City Union Bank to upgrade its digital lending process

Private sector lender City Union Bank is in the final stages of appointing Boston Consulting Group to upgrade its existing digital lending process, with increased focus on retail products such as housing, vehicle and personal loans.

N Kamakodi, MD & CEO of of the bank, had told an earnings call that currently they do not expect any major changes in their overall loan mix but may think about it for 2024-2025 as many of bank peers have shown greater growth in the retail segment.

The major segment for the bank is MSMEs with 43% share and much of its advances come under gold loan, which is presently at 25% of is advances.