City Union Bank is a mid-sized private sector bank. The bank reported subdued performance in FY21 due to the pandemic. Loan growth was muted and mainly driven by the government ECLGS scheme and gold loans which increased by 97 percent during the year.

While asset quality deteriorated sharply this wasn’t a surprise as management had earlier indicated elevated slippages and high restructuring in FY21.

Despite not so impressive performance investor should still consider City Union Bank and that is because the bank’s long-term mystery is marked by stable profitability with an average return on asset of around 1.5 percent in the last 10 years.

In the special segment ‘Moneycontrol Pro Ideas For Profit’, moneycontrol.com’s Neha Dave gets more details on the company’s performance going forward.

Watch the accompanying video for more

(Edited by : Abhishek Jha)