Markets were down today, it is an indefinite market as Elections are round the corner, and results of companies are mixed. Markets, dont like uncertainty that is why markets are wobbly. I have observed CUB (City Union Bank.) since 17th of November 2009 which was quoting inr 25/, which has closed at inr 184.90 today.An appreciation of 639.6% for 10 years ie an appreciation of 63.96% P.A.
This Bank is doing well and has very few NPA’s compare to ICICI Bank, and other big banks. For Eg.. Yes Bank was quoting inr 404 this year at a high. It dropped down to inr 147/ today.I.e a 63.61% drop in one year. The Yes Bank, has had numerous problems like a family feud and the resignation of the Chairman Rana Kapur from the Bank. ICICI Bank also has a numerous problems, like charges against Chanda Kochar in a wrong loan case of her with Videocon Ind.
CUB or City Union Bank, is a 104 year old bank based out of Kombakonam in Tamil Nadu. The Bank has very less NPA and is managing very well. It, is a very low profile bank whose customers are, small businesses, Textile mill owners. The word of mouth is the main advertising module for the bank.N.Kamakodi, is the CEO of the bank who states that, we don’t sprint but run a marathon. CUB has run a marathon for many years, is is a very good stock to be purchased and a steady stock giving good returns.
