India’s 120-Year-Old Private Bank Hikes FD Rates; Earn Up To 7.25% On 400 Days Tenure

With its headquarters located in Kumbakonam, Tamil Nadu, City Union Bank is a private sector bank in India that was founded on October 31, 1904. On June 8th, the bank issued a modification on its fixed deposit of less than Rs. 2 Cr. The bank is now providing a maximum return of 7.25% for the general public and 7.75% for senior citizens on a 400-day tenure, in response to a rise in interest rates.

City Union Bank FD Rates

The bank offers an interest rate of 5.00% on fixed deposits maturing in 7 to 14 days, while City Union Bank offers an interest rate of 5.50% on deposits maturing in 15 to 45 days. For deposits with terms ranging from 46 to 90 days, City Union Bank is giving an interest rate of 5.75%; for deposits with terms ranging from 91 to 180 days, the interest rate is 6.00%. The interest rate on deposits maturing from 181 days to 270 days will now be 6.25%, while the interest rate on deposits maturing in 271 days to 364 days will now be 6.50%.

On fixed deposits maturing in 365 days to 399 days, the bank is offering an interest rate of 7.00% and on those maturing in 400 days, City Union Bank is offering an interest rate of 7.25%. City Union Bank is offering an interest rate of 6.50% on a fixed deposit tenure of 401 days to 3 years and 6.25% on above 3 years upto 10 years tenure. Tax-saver fixed deposits maturing in 5 years at City Union Bank will now offer an interest rate of 7.10%.

The appointment of Shri R. Vijay Anandh as the bank's whole-time director and executive director for a three-year term beginning on May 28th was approved by the RBI last month.

As compared to Rs. 514 cr and Rs. 2,163 cr, respectively, in Q4 FY 23 and FY23, the bank's Net Interest Income (NII) for Q4 FY24 and FY24 was Rs. 547 cr and Rs. 2,123 cr, respectively. The bank's non-interest income for Q4 of FY 24 was Rs. 175 cr, down from Rs. 195 cr in Q4 of FY 23, and for FY 24, it was Rs. 742 cr, down from Rs. 810 cr in FY 23.

PAT jumped by 17% to Rs. 255 cr in Q4 FY24 from Rs. 218 cr in Q4 FY23. Gross non-performing assets (NPA) as of March 31, 2024, dropped from 4.37% in Q4 of FY 23 to 3.99%. Net NPA dropped to Rs. 899 Cr, while the percentage of non performing assets (NPAs) dropped from 2.36% to 1.99% within the same time frame. In Q4 FY 24, the bank's return on equity was 12.39%; in FY 24, it was 12.86%, and in Q4 FY 24, its return on assets was 1.48%; in FY 24, it was 1.52%.