City Union Bank announced significant shareholder returns alongside its March quarter results on April 27, as reported by CNBC TV18. The bank has proposed a bonus issue in the ratio of 1:3, meaning shareholders will receive one additional equity share for every three shares held, subject to approval at the upcoming annual general meeting. Additionally, the bank has recommended a dividend of ₹2 per equity share of face value Re 1 each, translating to a 200% payout for FY26.
The bank delivered robust quarterly results with net profit rising 24.9% year-on-year to ₹360 crore from ₹288 crore in the previous year, according to CNBC TV18. Net interest income (NII) increased 30.9% to ₹785.8 crore, compared with ₹600.3 crore a year ago, supported by strong growth in core income. The steady performance reflects the bank's continued operational strength and revenue generation capabilities.
Asset quality showed marked improvement during the quarter, as reported by CNBC TV18. Gross non-performing assets (NPA) declined to 1.9% from 2.17% in the previous quarter, indicating better credit management. Net NPA also eased to 0.68% from 0.78%, demonstrating stable credit performance and improved risk management practices.
Provisions for the quarter stood at ₹120 crore, higher than ₹96 crore in the December quarter and ₹78 crore a year ago, reflecting a prudent approach towards balance sheet strengthening, according to CNBC TV18. Ahead of the earnings announcement, shares of the bank closed at ₹272.50 on the NSE, up 3.81% on Monday, indicating positive market sentiment towards the results and shareholder returns announcement.
