City Union Bank shares fell 23% to ₹197.40 on Friday after the 1:3 bonus issue became effective. However, this decline was purely technical due to the bonus share adjustment rather than a change in the bank's underlying business performance. The shares opened sharply lower than Thursday's closing price of ₹256.80 per share, but in reality, the stock gained more than 8% to trade at ₹208.50 after adjusting for the bonus issue, as seen at 10.20 am. As per LiveMint, the private lender had fixed June 12, 2026 as both the record date and ex-date for its bonus issue, with eligible shareholders receiving one additional fully paid-up equity share for every three shares held as of the record date. Investors needed to own City Union Bank shares by the close of trading on June 11 to qualify for the bonus allotment, as the ex-date and record date fell on the same day.
City Union Bank has set June 12 as the record date for its 1:3 bonus issue, making June 11 the final day for investors to purchase shares and qualify for the corporate action. According to reports from LiveMint, under SEBI's T+1 settlement cycle, shares purchased today will be credited to investors' demat accounts by the record date, ensuring eligibility for the bonus shares distribution. The board of directors approved the bonus issue on May 25, 2026, with the record date set for June 12, 2026, subject to shareholder approval. The bonus shares will be issued using nearly ₹25 crore from the lender's securities premium account, whose balance stood at more than ₹940 crore on March 31, 2026. Following the issue, shareholders' total holdings will increase by 33.33%, while the stock price adjusts to account for the larger number of shares in circulation, maintaining the overall value of an investor's holding broadly unchanged. This latest issue is significant because it marks the bank's first bonus issue in eight years, since a 1:10 bonus issue in 2018.
City Union Bank reported robust financial results for FY26, with net profit increasing 18% to ₹1,326 crore from ₹1,124 crore in the previous year. As per NDTV Profit, net interest income rose 30.9% to ₹786 crore from ₹600 crore year-on-year, while net interest income for FY26 increased 22% to ₹2,830 crore from ₹2,316 crore in FY25. The bank's gross NPA ratio improved to 1.91% in FY26 from 3.09% a year earlier, while net NPA ratio declined to 0.68% from 1.25%. Total deposits climbed 23% year-on-year to ₹78,308 crore, and advances increased 26% to ₹66,699 crore. Return on equity improved to 13.35% from 12.63% in FY25, while net interest margin stood at 3.74% for FY26. In the latest quarter, the bank reported a 25% year-on-year rise in net profit to ₹359.56 crore for Q4 FY26, up from ₹287.96 crore in the corresponding quarter of the previous financial year, with net interest income (NII) increasing around 31% YoY to ₹785.83 crore during the quarter.
City Union Bank share price closed 1.02% lower at ₹253.3 per share on BSE with a market capitalisation of ₹18,822.48 crore. The stock touched an intraday high of ₹262.15 per share and an intraday low of ₹250.55 per share during Wednesday's trading session. The stock has declined close to 12.3% since the beginning of 2026 but has delivered 23% return in one year. Alongside the bonus issue, the bank has proposed a dividend of ₹2 per equity share for FY26, which remains subject to shareholder approval at the upcoming annual general meeting. The bank's return on equity (ROE) stands at 14.94%. This marks the first bonus issue announced by the lender in eight years, since a 1:10 bonus issue in 2018. A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. As per LiveMint, the banking stock has gained more than 9% over the past week and nearly 10% in the last month, reflecting strong recent momentum, while the stock has generated substantial returns of 37% over the past year, 115% over three years and 58% over five years.
City Union Bank has increased the interest rates on its US dollar-denominated Foreign Currency Non-Resident (Bank) deposits to 7.10% per annum for tenures ranging from 3 to 5 years. The revised rate came into effect on June 10, 2026, and applies specifically to Non-Resident Indian (NRI) customers. According to the bank, FCNR(B) deposits allow both principal and interest to be maintained in foreign currency and are fully repatriable. The deposits are available across flexible tenure options and are designed for NRIs seeking to hold savings in foreign currency. This enhancement in deposit rates demonstrates the bank's focus on attracting NRI customers and optimizing its foreign currency deposit portfolio.
