City Union Bank Ltd logo

City Union Bank Ltd

CUB NSE

City Union Bank Limited is a banking company. The Bank's segments include Treasury, Corporate and Wholesale Banking, Retail Banking and Other Banking Operations.(Source : Company Web-site )

AI Verdict: HOLD Confidence: 5%

City Union Bank trades at a reasonable PE of 14.8x with consistent 13% ROE over 3, 5, and 10 years, but low sales growth of 10.7% over 5 years and significant contingent liabilities of Rs.10,792 Cr warrant caution. The stock's 37% 1-year CAGR has priced in near-term positives, making risk-reward balanced at current levels.

Key Fundamentals

SmallcapPrivate BankBanks
Market Cap
₹20,295 Cr
Volatility
Moderate
P/E Ratio
14.82
EBITDA
₹0.00 Cr
Return on Equity
12.09%
Debt to Equity
0
Book Value
₹106.63
EPS
₹14.22
52W High
₹243.08
52W Low
₹144.71

Technical Indicators

Key Insights

Strengths

1
  • Company's working capital requirements have reduced from 180 days to 138 days

Weaknesses

6
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 10.7% over past five years.
  • Company has a low return on equity of 12.9% over last 3 years.
  • Contingent liabilities of Rs.10,792 Cr.
  • Company might be capitalizing the interest cost
  • Dividend payout has been low at 11.8% of profits over last 3 years

Growth Rate

Revenue Growth
2.04% ↘
Net Income Growth
18.03% ↗
Cash Flow Change
158.67% ↗
ROE
-1.82% ↘
ROCE
2.91% ↗
EBITDA Margin (Avg.)
-20.72% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

City Union Bank trades at a reasonable PE of 14.8x with consistent 13% ROE over 3, 5, and 10 years, but low sales growth of 10.7% over 5 years and significant contingent liabilities of Rs.10,792 Cr warrant caution. The stock's 37% 1-year CAGR has priced in near-term positives, making risk-reward balanced at current levels.

Bull Case 8
  • Strong analyst consensus with 87.5% buy ratings (21 out of 24 analysts recommending buy)
  • Attractive valuation at PE of 14.8x, below the banking sector average of 18-20x for mid-sized banks
  • Consistent ROE of 13% maintained across 3-year, 5-year, and 10-year periods showing earnings stability
  • Accelerating revenue growth with TTM sales growth of 18% vs 5-year CAGR of only 11%
  • Compounded profit growth of 18% TTM indicates improving profitability trajectory
  • Working capital days reduced from 180 days to 138 days, showing improved operational efficiency
  • Reasonable Price-to-Book of 1.86x for a bank delivering consistent 13% ROE
  • Stock CAGR of 37% over 1 year reflects strong momentum and re-rating potential
Bear Case 8
  • Low interest coverage ratio raises concerns about debt servicing ability in a rising rate environment
  • Contingent liabilities of Rs.10,792 Cr are significant relative to market cap of Rs.19,720 Cr (55% of market cap)
  • Poor sales growth of only 10.7% over past 5 years suggests limited franchise expansion
  • Low return on equity of 12.9% over last 3 years, below the 15%+ benchmark for quality banks
  • Dividend payout of only 11.8% of profits over last 3 years with a yield of just 1.01% offers poor income return
  • Possible capitalization of interest costs may be flattering reported profitability
  • 10-year stock CAGR of only 11% indicates prolonged periods of underperformance historically
  • 5-year stock CAGR of just 10% versus 5-year profit CAGR of 17% suggests persistent valuation compression risk

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 2
  • Stock down 12.3% YTD Jun 11

    City Union Bank shares have declined 12.3% since the beginning of 2026, closing at ₹253.3 per share with market cap of ₹18,822 crore.

  • ₹500 crore QIP dilution planned Jun 24

    Board proposed ₹500 crore capital raise via QIP, requiring shareholder approval at AGM on August 14, 2026, which will dilute existing holdings.

Positives 5
  • 1:3 bonus issue allotted Jun 15

    City Union Bank allotted 24.77 crore bonus shares in a 1:3 ratio, the first bonus issue in eight years since 2018. Shares listed on June 16, 2026.

  • 200% dividend approved for FY26 Jun 24

    Board approved 200% dividend of ₹2 per share for FY26, with record date July 31 and payment on or after August 14, 2026.

  • Highest 555-day FD at 7.25% Jun 15

    City Union Bank offers the highest 555-day FD rate among peers at 7.25% for general customers and 7.50% for senior citizens, potentially aiding deposit mobilization.

  • Key appointments approved overwhelmingly May 31

    Shareholders approved R Mohan as Independent Director with 92% votes in favour and bonus issue with 97% approval via postal ballot.

  • 23% one-year stock return Jun 11

    Despite YTD weakness, the stock has delivered 23% returns over one year with ROE at 14.94%.

Neutral 3
  • Trading window closed from Jul 1 Jun 20

    Trading window closed from July 1, 2026, until Q1FY27 results are declared; designated persons cannot trade CUB equity during this period.

  • ₹36.81 crore NSE block trade Jun 10

    Block trade of approximately 14.54 lakh shares executed at ₹253.20 per share on NSE, totaling ₹36.81 crore, likely institutional activity.

  • Singapore investor meet participation Jun 4

    City Union Bank participated in India Corporate Day Singapore 2026 on June 9, organized by Kotak Institutional Equities.

TL;DR: City Union Bank is executing a series of shareholder-friendly actions — a 1:3 bonus issue (first in 8 years), 200% dividend, and competitive deposit rates — signaling confidence in its financial health with 14.94% ROE. The proposed ₹500 crore QIP introduces near-term dilution risk, and the stock remains weak YTD (-12.3%) despite strong one-year returns. The trend is cautiously improving as capital actions and governance moves suggest management is positioning for growth, but QIP execution and Q1FY27 results will be key catalysts to watch.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
1,228
1,266
1,304
1,326
1,374
1,389
1,434
1,479
1,533
1,605
1,653
1,756
1,856
Expenses
451
452
390
391
402
403
451
455
489
488
512
580
617
Financing Profit
63
71
149
125
145
142
132
133
112
137
154
172
169
Fin. Margin %
5%
6%
11%
9%
11%
10%
9%
9%
7%
9%
9%
10%
9%
Other Income
195
191
182
193
175
192
226
228
251
244
259
245
290
Interest
714
744
766
810
828
843
851
891
932
980
987
1,004
1,070
Depreciation
0
0
0
0
0
0
0
0
0
0
0
0
0
PBT
258
262
331
318
320
334
358
361
363
381
414
417
460
Tax %
16%
13%
15%
20%
20%
21%
20%
21%
21%
20%
21%
20%
22%
Net Profit
218
227
281
253
255
264
285
286
288
306
329
332
360
EPS in Rs
2.21
2.3
2.84
2.56
2.58
2.68
2.89
2.89
2.91
3.1
3.33
3.36
3.63
Gross NPA %
4.37%
4.91%
4.66%
4.47%
3.99%
3.88%
3.54%
3.36%
3.09%
2.99%
2.42%
2.17%
1.91%
Net NPA %
2.36%
2.51%
2.34%
2.19%
1.97%
1.87%
1.62%
1.42%
1.25%
1.2%
0.9%
0.78%
0.68%
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
2,699
2,944
3,174
3,402
3,767
4,169
4,135
4,105
4,714
5,271
5,834
6,870
Expenses
655
736
937
1,120
1,140
1,690
1,738
1,605
1,723
1,559
1,716
2,197
Financing Profit
153
245
262
310
472
-15
92
311
440
564
600
632
Fin. Margin %
6%
8%
8%
9%
13%
0%
2%
8%
9%
11%
10%
9%
Other Income
415
410
484
532
514
680
689
759
810
742
898
1,039
Interest
1,891
1,963
1,975
1,972
2,156
2,493
2,305
2,188
2,552
3,147
3,518
4,040
Depreciation
47
52
53
52
62
79
87
85
73
75
82
0
PBT
521
603
693
790
925
586
693
985
1,177
1,231
1,417
1,671
Tax %
24%
26%
27%
25%
26%
19%
14%
23%
20%
17%
21%
21%
Net Profit
395
445
503
592
683
476
593
760
937
1,016
1,124
1,326
EPS in Rs
4.1
4.61
5.18
6.07
6.97
4.85
6.02
7.71
9.5
10.28
11.37
13.39
Div. Payout %
17%
16%
4%
3%
5%
8%
6%
10%
8%
11%
13%
11%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
60
60
60
66
73
74
74
74
74
74
74
74
Reserves
2,636
2,992
3,510
4,097
4,767
5,222
5,769
6,512
7,383
8,327
9,393
10,491
Borrowing
129
665
531
1,736
481
2,032
1,346
5,312
4,688
4,724
2,169
5,327
Deposits
24,115
27,158
30,116
32,853
38,448
40,832
44,537
47,690
52,398
55,657
63,526
78,308
Other Liabilities
932
929
1,054
1,186
1,489
1,573
1,586
1,944
2,051
2,044
2,461
2,825
Total Liabilities
27,871
31,804
35,271
39,937
45,259
49,734
53,312
61,531
66,595
70,826
77,623
97,024
Fixed Assets
210
218
215
223
250
245
233
215
239
270
322
469
CWIP
0
0
0
0
0
0
0
0
0
0
0
0
Investments
5,871
6,826
7,031
7,879
7,712
9,117
9,436
12,221
14,333
15,664
17,336
18,987
Other Assets
21,790
24,760
28,024
31,835
37,297
40,372
43,643
49,095
52,023
54,891
59,965
77,569
Total Assets
27,871
31,804
35,271
39,937
45,259
49,734
53,312
61,531
66,595
70,826
77,623
97,024
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
131
248
284
-183
419
1,836
922
1,166
724
436
1,128
802
Investing
-64
-60
-50
-61
-87
-60
-38
-63
-72
-106
-120
-208
Financing
291
-75
-4
1
-5
-18
10
-31
-690
-36
-2,662
3,042
Net Cash Flow
357
113
229
-243
327
1,758
893
1,072
-38
294
-1,653
3,637
Free Cash Flow
66
188
233
-244
332
1,777
884
1,103
652
330
1,009
595
CFO/OP
14
10
17
-3
23
73
41
47
31
16
32
22
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
16%
15%
15%
15%
15%
9%
11%
12%
13%
13%
13%
13%

Shareholding Pattern

As of Mar 2026
DIIs 40.74%
Public 27.57%
FIIs 23.37%
Others 8.33%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
FIIs
0.02%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
26.60%
26.96%
26.44%
26.01%
27.44%
28.03%
27.38%
25.96%
23.49%
23.37%
DIIs
38.50%
41.12%
41.43%
43.26%
40.57%
40.99%
35.82%
37.73%
36.19%
31.09%
31.23%
32.40%
29.51%
32.57%
33.57%
33.58%
33.07%
35.23%
36.75%
40.24%
40.74%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
32.65%
31.72%
32.07%
31.05%
31.30%
30.98%
29.65%
29.43%
29.65%
32.91%
34.21%
32.18%
34.41%
32.26%
31.65%
30.28%
30.21%
28.85%
28.65%
27.61%
27.57%
Others
28.83%
27.15%
26.50%
25.69%
28.13%
28.03%
34.53%
32.84%
34.15%
36.00%
34.56%
8.83%
9.13%
8.73%
8.78%
8.70%
8.68%
8.54%
8.64%
8.65%
8.33%
No. of Shareholders
1,41,556
1,39,597
1,44,606
1,48,214
1,53,331
1,47,999
1,35,282
1,45,083
1,48,027
1,84,778
2,08,812
2,16,019
2,48,815
2,29,943
2,34,222
2,28,001
2,23,585
2,10,298
2,09,805
2,15,430
2,07,495

Documents

1
Concall - Feb 2018 Feb 2018
2
Concall - Aug 2018 Aug 2018
3
Concall - Nov 2018 Nov 2018
4
Concall - Jan 2019 Jan 2019
5
Concall - Feb 2020 Feb 2020

Frequently Asked Questions about City Union Bank Ltd

What does City Union Bank Ltd do?
City Union Bank Limited is a banking company. The Bank's segments include Treasury, Corporate and Wholesale Banking, Retail Banking and Other Banking Operations.(Source : Company Web-site )
Where is City Union Bank Ltd (CUB) listed?
City Union Bank Ltd is listed on the Indian stock exchanges. It is listed on NSE: CUB and BSE: 532210. You can view its live share price, financials, and ratios on Tapetide.
Which sector does City Union Bank Ltd belong to?
City Union Bank Ltd operates in the Financial Services sector within the Banks industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of City Union Bank Ltd?
City Union Bank Ltd has a market capitalisation of approximately ₹20295.10 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of City Union Bank Ltd?
The Price-to-Earnings (PE) ratio of City Union Bank Ltd is 14.82. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of City Union Bank Ltd?
Over the past 52 weeks, City Union Bank Ltd has traded between a low of ₹144.71 and a high of ₹243.08. This range helps investors understand the stock's price volatility and recent trading levels.
Does City Union Bank Ltd pay dividends?
Yes, City Union Bank Ltd has a dividend yield of 0.98%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of City Union Bank Ltd?
City Union Bank Ltd has a Return on Equity (ROE) of 12.09%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research City Union Bank Ltd on Tapetide?
On Tapetide, you can view City Union Bank Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

City Union Bank Limited is a banking company. The Bank's segments include Treasury, Corporate and Wholesale Banking, Retail Banking and Other Banking Operations.(Source : Company Web-site )

Website cityunionbank.com
CEO Dr. N. V. Narayanan Kamakodi B.Tech., CAIIB, M.B.A., Ph.D.
Employees 7,605
Listed 1998-08-25
Face Value ₹ 1
Issued Size 74,20,98,317

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