation of City Union Bank stood at over ₹11,000 crore as of December 30, 2023. CUB share price has decreased by 17.34% in the last three years.
Business operations of CUB
In 2000-01 the Bank set up an integrated Treasury Department at Chennai to manage the funds in an efficient way and in 2002-03 the bank signed a MoU with Life Insurance Corporation of India and National Insurance Co Ltd for selling insurance products.
CUB entered into a franchise agreement in 2004 for the Money Transfer Service Scheme of Western Union Financial Services Inc USA.
Later, the bank received a licence to operate as a depository participant under National Securities Depository Ltd. Between 2006-09, the bank expanded its network by opening branches and ATMs in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Gujarat and Maharashtra.
Currently, in 2023, the Bank opened 25 additional branches to a total of 752 branches and has 1678 ATMs as of 31st March 2023.
