CUB to expand reach, but will remain a 'cub,' says CEO

City Union Bank will be setting up more branches and ATMs this fiscal.

'We will open 41 branches and install 107 ATMs this fiscal, thereby taking their total numbers to 300 and 287 respectively,' managing director and CEO N.Kamakodi told reporters here, according to Yahoo News.

He said the bank owns all the ATMs and found income from ATM usage charges from customers of other banks steadily going up and the reason for expanding the network.

Speaking about the branch network, Kamakodi said 85 percent of the bank branches are located in southern India, and of these 70 percent in Tamil Nadu. The remaining branches are located in rest of India.

'As to the new branches, 50 percent will be opened in Tamil Nadu, 25 percent in (other parts of) south India, and the balance in other parts of India,' Kamakodi said.

He said the bank is logging at a steady pace and does not want to expand for the sake of having a big balance sheet.

'The `CUB' can remain a cub, keeping shareholders happy and need not become a lion,' he added.

The bank closed first quarter with a net profit of Rs.58.51 crore and a total income of Rs.417.02 crore up from Rs.44.37 crore and

Rs.299.34 crore respectively logged during corresponding period of the previous year.