Hello. TITO was a nickname of former Yugoslavian president and dictator JOSIP BROZ TITO. He led a communist partisan movement in Yugoslavia during ww2 and was very popular at the time. Patch you have is a late war theater made insignia from some local partisan fighter from Croatian or Bosnian part of the country because of Latin letters in use. The patch DEFINITELY ISN'T A STANDARD YUGOSLAV ARMY PATCH and it could be it was worn either by political commissar or common soldier. Although it is a very nice and rare thing to find even in former Yugoslavia.
I hope I was of any help.
