Expect significant growth from Insurance income this year: City Union Bank MD

City Union Bank, a private sector bank based in Tamil Nadu, anticipates significant growth in income from its insurance sector this financial year, according to Chairman and Managing Director and CEO N Kamakodi. The bank, which has recently onboarded six insurance companies covering life, general, and non-life sectors, saw its insurance income double from Rs 27 crore in FY'23 to Rs 55 crore in FY'24. Kamakodi expressed confidence in the continued growth of this income stream during an earnings call with analysts. \r

Reflecting on the bank's progress, he mentioned that City Union Bank had opened its 800th branch in Ayodhya last year and planned to expand by adding 50-75 more branches this year. Additionally, the bank's digital lending initiative, aimed at serving micro, small, and medium enterprises (MSMEs), is nearing completion and is expected to launch before mid-June. This digital lending process is projected to enhance the bank's credit growth, helping it reach pre-Covid levels in slippages and recovery. \r

Overall, Kamakodi highlighted a positive outlook for City Union Bank's future growth, driven by both its expanding insurance income and the forthcoming digital lending platform.