City Union Bank Gains Over 3% as Private Sector Lender Reports Q4 PAT Growth of 25% YoY, Announces Dividend and 1:3 Bonus Issue

The Indian equity markets are trading in the green on Monday, with the Nifty Bank rising 0.31 per cent during the session. Amid positive movement in select banking counters, City Union Bank was trading at Rs 271.20, up 3.31 per cent, following the announcement of its Q4FY26 and FY26 financial results along with Dividend and Bonus share declaration.

City Union Bank Q4FY26 Results: Quarterly Performance

City Union Bank reported total income of Rs 2,146.09 crore in Q4FY26, compared to Rs 1,783.94 crore in Q4FY25, registering a growth of 20.30 per cent YoY. On a sequential basis, total income also improved from Rs 2,001.02 crore in Q3FY26.

Operating profit before provisions and contingencies stood at Rs 579.56 crore, compared to Rs 440.96 crore in the corresponding quarter last year, reflecting a growth of 31.43 per cent YoY.

Profit before Tax came in at Rs 459.56 crore, up 26.62 per cent YoY from Rs 362.96 crore. Net profit after tax stood at Rs 359.56 crore, compared to Rs 287.96 crore in Q4FY25, marking a growth of 24.86 per cent YoY.

City Union Bank FY26 Annual Performance

For the full financial year FY26, the bank reported total income of Rs 7,904.55 crore, compared to Rs 6,732.10 crore in FY25, registering a growth of 17.42 per cent YoY.

Operating profit stood at Rs 2,014.23 crore, compared to Rs 1,678.63 crore, reflecting a rise of 20.00 per cent YoY. Profit before tax came in at Rs 1,671.23 crore, while net profit after tax increased to Rs 1,326.23 crore from Rs 1,123.63 crore, marking a growth of 18.03 per cent YoY.

Asset Quality and Key Banking Metrics

The bank reported further improvement in asset quality during FY26. Gross NPA declined to 1.91 per cent from 3.09 per cent in FY25, while Net NPA improved to 0.68 per cent from 1.24 per cent.

Return on Assets stood at 1.56 per cent, while Capital Adequacy Ratio remained strong at 23.75 per cent, highlighting a healthy and well-capitalised balance sheet. Net worth increased to Rs 10,458 crore as of March 2026.

Deposits rose to Rs 78,308 crore from Rs 63,526 crore, while advances grew to Rs 65,875 crore from Rs 52,081 crore on a year-on-year basis, indicating healthy business expansion.

Dividend and Bonus Issue Announcement

The Board of Directors has recommended a dividend of Rs 2 per equity share, representing 200 per cent on the face value of Re 1, subject to shareholder approval at the upcoming Annual General Meeting.

In a major shareholder-friendly move, the bank also approved the issuance of bonus shares in the ratio of 1:3, meaning shareholders will receive 1 bonus equity share for every 3 shares held as on the record date to be announced later. The bonus shares will be issued out of the bank’s securities premium account.

About City Union Bank

City Union Bank is one of India’s established old-generation private sector banks with a strong presence in retail banking, MSME lending, agri finance, corporate banking and digital financial services. Headquartered in Kumbakonam, Tamil Nadu, the bank has built a wide branch network with a strong franchise in South India and expanding national reach.

The bank continues to focus on secured lending, customer-centric banking, technology-led services, and steady balance sheet growth, making it one of the consistent performers among mid-sized private sector banks.

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Disclaimer: This article is for informational purposes only and not investment advice.