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City Union Bank Rewards Investors: 1:3 Bonus & ₹2 Dividend!
27 Apr
Summary
- Bank announced a 1:3 bonus share issue and ₹2 dividend per share.
- Net profit climbed 24.9% to ₹360 crore in Q4 FY26.
- Gross NPAs decreased to 1.9%, signaling improved asset quality.
City Union Bank revealed a significant 1:3 bonus issue and recommended a ₹2 dividend per equity share for its shareholders on April 27, 2026. This dual announcement accompanied the bank's fourth-quarter financial results, which showcased robust earnings growth.
The bank's net profit for the quarter ending March 2026 surged by 24.9% year-on-year, reaching ₹360 crore from ₹288 crore in the same period last year. This growth was primarily driven by a substantial 30.9% increase in Net Interest Income (NII), which rose to ₹785.8 crore.
Reflecting improved financial health, the bank's asset quality saw sequential enhancement. Gross non-performing assets (NPAs) reduced to 1.9% from 2.17% in the previous quarter, with Net NPAs also declining to 0.68%. Provisions for the quarter were ₹120 crore.
The proposed bonus issue, offering one additional share for every three held, and the ₹2 dividend, representing a 200% payout for FY26, are pending approval from shareholders at the annual general meeting.
