City Union Bank approves ₹500 crore QIP fundraise plan; AGM on August 14

Private sector lender City Union Bank Ltd on Tuesday (June 23) said its board of directors has approved a proposal to raise up to ₹500 crore through a qualified institutional placement (QIP), including premium, subject to shareholder approval.The QIP proposal will be placed as an enabling resolution in the notice for the upcoming annual general meeting (AGM). The bank also fixed the date of its ensuing AGM for Friday, August 14, 2026.

City Union Bank approved a dividend of 200% for FY26, amounting to ₹2 per equity share of face value ₹1 each. The dividend will be paid on or after August 14, 2026, within the statutory time period.ALSO READ | City Union Bank targets mid-teen loan growth, stays cautious on unsecured lending

Fourth Quarter Results

Net profit for the quarter rose 24.9% year-on-year to ₹360 crore from ₹288 crore, supported by strong growth in core income. Net interest income (NII) increased 30.9% to ₹785.8 crore, compared with ₹600.3 crore a year ago.Asset quality improved sequentially, with gross non-performing assets (NPA) declining to 1.9% from 2.17% in the previous quarter. Net NPA also eased to 0.68% from 0.78%, indicating stable credit performance.

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.

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The bank also announced a bonus issue and a dividend. 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.

In addition, it has recommended a dividend of ₹2 per equity share of face value Re 1 each, translating to a 200% payout for FY26.

Shares of City Union Bank Ltd ended at ₹198.25, up by ₹0.40, or 0.20%, on the BSE.

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