City Union Bank to maintain 20-25% CAGR growth for next 5 years

City Union Bank is hopeful of maintaining 20-25 percent CAGR in terms of growth with exception of aberrations in individual years depending on GDP growth of that particular year. This current year the bank expects as if the growth may be close to 15 percent or so, for FY14-15.

Recently, Reserve Bank of India (RBI) allowed foreign institutional investors to purchase up to 35% of the paid-up capital of the bank. The bank has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs).