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Why City Union Bank Is Not Keen On Pushing The ‘Growth Pedal’
India’s oldest listed private sector lender is convinced of its ‘slow and steady’ strategy.
06 Dec 2019, 01:08 PM IST 
A mural is displayed on the exterior of the Maya Pedal facility in San Andres, Iztapa, Guatemala. (Photographer: Daniele Volpe/Bloomberg)
City Union Bank Ltd. plans to maintain growth at only 3-5 percent above the industry average, sticking to its conservative strategy, according to its Managing Director and Chief Executive Officer N Kamakodi.
“If we try to push the growth pedal too much in the quest to attain larger market share, it affects our asset quality maybe five years down the line,” Kamakodi told BloombergQuint in an interview. “Being a long-term player, our aim is to keep growth rate 3-5 percent above the industry.”
The bank has given a total return of 1,185 percent over the last 10 years, nearly double the 599 percent return given by HDFC Bank Ltd., an investor favourite.
Watch | City Union Bank's N Kamakodi talks about the lender’s growth plans.