CUBNSECity Union Bank Limited· BanksHighPositive
Announced Mon, 27 Apr · 16:29 IST

City Union Bank Limited has informed the Exchange that the Board of Directors at its meeting held on April 27, 2026, have considered and approved bonus at the ratio of 1 : 3, i.e 1 Equity Shares for every 3 Equity Shares held.

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AI summary

City Union Bank's Board has approved a bonus issue at 1:3 ratio (1 equity share for every 3 shares held), to be issued from the Securities Premium account. The bank also recommended a dividend of Rs. 2 per share (200% on Re. 1 face value) for FY 2025-26, subject to shareholder approval. For FY 2026, the bank reported net profit of Rs. 1,32,623 lakh, up 18% from Rs. 1,12,363 lakh last year. Total income stood at Rs. 7,90,455 lakh. Asset quality improved significantly with Gross NPA at 1.91% (down from 3.09%) and Net NPA at 0.68% (down from 1.23%). The pre-bonus paid-up capital is Rs. 74.31 crore across 74.31 crore shares, expected to increase to Rs. 99.08 crore post-bonus. The bank has adequate Securities Premium of Rs. 940.37 crore to fund the bonus.

Likely market impact

The bonus issue will increase the number of shares by 33%, diluting per-share metrics like EPS but improving liquidity. The maintained dividend and strong profit growth are positive signals for shareholders.