City Union Bank Q2 Review - Upgraded For The First Time In Feb, Showcases Positive Outcomes: Yes Securities

Yes Securities Report

Balance sheet growth – Loan growth improved materially on sequential basis as digital under-writing seemed to improve lending throughput:

Whole City Union Bank Ltd.'s advances grew 4.7%/11.5% QoQ/YoY. Owing to digital under-writing, for 75-80% of MSME loans, the bank is now taking credit decisions in three-dour days compared with three weeks earlier.

Management stated that, for FY25, the bank is taking steps to touch banking industry growth. This would be a material improvement over the mid single digit growth observed for two years over FY23-24.

Management further opined that system growth could be matched by growing traditional MSME loans and without any material benefit from the new initiatives on retail lending, which would make some impact only in FY26.

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