City Union Bank Introduces a Co-Branded Credit Card in Partnership with Chennai Super Kings

City Union Bank (CBU), in partnership with Chennai Super Kings, introduced a co-branded credit card to increase customer loyalty and improve market penetration, especially in Tamil Nadu. 

City Union Bank’s latest product is expected to provide IPL fans a chance to enjoy special perks, including exclusive access to fan meetups and other events. Customers will also earn bonus points upon purchasing CSK merchandise, such as match tickets and T-shirts. 

Objective

In a recent event, CEO and Managing Director of City Union Bank, N Kamakodi, stated, “We found that a significant number of our existing liability customers were taking credit cards from other banks, increasing the risk of losing them. To bridge that gap, we identified credit cards as a missing product in our portfolio.”

As per the Executive Director of City Union Bank, Vijay Anandh, “This card offers more than just financial benefits—it’s a gateway to being a part of the CSK family with access to exclusive rewards and unforgettable experiences.” 

What’s Behind the Rise and Rise of Credit Cards?

The rising appeal for a high standard of living among younger consumers has fuelled the demand for credit cards. Based on industry reports, the number of active credit cards in India has surged by nearly 63% from Janaury 2020 (5.6 crore) to August 2023 (9.13 crore). The exponential rise of the e-commerce sector is also a key force behind credit cards’ popularity. 

City Union Bank Financials as of FY 2023-24

In FY 2023-24, City Union Bank recorded a business of ₹1,02,138 crore, recording a year-on-year growth of 6% from ₹ 96,369 crore. Based on its annual report, the company recorded an 8% year-on-year growth in profits that amounted to ₹1,016 crore. 

The bank recorded a Return on Equity (RoE) of 12.86% in FY 2023-24. It also recorded a Net Interest Margin of 3.65% and a Cost to Income ratio of 47.06%. It furthermore aims to achieve a growth rate of 15%-16% during FY 2025-26 by expanding its existing portfolio retail offerings. 

Conclusion

The bank’s management suggests that it aims to issue 80% of new credit cards to its existing customers and keep its credit card portfolio limited to just 1% of its loan book. 

As the company introduces new financial liability products, it is expected to significantly improve its customer retention rates, and expand its domestic outreach. This is expected to favourably impact their share prices by driving overall business growth. 

As of March 5, 2025, at 3.03 PM, City Union Bank’s share price was trading at ₹152.94. The share price reached an all-day high of ₹154.21, with its all-day low being ₹147.04.

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