She was speaking at the 120th year celebrations of Kumbakonam (Tamil Nadu)-headquartered old private sector lender City Union Bank, which was presided over by the President of India, Droupadi Murmu and attended by Governor of Tamil Nadu R. N. Ravi, Tamil Nadu Minister for Social Welfare and Women Empowerment P. Geetha Jeevan, industrialists and others.
“As we are advancing towards Viksit Bharat 2047, all banks are called upon not only to expand credit but also to provide momentum for infrastructure development, ensure timely and need-based funding for MSMEs, and bring the unbanked into the fold of formal banking. Meeting diverse requirements, where the support of banking channels is vital, is key,” she pointed out.
The guiding principles for this transformation must be trust, technology and transparency. “Trust earned through consistent service, ethical conduct and sound governance is very important for banks to earn and retain. Technology should be leveraged not only for efficiency but also for inclusion and customer empowerment,” she added.
The Finance Minister highlighted that the Prime Minister had recently announced a task force for next-generation reforms, with a mandate to simplify regulations, lower compliance costs, and build a more enabling ecosystem for start-ups, MSMEs and entrepreneurs. Complementing this, the planned roll-out of next-generation GST reforms, with the GST Council meeting scheduled for Wednesday and Thursday, will put the economy on a path of greater openness and transparency, further easing compliance for small businesses, she said.
Stating that private sector banks are vital partners in India’s nation-building efforts and have a critical role to play, Sitharaman lauded City Union Bank as one of the exemplary banks, with a record of 120 years of service without a day’s break and without a year of posting a loss, surviving through the British period and the era of Indian independence.
City Union Bank’s sustained focus on MSME lending, retail and wholesale trade, and agriculture has empowered entrepreneurs, small businesses and farmers—truly living up to the principle that finance must support growth at the grassroots, she said.
In her address, President Murmu said City Union Bank has made remarkable progress in the field of financial inclusion. Out of its total network of branches across the country, over 50% are located in rural and semi-urban areas. The bank has also opened more than 2 lakh accounts under Central government initiatives.
While payment banks, digital wallets and banking correspondents have taken financial services to the doorsteps of remote villages, several challenges remain in terms of digital literacy, internet access and financial awareness. “The empowerment of farmers and the rural economy should be a priority of our banking sector. By extending timely and affordable credit, offering financial literacy, and supporting agritech initiatives, banks can help make agriculture sustainable and profitable,” she added.
N Kamakodi, MD & CEO of City Union Bank, said that when CUB was established in 1904 to support local agriculture and commerce of the Cauvery delta region, almost the entire banking system in the country was under colonial control. “Twenty responsible citizens of the town of Kumbakonam assembled together, identified the need to channelize domestic savings into productive economic activities at affordable interest rates, and conceptualized the birth of the bank,” he said.
With these strong Swadeshi roots, the bank grew steadily from strength to strength, seeing multiple world wars, wars with enemy countries, and multiple economic cycles. It has now completed 120 straight years of service to society, with an unbroken track record of profitability and dividend declaration. It has also adopted the latest technology to serve the common man and has grown into an institution with 887 branches covering 22 states and union territories, serving over 40 lakh customers and managing ₹1,20,000 crore of total business.
At the event, a book titled “Bank on the Banks of Cauvery” on the 120-year legacy of CUB was released by the Finance Minister.
