Shares of City Union Bank will be in focus this week as the lender’s bonus issue record date approaches. The bank has fixed June 12, 2026, as the record date for its 1:3 bonus share issue.
The stock ended Tuesday’s session at Rs 256.95, up 4.03 per cent, after touching an intraday high of Rs 258.10.
Record date on June 12
City Union Bank has announced bonus shares in the ratio of 1:3. This means shareholders will receive one additional fully paid-up equity share for every three shares held as of the record date.
Since the ex-date and record date both fall on June 12, investors must own the shares by the end of trading on June 11 to be eligible for the bonus allotment.
Following the issue, the total number of shares held by investors will increase by 33.33 per cent. However, the stock price is expected to adjust proportionately on the ex-date, meaning the overall value of an investor’s holding remains broadly unchanged immediately after the bonus issue.
Dividend of Rs 2 per share also announced
Along with the bonus issue, City Union Bank has recommended a dividend of Rs 2 per equity share for FY26. The dividend proposal is subject to shareholder approval at the bank’s upcoming annual general meeting.
Strong March quarter performance
City Union Bank reported a net profit of Rs 360 crore for the January-March quarter, up 24.9 per cent from Rs 288 crore in the same period last year.
Net interest income (NII), a key measure of a bank’s earnings from lending activities, rose 30.9 per cent year-on-year to Rs 786 crore from Rs 600 crore.
The lender also reported an improvement in asset quality during the quarter. Gross non-performing assets (GNPA) stood at 1.9 per cent compared with 2.2 per cent in the previous quarter. In absolute terms, gross NPAs declined to Rs 1,273.08 crore from Rs 1,320 crore.
Net NPAs improved to 0.68 per cent from 0.78 per cent in the preceding quarter, while the net NPA amount fell to Rs 449.42 crore from Rs 469.34 crore.
FY26 financial highlights
Net interest income (NII) rose 22 per cent year-on-year to Rs 2,830 crore in FY26 from Rs 2,316 crore in FY25. In the March quarter, NII climbed 31 per cent to Rs 786 crore from Rs 600 crore a year earlier.
Non-interest income increased 16 per cent to Rs 1,039 crore in FY26 from Rs 898 crore in the previous year. For the fourth quarter, non-interest income stood at Rs 290 crore, up from Rs 251 crore. The growth was driven largely by loan processing charges and insurance commission income.
Operating profit rose 20 per cent to Rs 2,014 crore in FY26 compared with Rs 1,679 crore in FY25. During the March quarter, gross profit increased 31 per cent to Rs 580 crore from Rs 441 crore.
The bank’s net profit (PAT) grew 18 per cent to Rs 1,326 crore in FY26 from Rs 1,124 crore a year ago. Fourth-quarter PAT jumped 25 per cent to Rs 360 crore, marking the highest quarterly profit reported by the bank.
On the business front, total deposits increased 23 per cent year-on-year to Rs 78,308 crore, while total advances rose 26 per cent to Rs 66,699 crore. The CASA ratio stood at 28 per cent, and the average credit-deposit ratio was 85 per cent.
Asset quality continued to improve, with the gross NPA ratio declining to 1.91 per cent in FY26 from 3.09 per cent a year earlier. The net NPA ratio fell to 0.68 per cent from 1.25 per cent. The bank said both GNPA and NNPA have declined sequentially for the past eight quarters.
Other key metrics also remained stable. Net interest margin (NIM) stood at 3.74 per cent for FY26, while return on assets (RoA) came in at 1.56 per cent. Return on equity (RoE) improved to 13.35 per cent from 12.63 per cent in FY25.
