City Union Bank Ltd, Managing Director and Chief Executive Officer, N. Kamakodi, is a man of few words, but his actions have often spoken louder. Media, business associates, customers and colleagues vouch for his understated style of leadership.
Days before demitting office, Kamakodi guided the bank to yet another milestone, crossing 1,000 branches, a symbolic marker in the institution’s steady expansion journey. The 15-year tenure, oversaw the expansion of the bank from a regional lender to a multi-state institution.
Branch expansion from Cauvery to Kashmir
In the last four weeks alone, the bank added 51 branches to its base of 949, taking the tally past 1,000, reflecting a fourfold increase over the past 15 years. As many as 125 branches were added in the last 13 months.
Founded in 1904 in Kumbakonam, Tamil Nadu, the bank today operates across 18 States and four Union Territories, extending its footprint from Cauvery to Kashmir.
Financial growth and balance sheet strength
Over Kamakodi’s tenure spanning 60 quarters, or 181 months, the bank navigated multiple economic cycles, including demonetisation, GST rollout and the COVID-19 pandemic, geo-political issues while maintaining stability in operations.
During this period, net worth grew 10x to ₹10,458 crore from ₹1,066 crore, while capital adequacy ratio improved to 21.92% from 12.75%, peaking at 23.75% in FY25. Net profit scaled a new high of ₹360 crore in a single quarter.
Asset quality and operational resilience
Gross non-performing assets remained below 2%, with net NPA at 0.68%. Slippages stood at 1.12%, while credit cost was contained at 0.04%. Both GNPA and NNPA have declined sequentially over the past eight quarters.
Net interest margin consistently remained above 3.5%, supported by a granular loan book and focus on retail, MSME and agricultural lending.
Market metrics and shareholder returns
Market capitalisation increased 11x to ₹19,450 crore, reserves and surplus rose 10x to ₹10,491 crore, while deposits and advances grew 6x and 7x to ₹78,308 crore and ₹66,699 crore, respectively. Net profit rose sixfold to ₹1,326 crore.
The bank also approved a bonus issue in the ratio of 1:3. It had earlier issued rights shares in 2012, 2017 and 2018, and maintained dividend payout above 85% to 200% barring 2017-21.
Q4 results
During Q4FY26, the bank reported a 25% growth in its net profit at Rs.360 crore over the corresponding period last year. Net Interest Income grew to Rs.786 crore from Rs.600 crore. The board recommended a special dividend of 200%.
Business strategy and transition
Under Kamakodi’s tenure, CUB maintained a conservative approach, focusing on retail, MSME and wholesale trade segments, while avoiding big corporates, this enabled it to navigate volatile phases effectively.
In the last 15 years, CUB expanded from its rural base into urban markets while steadily transitioning towards digital banking platforms without any technical glitch. It was the first private sector bank to introduce banking robot, multi-language chatbot among others.
As the bank prepares to bid farewell to one of the most successful bankers in the private sector on April 30, 2026, Vijay Anandh will be stepping into the former shoes to take the legacy forward.