Dolat Capital: Initiating Coverage on City Union Bank - A Dependable Franchise  
A customer waits to deposit Indian 100 rupee banknotes at a bank branch. (Photographer: Dhiraj Singh/Bloomberg)

Dolat Capital: Initiating Coverage on City Union Bank - A Dependable Franchise  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

City Union Bank Ltd. is known for its consistently higher return ratios, contained asset quality and stable leadership.

Sticking to their relationship-based low ticket collateralized lending, avoiding the temptation of consortium lending/ wholesale borrowing, and growing in their region of expertise (Tamil Nadu and south) has held the bank in good stead over the years.

However, more recent years have seen softer recovery trends, resulting in gradual rise in non-performing asset ratio, even though return on asset impact was limited as net interest margin benefitted from increased efficiency (higher credit-deposit ratio) around the same time.

Click on the attachment to read the full report:

Dolat Capital City Union Bank Initiating Coverage.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.