CUB and Dr.N. Kamakodi

Dr.N. Kamakodi with CUB:
15 years as MD & CEO coming to an end

Dr. Shri N.Kamakodi (Dr. Kamakodi),  Managing Director and CEO of City Union Bank Ltd. (CUB) for the last fifteen years, is demitting his office today. Shri R. Vijay Anandh, currently Executive Director of the Bank will be assuming charge as the new MD & CEO with effect from tomorrow (1st May 2026). As a mark of deep gratitude, respect and acknowledgement to the meritorious services received from Dr. Kamakodi, the bank has narrated (in its investors' presentation) the journey of its progress in the last fifteen years, with the latter being at the helm of affairs. 

With an increase of 

2 times in capital (paid up), 4 times the number of branches (network across India) and 3 times the number of staff (human resources) 

the bank multiplied 

its total business (deposits and advances) 7 times, net profit 6 times, reserves and surplus (net worth as well) 10 times and market capitalization (share price in the market) 11 times. 

No further presentation of figures is considered necessary to understand the phenomenal and sustained growth achieved by CUB under the leadership of Dr. Kamakodi. (The relevant pages of the presentation are given at the end of the article)

The following strengths appear to have been leveraged by Dr.Kamakodi in achieving the present position under business, net worth and market capitalization.

1.  Nearly 300 branches and more than 3000 staff were added since COVID period (2020-21). The concentration in branches is also seen applied uniformly among metro, urban, semi-urban and rural areas, keeping in mind the potential in such areas.

2. Granular retail deposit base, the strength of CUB was never compromised. Even today, the bank's investments and lending are supported by the above deposit base, without any reliance on bulk deposits.

3. Lending to MSME and Trading is the strength and bottom-line culture of CUB from the beginning. It accounts for almost 46% of total advances. And gold loan portfolio, both under retail and agriculture, now at 29% of total advances, is an opportunity grabbed by CUB as it timely sensed that loans against gold are no longer taken by individuals for consumption purposes alone but for expansion of business, investments in real and financial assets, etc. These two portfolios are the major reasons for the NIM to remain at 3.7% plus. MSME, due to the guarantee available under the credit guarantee scheme and the gold taken as security being an eligible cash collateral helped the bank in improving its Capital Adequacy Ratio (CAR), which is impressive at 22%

4. The major success of Dr. Kamakodi lies in the fact that similar to keeping the deposits as granular from individuals and retail, the loans have minimal exposure to consortium/multiple banking and are extended under the sole lending banker concept.

5. CUB was not known for lateral recruitments a few years back. Dr. Kamakodi succeeded in convincing the staff that while their career interests will be protected, the bank had to go in for lateral recruitments at middle and senior management levels to attract the best banking talents into the bank. It is to the credit of the MD that CUB is one of the very few old generation private sector banks that came out of the industry wise bipartite settlements entered into by IBA with the workmen/Officers' unions. And the wage settlements and superannuation benefits extended to the staff are, in fact, better than the settlements entered into at the industry level.

6. CUB raised its equity by Rs.350 cr. in 2014 by way of QIP. Except that solitary instance, accretion to the reserves and surplus is by way of retained earnings only. (Net worth increased by ten times in the last 15 years). The shareholding pattern is also seen contributed mainly by financial institutions (33%), Public (32%) and FPI (23%). PE ratio at 15.5% and PB ratio at 2.32% reflects the investors' confidence in the stocks of the bank resulting in a eleven fold increase in market capitalization at Rs.19450 cr. 

7. (i) Increasing the share in home/auto loans, secured personal loans by way of check-off facility/standing instructions, 

(ii) improving the CASA to one third of total deposit base and 

(iii) increasing the income from investments, which is one fourth of the total deposit base 

are some of the initiatives that are work-in-progress and have started yielding results in the last few years.

Dr. Kamakodi is known for his personal touch and professional approach. He is simple, unassuming and is unyielding when it comes to performance and taking the bank to greater heights. During one of my personal interactions, when I asked him why the bank is not leveraging its strength to join a few consortiums of lending to AAA rated companies, his answer was simple. "I think with the limited resources available and plenty of opportunities lying in the RAM space, it is better that CUB continue to play in its area of strength".

I take this opportunity to wish MD & CEO, Dr.Kamakodi, the incoming MD & CEO Shri R. Vijay Anandh and CUB all success in all their future endeavors. May the Almighty continue to bless the 122 years 'young' CUB and CUBians to serve their ever-increasing customer base and the nation as ever before.

Regards

V.Viswanathan

CGM Retired, e-SBT

30th April 2026.