Synopsis: City Union Bank Limited announced a 1:3 bonus share issue, with June 12, 2026, fixed as the record date for shareholder eligibility determination.
This Private Sector Bank Stock, engaged in providing banking and financial services, including loans, deposits, digital banking, treasury, and retail banking solutions across India, jumped 2.52 percent after the company’s board set a record date for a 1:3 bonus issue.
With a market capitalization of Rs. 19,004.54 crores, the share of City Union Bank Limited has reached an intraday high of Rs. 256 per equity share, rising nearly 2.52 percent from its previous day’s close price of Rs. 249.70. Since then, the stock has retreated and is currently trading at Rs. 255.75 per equity share.
Reason Behind the Surge
City Union Bank Limited’s Board of Directors has fixed Friday, 12th June 2026, as the Record Date for determining the eligibility of shareholders for the allotment of Bonus Equity Shares.
The board has decided to issue bonus shares at a ratio of 1:3, meaning that shareholders will receive one new fully paid-up equity share of Re. 1 each for every three existing fully paid-up equity shares they hold.
For example, if a shareholder owns 3,000 shares of City Union Bank Limited, they will receive 1,000 bonus shares, bringing their total holding to 4,000 shares after the 1:3 bonus issue.
Business Highlights
As of March 31, 2026, City Union Bank Limited reported total deposits of Rs. 78,308 crore and advances of Rs. 66,699 crore. The bank maintained a healthy net interest margin of 3.74 percent and a low net NPA of 0.68 percent, showing strong asset quality and stable financial performance.
City Union Bank Limited has a wide network across India with 949 branches and 1,764 ATMs. It also has 8,894 employees supporting its banking operations. The efficiency ratio stood at 47.93 percent, reflecting effective cost management and operational performance.
Company Overview
City Union Bank Limited (CUB) is an Indian private-sector commercial bank headquartered in Kumbakonam, Tamil Nadu. Established in 1904, it has evolved from a regional bank into a nationwide institution emphasizing technology-driven services and support for micro, small, and medium enterprises (MSMEs).
Recent Quarter Results
Coming into financial highlights, City Union Bank Limited’s Net Interest Income has increased from Rs. 600.32 crore in Q4 FY25 to Rs. 785.84 crore in Q4 FY26, which has grown by 30.90 percent. The net profit has also grown by 24.86 percent from Rs. 287.96 crore in Q4 FY25 to Rs. 359.56 crore in Q4 FY26. City Union Bank Limited’s revenue and net profit have grown at a CAGR of 9.11 percent and 17.47 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 6.74 percent and 13.2 percent, respectively. City Union Bank Limited has an earnings per share (EPS) of Rs. 17.8, and its debt-to-equity ratio is 7.92x.
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