#1CUB CUB Trust and Excellence SINCE 1904 CITY UNION BANK INVESTOR EPRESENTATION June 2023#2Disclaimer No representation or warranty, express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness, or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be "forward-looking statements", including those relating to the bank's general business plans and strategy, its future financial condition and growth prospects, and future developments in the industry and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the bank's business, its competitive environment, and political, economic, legal, and social conditions in India. This communication is for general information purposes only, without regard to specific objectives, financial situations, and needs of any person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the bank and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revisions or changes. This presentation should not be copied and/or disseminated in any manner. CUB CUB 02#3Table of Contents Overview Performance Highlights - June 2023 04 10 Financial Performance & Business Profile 14 Digital Initiatives Branch Network Shareholding Pattern Corporate Governance CUB CUB 36 40 42 44 03#4CUB CUB OVERVIEW 04#5Overview City Union Bank Ltd., the oldest Private Sector Bank in India, was founded on October 31, 1904, and is headquartered in Kumbakonam, Tamil Nadu, India. The main focus of the Bank - lending to MSME, Retail / Wholesale Trade with a granular asset profile including providing Short-term and long-term loans to the agricultural sector. FACTS & FIGURES Position as on 30.06.2023 CUB CUB Deposits Advances % INR 51,655 CR INR 42,405 CR Net Interest Margin 3.67% 00 Net NPA 2.51% Employees 6,327 金 金 Branch ATM BOO 752 ATM's 1,671 Efficiency ratio 41.98% 05#6KEY MILESTONES CUB CUB 1904 Incorporation of the Bank 02 1957 Took over Common Wealth Bank Limited 01 2003 Obtained licenses to act as an agent for procuring life insurance & general insurance business 1945 Scheduled bank since 22.03.1945 80 03 1998 Initial Public Offering (IPO); Listing bank's shares on the BSE, NSE & MSE 04 05 06 1965 Amalgamation of 'The City Forward Bank Limited & 'The Union Bank Limited with our Bank 2002 Entered into agreement with TCS for core banking solution "Quartz 2009 Rights Issue @ 1:4 to reward the existing Shareholders 10 2014 Raised INR Rs.3,500 mn in Equity capital Through QIP route 12 07 2007 Preferential allotment for equity shares strengthening bank's capital funds 09 90 2012 Rights Issue @ 14-to reward the existing shareholders & employees under 11 "Employee Reservation Scheme" 2017 & 2018 Bonus issue @ 1; 10- rewarded to the existing shareholders 06#7CITY UNION BANK A SPECIALIZED BANKING MODEL ALIGNED TO TARGET SEGMENT – SME / MSME - CUB CUB SME / MSME focus Prudent Risk Management Invested in Robust Infrastructure Purely retail Liability Franchise SME/MSME specialized business model focusing on large untapped segment. Segment consistently delivering higher yields. Superior client servicing leading to client retention and low business acquisition costs. SME exposures' result in granular asset profile. Granular deposit base with high retention rates result in stable liability profile. SME/ MSME Loans result in lower NPA as they are: Additionally collateralized by residential property and personal guarantees etc. Predominantly single banker relationships with minimal exposure to consortium / multiple banking arrangements / infrastructure lending. 10-year CAGR of about 15% Comprehensive employee training and recruitment infrastructure through staff training college. All branches and 100% business under CBS from TCS. No Certificate of Deposit No reliance on Corporate bulk deposits. Consistent Return with Superior ROA, ROE 07#8COMPETITIVE ADVANTAGES NETWORK • • Pan India presence with 752 branches Strong presence in South India (669 branches) of which 519 are in Tamil Nadu alone ADEQUATELY CAPITALISED Strong Capital Adequacy ratio of 23.02% out of which Tier 1 constitutes 21.98% MSME / TRADING PORTFOLIO CUB CUB Trading and MSME loan segments constitute about 48% of advances 01 N 02 03 04 - 05 55 06 STRONG TRACK RECORD Continuous profitability and dividend payout in all 115+ years of operations Business growth of about 15% CAGR in last 10 years ROBUST CORPORATE GOVERNANCE PRACTICES Strong board with majority of directors being independent directors Consistency in management with only 7 CEOS appointed in 115+ years DIVERSIFIED ASSET PROFILE Granular asset profile with advances to top 20 group borrowers contributing around 6,74% Lower ticket size lending backed by adequate collaterals 08#9CREDIT RATING CUB CUB ICRA has assigned • • "AA-" for Long Term - issuers with this rating are considered to have "High Degree of Safety" regarding timely servicing of financial obligations. "A1+" for Certificate of Deposits (CD) - issuers with this rating are considered to have "Strong Degree of Safety" regarding timely payment of financial obligations. CRISIL has assigned • "A1+" for Certificate of Deposits (CD) - issuers with this rating are considered to have "Very Strong Degree of Safety" regarding timely payment of financial obligations. 09#10CUB CUB PERFORMANCE HIGHLIGHTS - JUNE 2023 10#11. Q1 FY 2024 PERFORMANCE - A SNAPSHOT Deposits increased by 6% from Rs.488 Bn to Rs.517 Bn Y-o-Y Advances registered a growth of 4% from Rs.409 Bn to Rs.424 Bn Y-o-Y The total business grew by 5% from Rs.897 Bn to Rs.941 Bn Y-o-Y • Profitability and efficiency ratios: PARTICULARS Q1 FY 24 Q1 FY 23 FY 2022-23 FY 2021-22 Return on assets 1.40% 1.46% 1.46% 1.35% Net interest margin 3.67% 3.95% 3.89% 3.98% Return on Equity Earning per share 12.10% 13.57% 13.42% 12.31% Rs.3.08 Rs.3.04 Rs.12.67 Rs.10.29 Gross NPA- 4.91% and Net NPA- 2.51% • Provision Coverage Ratio - 70% (with TW) & 50% (without TW) • CRAR 23.02% (Basel III) of which core CRAR - 21.98% CUB CUB 11#12Q1 FY 24 VS Q1 FY 23 PERFORMANCE - A SNAPSHOT CUB CUB 516,548 6% 487,721 424,048 4% 409,341 940,596 5% 897,062 158,931 3% 153,870 Deposits Advances Total Business CASA 4,143 2,273 5,226 41.98% 1% 4,471 Gross Profit 1.40% ROA 2,251 5,249 Net Profit Net Interest Income (in INR Mn) % 39.78 % Cost to Income 12.10% 3.67% 4.91% ROE NIM Gross NPA 2.51% Net NPA 70% PCR QI FY 24 QI FY 23 12#13FY 23 VS FY 22 PERFORMANCE - A SNAPSHOT CUB CUB 523,979 ₹ 10% 476,897 439,708 7% 411,560 Deposits Advances 18,180 14% 15,953 Gross Profit 963,687 8% 888,457 Total Business 9,375 23% 7,602 Net Profit 21,628 13% 19,165 Net Interest Income 156,569 1% 155,294 CASA 38.85% (in INR Mn) 40.37 % Cost to Income 1.46% 13.42% 3.89% 4.37% ROA ROE NIM Gross NPA 2.36% Net NPA 69% PCR FY 23 FY 22 13#14CUB CUB FINANCIAL PERFORMANCE & BUSINESS PROFILE 14#15FY 23 VS FY 22 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE PARTICULARS FY 2023 FY 2022 INC / (DEC) Growth Growth % Deposits 523,979 476,897 47,082 10% Advances 439,708 411,560 28,148 7% Total Business 963,687 888,457 75,230 8% Demand Deposits 47,637 46,193 1,444 3% Saving Deposits 108,932 109,101 CASA 156,569 155,294 1,275 1% Gross NPA 19,202 19,332 Net NPA 10,176 11,911 Gross NPA (%) 4.37% 4.70% Net NPA (%) 2.36% 2.95% CRAR (BASEL -III) 22.34% 20.85% - Of which Tierl 21.27% 19.78% CD Ratio 84% 86% PCR 69% 64% CUB CUB (in INR Mn) 15#16Q1 FY 24 VS Q1 FY 23 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE CUB CUB PARTICULARS Q1 FY 24 Q1 FY 23 INC / (DEC) Growth % (in INR Mn) Q4 FY 23 Net Interest Income 5,226 5,249 -23 -1% 5,143 Other Income 1,915 2,175 -260 -12% 1,950 Operating Expenses 2,998 2,953 45 2% 2,923 Gross Profit 4,143 4,471 -328 -7% 4,170 Provisions & Contingencies 1,870 2,220 -350 -16% 1,990 Net Profit 2,273 2,251 22 1% 2,180 Return on Assets 1.40% 1.46% 1.33% Return on Equity 12.10% 13.57% 12.10% Net Interest Margin 3.67% 3.95% 3.65% 16#17FY 23 VS FY 22 PERFORMANCE - A SNAPSHOT FINANCIAL PERFORMANCE CUB CUB (in INR Mn) PARTICULARS FY 23 FY 22 INC/ (DEC) Growth % Net Interest Income 21,628 19,165 2,463 13% Other Income 8,104 7,591 513 7% Operating Expenses 11,552 10,803 749 7% Gross Profit 18,180 15,953 2,227 14% Provisions & Contingencies 8,805 8,351 454 5% Net Profit 9,375 7,602 1,773 23% Return on Assets 1.46% 1.35% Return on Equity 13.42% 12.31% Net Interest Margin 3.89% 3.98% 17#18PROVISIONS & CONTINGENCIES - BREAKUP PARTICULARS (in INR Mn) Q1 FY 24 Q1 FY 23 FY 22-23 FY 21-22 Provision for: - Tax 350 700 2,400 2,250 - Bad Debts 2,400 1,400 6,900 5,535 - Contingency / Covid 19 -650 120 -130 - 80 - Standard Assets -180 -200 550 - Restructuring -50 -120 107 - Others Total -45 -11 1,870 2,220 8,805 8,351 CUB CUB 18#19Q1 FY 24 VS Q1 FY 23 - INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP (in INR Mn) PARTICULARS Q1 FY 24 Q1 FY 23 Growth % PARTICULARS Q1 FY 24 Q1 FY 23 Growth % Interest on Loans 10,089 9,018 12% Int Exp on Deposits 6,841 5,194 32% Interest on Investments 2,214 1,895 17% Other Int Expenses 595 551 8% Other Interest Income 359 81 343% Total Interest 7,436 5,745 Total Interest Income 12,662 10,994 15% 29% Expenses OTHER INCOME BREAKUP OPERATING EXPENSES BREAKUP CUB PARTICULARS Q1 FY 24 Q1 FY 23 Growth % PARTICULARS Q1 FY 24 Q1 FY 23 Growth % CEB & Charges 883 850 4% Employee Cost 1,322 1.327 Treasury Income 405 209 94% Other Inc incl recoveries Other Operating 627 1,116 -44% 1,676 1,626 3% in written off a/cs Expenses Total Other Income 1,915 2,175 -12% Total Operating Expenses 2,998 2,953 2% CUB 19#20FY 23 VS FY 22 - INCOME AND EXPENSES BREAKUP INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP FY FY PARTICULARS Growth % PARTICULARS 2023 2022 (in INR Mn) FY FY Growth % 2023 2022 Interest on Loans 38,009 34,540 Interest on Investments 8,351 6,305 10% 32% Int Exp on Deposits 22,805 21,197 8% Other Int Expenses 2,711 686 295% Other Interest Income 783 203 286% Total Interest Total Interest Income 47,143 41,048 15% 25,515 21,883 17% Expenses OTHER INCOME BREAKUP OPERATING EXPENSES BREAKUP FY FY PARTICULARS Growth % PARTICULARS 2023 2022 FY FY Growth % 2023 2022 CEB & Charges 3,338 2,921 14% Employee Cost 5,304 5,036 5% Treasury Income 1,237 2,461 -50% Other Inc incl recoveries 3,529 2,210 60% in written off a/cs Other Operating Expenses 6,248 5,767 8% Total Other Income 8,104 7,591 7% Total Operating Expenses 11,552 10,803 7% CUB CUB 20 20#21DEPOSITS AND ADVANCES GROWTH - OVER THE YEARS DEPOSITS ADVANCES (in INR Mn) 5,23,979 5,16,548 4,76,897 4,39,708 4,45,370 4,11,560 4,24,048 4,08,325 3,70,206 3,45,762 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 30-JUN-2023 BUSINESS 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 30-JUN-2023 CASA 1,55,294 1,56,569 1,58,931 9,63,687 9,40,596 1,29,814 8,88,457 8,15,579 7,54,087 1,01,970 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 30-JUN-2023 CUB CUB 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 30-JUN-2023 21#22INCOME GROWTH OVER THE YEARS... NET INTEREST INCOME GROWTH OTHER INCOME GROWTH (in INR Mn) 21,628 18,297 19,165 16,752 8,104 7,591 6,799 6,887 |||| ||||. (3 M) 5,226 (3 M) 1,915 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 QI'24 (3 Mon) 31-MAR-2020 31-MAR-2021 CEB GROWTH 3,338 3,076 2,921 2,616* 31-MAR-2020 31-MAR-2021 31-MAR-2022 31-MAR-2023 31-MAR-2022 31-MAR-2023 Q1'24 (3 Mon) NET PROFIT GROWTH 7,602 5,928 4,763 (3 M) 883 QI'24 (3 Mon) 31-MAR-2020 31-MAR-2021 * Decline in CEB income during FY 20-21 mainly due to restriction by Finance Ministry for waiver of service charges at the time of COVID first wave CUB CUB 9,375 (3 M) 2,273 31-MAR-2022 31-MAR-2023 Q1'24 (3 Mon) 22#23KEY BUSINESS INDICATORS PARTICULARS Q1 FY 24 Q1 FY 23 FY 22-23 FY 21-22 Cost of Deposits 5.36% 4.43% 4.66% 4.68% Yield on Advances Yield on Investments Net Interest Margin Cost to Income Cost of Funds 9.53% 9.04% 9.23% 9.36% 6.10% 5.82% 5.89% 5.71% 3.67% 3.95% 3.89% 3.98% 41.98% 39.78% 38.85% 40.37% 4.57% 3.73% 3.97% 3.88% Yield on Funds 7.78% 7.13% 7.34% 7.28% Per Employee Business (in INR Mn) 148.46 167.73 159.76 165.45 Per Employee Profit (in INR Mn) (Ann) 1.44 1.69 1.56 1.42 EPS in INR - FV INR Re.1/- share (Not Ann) 3.08 3.04 12.67 10.29 CUB CUB 23#24KEY BUSINESS RATIOS - YEARLY TRENDS NET INTEREST MARGIN RETURN ON ASSETS 5.00% 1.70% 1.60% 4.50% 1.50% 1.46% 1.40% 1.35% 3.98% 4.00% 1.40% 3.98% 3.89% 4.00% 1.30% 3.67% 1.15% 1.20% 3.50% 1.10% 1.00% 1.00% 3.00% 0.90% 31-MAR-20 31-MAR-21 31-MAR-22 31-MAR-23 30-JUN-23 31-MAR-20 31-MAR-21 31-MAR-22 31-MAR-23 30-JUN-23 COST OF FUNDS 6.50% 10.00% 6.00% 9.50% 5.50% 5.21% 9.00% 8.72% 5.00% 8.50% 4.57% 4.46% 4.50% 8.00% 3.88% 3.97% 4.00% 7.50% 具 3.50% 7.00% 31-MAR-20 31-MAR-21 31-MAR-22 31-MAR-23 30-JUN-23 CUB CUB YIELD ON FUNDS 7.99% 7.78% 7.28% 7.34% 31-MAR-20 31-MAR-21 31-MAR-22 31-MAR-23 30-JUN-23 24#2516 COST OF DEPOSITS & YIELD ON ADVANCES (in %) 14 13.43 13.18 12.83 12.10 12 11.46 10.95 10.76 9.91 9.36 9.53 9.23 10 8.37 8.15 7.62 6.82 6.29 6.17 6.20 6 5.36 5.36 4.68 4.66 CUB 4 2 0 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Jun 23 CUB Spread between cost of deposits and yield on advances of our bank maintained in the last 10 years Yield on Advances Cost of Deposits 25#26EFFICIENCY COST INCOME RATIO (%) CASA RATIO (%) 42.47 41.72 11 40.37 38.85 41.98 29.15 24.97 31-Mar-2020 31-Mar-2021 31-Mar-2022 31-Mar-2023 30-Jun-2023 32.56 29.88 30.77 31-Mar-2020 31-Mar-2021 31-Mar-2022 31-Mar-2023 30-Jun-2023 BUSINESS PER EMPLOYEE (in INR Mn) 165.45 159.76 139.38 131.32 148.46 PROFIT PER EMPLOYEE (in INR Mn) 1.56 1.42 1.44 1.01 0.83 31-Mar-2020 31-Mar-2021 31-Mar-2022 31-Mar-2023 30-Jun-2023 31-Mar-2020 31-Mar-2021 31-Mar-2022 31-Mar-2023 30-Jun-2023 CUB CUB 26#27LOAN BOOK - PRODUCTS COMPOSITION 35% % to Total Advances 1% 64% Bills Purchased & Bills Discounted ку Term Loan Cash Credit & Demand Loan Trading & MSME loans constitute about 48% Diversified credit portfolio reduces credit risk and Lower ticket size backed by adequate collaterals Unsecured Advances aggregate to 1% Loan Book Products Composition Cash Credit & Demand Loan Amount % to Total Advances (INR Mn) Particulars Amount (INR Mn) % to Total Advances 272,609 64% Secured Loans 421,946 99% Term Loan 149,823 35% Bills Purchased & Bills Unsecured Loans 2,102 1% 1,616 1% Discounted Gross Loan Total 424,048 100% Gross Loan Total 424,048 100% CUB CUB 27#28LOAN BOOK SECTORAL DEPLOYMENT - POSITION AS ON 30.06.2023 (in INR Mn) Large Industries Retail traders 6,692 Loans collateralized by Deposits 6,547 NBFC 4,657 7,854 Personal Loans 1% 9,643 2%2%!』 Infrastructure 3,017 Wholesale Traders 2% 15,236 -4% Others 18,693 4% Housing Loan 20,452 5% 43% SECTORAL DEPLOYMENT CRE 7% 30,061 MSME 179,727 JL Non-Agri 9% 42,719 19% Agriculture 78,750 Further to the new criteira for classifying MSMEs vide RBI circular dated 02nd July 2020, we have re-classified the borrowal accounts based on the composite criteria of Investment & Turnover. Due to that roughly about 5% got shifted to Medium Enterprises from Large Industries. CUB CUB 28#29Loan Book - Advances to Major Industries Advances to Major Industries 30th June 2023 TEXTILE a) Cotton b) Other Textiles METALS a) Iron & Steel 9,977(2%) b) Other Metals 8,374(2%) PAPER & PAPER PROD 6,123(1%) FOOD PROCESSING 6,541(1%) CHEMICALS 5,003(1%) RUBBER & PLASTICS 3,827(1%) ENGINEERING 7,108(2%) VEHICLE & AUTOPARTS 1,773(1%) OTHER INDUSTRIES CUB CUB 19,273(5%) 25,103(6%) 14,918(3%) -1% 1% 2% 3% 4% 5% 6% 7% (in INR Mn) Industry Name Amount (in INR Mn) % to Total Advances Advances to Major Industries 108,020 25% All other advances (Agri, Trade, Service, Gold 316,028 75% Loan, etc.) Total Gross Advances 424,048 100% 29#30LOAN BOOK - DRIVER TO GROWTH - Q1 FY 24 CUB CUB (in INR Mn) GOLD LOAN PORTFOLIO Mar-22 Jun-22 Mar-23 Jun-23 - Gold Loan Agriculture 58,182 60,309 69,631 64,774 Gold Loan - Non-Agriculture 31,851 34,635 40,641 43,031 Total Gold Loans 90,033 94,944 110,272 107,805 Gross Advances 411,560 409,341 439,708 424,048 % of Gold Loans to Gross Advances 22% 23% 25% 25% 40641 43031 34635 31851 69631 58182 60309 64774 600 MAR'22 JUN'22 MAR'23 JUN'23 AGRI NON-AGRI Average LTV for Gold Loan at 68% Y-o-Y growth in Gold Loan - 13% (Jun-23 Vs Jun-22) % of Gold loan NPA to JL portfolio 0.20% 30#31ASSET QUALITY GROSS NPA QTM & GROSS NPA % 5.11% 4.70% 4.37% 4.91% 4.09% 20,811 7,785 18,932 19,332 19,202 14,134 NET NPA QTM & NET NPA % (in INR Mn) 11,911 10,752 10,176 10,386 2.97% 2.95% 2.29% 2.36% 2.51% 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 30-Jun-23 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 30-Jun-23 CUB CUB 31#32ASSET QUALITY POSITION - MOVEMENT OVER THE YEARS (In INR MN) NPA Opening balance Additions Recovery made FY MAR-19 FY MAR-20 FY MAR-21 FY MAR-22 FY MAR-23 Q1 FY 24 8,565 9,771 14,134 18,932 19,332 19,202 A 6,322 11,104 11,131 12,757 13,290 3,822 1,980 1,644 1,950 4,424 5,764 992 Upgradations 496 1,358 264 1,638 2,361 221 Net Addition B 3,846 8,102 8,917 6,593 5,165 2,609 Write-off 2,640 3,739 4,119 6,295 5,295 1,000 NPA Closing balance 9,771 14,134 18,932 19,332 19,202 20,811 Technical Write-off(TW) during the period 2,565 3,670 3,961 5,734 3,606 923 Provision made during the period C 2,700 6,310 5,990 5,535 6,900 2,400 T W recovery D 898 1,090 1,033 1,883 2,942 471 Provision made net of TW Recovery E=C-D 1,802 5,220 4,957 3,652 3,958 1,929 Gross Advance F 330,652 345,762 370,205 411,560 439,708 424,048 Additions % of Gross Advance A/F 1.91 3.21 3.01 3.10 3.02 * 0.90 NetAddition % of Gross Advance B/F 1.16 2.34 2.41 1.60 1.17 * 0.62 Credit cost E/F 0.54 1.51 1.34 0.89 0.90 0.45 Gross NPA % 2.95 4.09 5.11 4.70 4.37 4.91 Net NPA % *Not Annualized 1.81 2.29 2.97 2.95 2.36 2.51 CUB CUB 32#33RESTRUCTURED ACCOUNTS Quarter wise balance outstanding in respect of Restructured Standard borrowers Sep-21 Mar-22 Sep-22 Mar-23 (In INR Mn) Jun-23 Type of Restructuring No. of Borrowers Amt No. of Borrowers Amt No. of Borrowers Amt No. of Borrowers Amt No. of Borrowers Amt MSME 333 15,398 395 15,032 319 12,940 182 6,104 191 5,494 Non-MSME 31 220 -- Covid-19 Resolution 1612 6,860 1518 6,812 1453 6,706 1288 6,448 1,159 5,918 Framework Total 1976 22,478 1913 21,844 1772 19,646 1470 Gross Advances 380,122 411,560 427,016 439,708 12,552 1,350 11,412 424,048 % of Rest Standard adv to Gross 5.91% 5.31% 4.60% 2.85% 2.69% advances ▸ The above disclosure is in respect of Restructured Standard Accounts excluding NPA and accounts got closed or upgraded as per extant RBI guidelines ➤ As of 30.06.2023, the total outstanding restructured Standard borrower accounts was 1,350 in numbers and amounting to Rs.11,412 mn. The Bank hold a standard accounts provision wrt Restructured accounts to the tune of Rs.1,197 mn and Rs..294 mn towards erosion on fair value of accounts. CUB CUB 33#34SECURITY RECEIPTS Balance outstanding of Security Receipts wrt NPA sold to ARC Period ended Mar-20 Amount (in INR Mn) 2474 Mar-21 1429 Mar-22 917 Jun-22 819 Sep-22 804 Dec-22 12 Mar-23 12 Jun-23 319 ➤In Q3 FY 23, we we had written off SRs which had crossed the 8 year time limit to the tune of Rs.792 Mn and as a result, the total SRs outstanding as of 31.03.2023 is only Rs. 12 Mn ➤During Q4 FY 23, we have sold accounts to the tune of Rs.860 Mn to ARC. Since the ISIN for those SRs allotted in QI FY 24, the same was accounted in Jun 23 figures. CUB CUB 34#35INVESTMENTS - AT A GLANCE Investments Breakup and Category wise CUB CUB (in INR Mn) Particulars Jun 2023 SLR Securities 148,834 Non-SLR Securities 1,244 Jun 2022 136,619 1,492 Total Investments 150,078 138,111 Yield on Investments 6.10% 5.82% Investments Breakup: - AFS - HTM 35,032(23%) 115,046 (77%) 28,379 (21%) 109,732 (79%) - H FT Total Investments Modified Duration: 150,078 138,111 -AFS - HTM 0.76 1.21 3.72 4.52 - HFT - Overall Portfolio 3.04 3.86 35#36CUB CUB DIGITAL INITIATIVES 36#37Voice Biometric CUB CUB "Your voice is your password" 5G Launched "Voice Biometric Authentication" in CUB All-in-One Mobile Banking App as second-factor authentication in Association with KAIZEN VOIZ simple-seamless secure IDRBT Explore, Enable, Excel Voice Biometric for Net Banking is under development 37#38Strategic Partnerships CUB CUB LAKSON SInch Karix tuskmelon Hunter *experian Sahamati CAAMS </b> gupshup scoreme Perfios Digital Marketing Aggregators GAMOOGA TULICA [IDBI lotach eemudhra Ui Path NeSL KGISL ODYSSEY TECHNOLOGIES LTD Digitization/ Automation / RPA digio Geegality Vanghee Connected Banking Solution Digital Lending Account Opening CIBIL Part of Train EQUIFAX "experian. Payments Bureau KSV Voice Biometric API BANKING Financial inclusion ULTRACASH 123PAY‣ KAGEN SECURE VOGE Correspondent Banking AI/ML ZUCI SYSTEMS Insights. Campaigns Results Digital Insurance Customer Onboarding CRM SUNSMART Enabling Enterenca Credit Card 42CS Customer Onboarding altitude market simplified Conversational Merchants/ Collections Bot EL Atos herbie.al CREDOPAY newgen A ATRANSACTION ANALYSTS Pine Labs 38#39Recent Awards KD TOP MOS INFOS AWARDS NOUR F CISOS & OSEC LEAD THE ECONOME TIMES DATA CON INDIA CITY UGO RANK High Mat Ceus Age ds (-) for Voice Biometric for net banking authentication VOICE BIOMETRIC AUTHENTICATION 12th INFOSEC MAESTROS AWARDS 2023 CIOAXIS | CISOCONNECT High Maturity Data Enterprise @ The Economics Times DataCon Awards 2023 DIGITAL BANKING INNOVATION OF THE YEAR at IBS awards by Synnex Indian Banking Sumit & Awards 2023 C BANKING FRONTIERS BANKING FRONTIERS AWARDS 2023 FINN VITI COB CUB CITY UNION BANK Emerging Asia CA RY BATEK NO CHN L AVE 2 ARTIFICIAL INTELLIGENCE (AI) Express (Bfsi TECHNOLOGY AWARDS @BFSI TECHNOLOGY Awards 2023 By EXPRESS COMPUTERS (Indian Express Group) Best Performance on Risk Management BANIONG 8 July 20 DS Emerging Asia BANK AG Best Performance on Profitability 8th July 2023 EMERGING ASIA BANKING AWARDS Best Bank 39#40CUB CUB BRANCH NETWORK 40 40#41PAN INDIA PRESENCE WITH STRONG FOOTHOLD IN THE SOUTH Jammu and Kashmir BRANCHES AVAILABLE Ladakh MAXIMUM NUMBER OF BRANCHES BRANCHES NOT AVAILABLE Himachal Pradesh Punjab 3 Haryana 2 Uttarakhand Delbi Rajasthan Gujarat 20 Dadra and Nagar Haveli and Daman and Diu CUB CUB Goa 14 STATE TAMILNADU 519 ANDHRAPRADESH No. of % of % of % of Branches Deposits Advances Business 81% 75% 67% Sikkim Arunachal Pradesif 49 2% KARNATAKA 8% 5% 41 6% TELENGANA 5% 5% Assam Nagaland 36 3% Meghalay MAHARASHTRA 6% 4% 20 3% West Bengal GUJARAT 3% 2% Tripura Mizoram Manipur 20 1% KERALA 3% 2% 18 1% OTHERS 2% 2% 49 3% 6% TOTAL 5% 752 Uttar Pradesh Bihar Madhya Pradesh 20 Maharashtra Kamataka Lakshadweep 18 Kerala Created with mapchart.net Chhattisgarh Telangana 36 Andhra Pradesh 49 519 Tamil Nadu harkhand Odisha Puducherry Pusucherry Andaman and Nicobar Islands ర 2800 153 Rural 279 Metro Urban Semiurban 171 149 41#42CUB CUB SHAREHOLDING PATTERN 42#43Corp Bodies, 2.06 A WELL DIVERSIFIED INVESTOR BASE Position as on 30-Jun-2023 QIB, 6.96 NRI, 1.05 Others, 2.60 Major Institutional Shareholders SHAREHOLDERS SMALLCAP WORLD FUND, INC HOLDING% 4.94 HDFC MUTUAL FUND 4.53 SBI NIFTY SAMLL CAP 4.29 TEMPLETON INDIA VALUE FUND 3.31 CANARA ROBECO MUTUAL FUND 2.82 FPI, 25.33 AXIS MUTUAL FUND TRUSTEE LIMITED ICICI PRUDENTIAL 2.44 2.24 HDFC LIFE INSURANCE COMPANY LIMITED 2.04 Public, 32.91 KOTAK EQUITY ARBITRAGE FUND 1.86 UTI SMALL CAP FUND 1.61 LICI ASM NON PAR 1.35 BANK MUSCAT INDIA FUND 1.22 STATE OF WISCONSIN INVESTMENT BOARD 1.18 MF, IFI, Banks, 29.09 KOTAK FUNDS - INDIA MIDCAP FUND 1.03 EDELWEISS NIFTY SMALLCAP 1.00 Well diversified ownership of shareholders around 1,90,000 Approx Long term investors ensuring stability and support to management Limit on FII / FPI ownership increased to 40% CUB CUB 88 Higher Participation from FPI's Head room available for FII FPI... 14.67% 43#44CUB CUB CORPORATE GOVERNANCE 44#45A WELL EXPERIENCED AND STRONG BOARD Shri. M. Narayanan | B.Sc. FCA, Grad CMA, DISA Non-Executive Chairman Shri. M. Narayanan is a practicing Chartered Accountant by profession and has handled Finance, Accounts and Taxation at various levels upto CFO while in service for over 20 years in companies of repute viz. BHEL, Dalmia Cements, Fenner, Ramco Cements and Dishnet etc. He is also an agriculturist and a qualified system Auditor. Shri. Subramaniam Narayanan | PGDM-IIM(A), Chartered Accountant, FCS, CMA Director Shri. Subramaniam Narayanan posses rich experience in the areas of Business Management, Private Equity, Finance, Accountancy, Treasury & Risk Management, Information Technology and Payment & Settlements. He has held the position of CEO in First India Asset Management Company Ltd., and handled treasury services for Bank of America and Abu Dhabi Commercial Bank, UAE. Besides, he has been associated as Director in IT / Fintech Companies of repute for a longtime. Dr.T.S. Sridhar IAS (Retd.) | M.A., Ph.D. Director Dr T.S. Sridhar is a Retd. IAS officer having 35 years of vast experience in all levels of administration and as Principal Secretary, he has expertise and knowledge on Rural economy, farm sector and Industries especially MSME. He was a Director on the Board of NABARD. He hold expertise in Human Resource and Economics as well. Shri. T.K. Ramkumar | B.Com., B.L. Director Shri. T.K. Ramkumar is one of the leading Lawyers in Chennai possessing special knowledge and expertise in Banking law, Company law and Intellectual Property Rights. He is also an active environmentalist. Shri. G. Mahalingam | M.Sc., MBA., CAIIB Director Shri. Gurumoorthy Mahalingam was co-opted as an Additional Director on the Board of the Bank w.e.f 06th July, 2022 to hold office till the ensuing Annual General Meeting. He is a career Regulator in the Financial Sector having worked for 34 years in RBI holding the position of Executive Director at the time of retirement and 5 years in Securities and Exchange Board of India ("SEBI") as Whole Time Board Member. He holds a Masters degree in Statistics and Operations Research from IIT Kanpur and MBA in International Banking from the UK. He has extensive experience in Banking Regulation and Supervision as well as in market regulation and operations. Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB M.D. & C.E.O. Dr. N. Kamakodi is serving as MD & CEO of the Bank from May 2011. He joined the Bank as DGM in the year 2003 and was elevated as GM in 2005 and later as Executive Director in 2006. Shri. V.N. Shivashankar | B.Com,ACS,ACMA, BL Director Shri. V.N. Shiva Shankar is a qualified Lawyer, Company Secretary and Cost Management Accountant with over 25 years of rich experience in Indian Corporate Law. He is also the founder of M/s VNS Legal Corporate Law firm based in Chennai which focuses on legal advisory services on Capital Market Regulation, Takeover Offers, Corporate Litigation, etc. He is a member of the Executive Committee in Southern India Chamber of Commerce. He has expertise in SEBI matters & Risk Management. Shri. K. Vaidyanathan | B.Sc., FCMA, FCS Director Shri K. Vaidyanathan is a Fellow member of the Institute of Cost Management Accountants of India and also the Institute of Company Secretaries of India. He has over 40 years of rich domain experience in Financial and Management Accounting, Corporate Finance, Auditing and Regulatory Compliance. He is a Practicing Company Secretary. He also holds expertise in Compliance and Business management. Prof. V. Kamakoti | B.E, M.S, Ph.D Director Prof. V Kamakoti holds a Master of Science degree in Bachelor of Engineering from the Indian Institute of Technology - Madras and a doctorate of Philosophy in Computer Science and one of the youngest to adorn the post of Professorship in one of the prestigious Institutions of India namely IIT, Madras and presently he is the Director. His forte is Information Technology related Secured Systems Engineering and Security related Software Engineering. Smt. Lalitha Rameswaran | BCom., FCA, DISA Director Smt. Lalitha Rameswaran is a practicing Chartered Accountant by profession and also a qualified systems auditor. She has rich experience in both Direct & Indirect taxation and appeared before various Tribunals representing public sector and private sector banks on tax related matters. CUB CUB 45#46TRANSPARENT 'CORPORATE GOVERNANCE' PRACTICES CUB CUB Board consists of 9 Independent Directors (including 1 Women Director) And MD & CEO Various sub- committees of Board functions to oversee the operations of the Bank Disclosure norms strictly adhered to KYC/AML Norms strictly complied with WE HAVE EMINENT PERSONALITIES ON OUR BOARD WITH DIVERSE PROFESSIONAL EXPERTISE Practicing Chartered Accountant, qualified system Auditor and Agriculturist Practicing Chartered Accountant, qualified system Auditor and Tax expertise Private Equity Fund Manager, Risk Management, IT and Treasury Management Practicing Advocate, Compliance function and Risk Management Retired IAS Officer, Rural Economy, MSME, Business Management, Human resource and Economics. Practicing Company Secretary, Business Management, IT & Compliance Advocate in Banking Law & Environmental Activist Director - IIT Madras and expertise in IT related security systems - Career Regulator in Financial Sector Retired ED of RBI and Whole Time Board Member of SEBI Code of conduct for Directors and Senior Management put in place 46#47CUB CUB Trust and Excellence SINCE 1904 Contact CITY UNION Bank Regd. Office : 149, TSR Big Street, Kumbakonam - 612001, Tamilandu. Admin Office: "Narayana" No.24 B, Gandhi Nagar, Kumbakonam - 612001, Tamil Nadu. Tel: 0435-2402322,2401622,| FAX:0435-2431746 | www.cityunionbank.com INVESTOR CONTACT Name :K.Jayaraman, GM Mob: +91 9344303740 Email: [email protected] Locate us @ O cubltd fcityunionbankltd CUB CUB cityunionbankltd For any queries regarding presentation, please write to [email protected] cubltd