| Fund Raise Amount | ₹500 CrVia QIP Route |
|---|---|
| Market Cap | ₹19,647 CrMid-cap Bank |
| Net Profit TTM | ₹1,326 Cr18.03% YoY Growth |
| Institutional Holding | 64.1%FII & MF Total |
| Deal value | ₹500 Cr |
| Share of market cap | 2.5% |
Key highlights
- Proposed capital raising of ₹500 crore including premium via QIP mechanism
- Shareholder approval for the fundraise to be sought at the upcoming AGM on August 14, 2026
- Recommended final dividend of 200%, amounting to ₹2 per equity share
- Record date for dividend eligibility fixed for July 31, 2026
- Dividend payment scheduled to commence on or after August 14, 2026
Qualified Institutional Placement Details
City Union Bank intends to bolster its Tier-1 capital through a Qualified Institutional Placement (QIP) of up to ₹500 crore, including premium. The board has classified this as an enabling resolution to be placed before the members at the 122nd Annual General Meeting. This capital raising route is frequently utilized by Indian private lenders to bring in sophisticated institutional investors while minimizing the administrative delays associated with public offerings.
The bank will determine the final issue price following the receipt of shareholder consent and according to prevailing SEBI pricing formulas.
Business Overview and Market Presence
Headquartered in Kumbakonam, City Union Bank operates as a prominent private sector lender with a historical focus on the MSME and SME sectors. It maintains a strong regional footprint in South India while expanding its digital banking capabilities. The bank currently manages a market capitalization of approximately ₹19,647 crore and is categorized as a mid-range performer on the momentum index.
Institutional confidence remains high, with mutual funds holding a 31.82% stake and foreign institutional investors maintaining a 23.37% interest in the bank's equity.
Financial Performance and Context
- The bank reported a trailing twelve-month revenue of ₹6,869.76 crore as of March 2026.
- Quarterly net profit growth was recorded at 24.86% year-on-year, reaching ₹359.56 crore.
- Operating profit margins remain stable at 31.23% for the latest quarterly reporting period.
- The bank's return on equity stands at 12.55%, reflecting efficient capital utilization in a competitive sector.
- Price-to-Earnings (PE) ratio is currently 14.81, closely aligned with the industry average of 14.55.
Shareholder Returns and AGM Schedule
Alongside the fund-raising plans, the bank has rewarded its investors with a 200% dividend declaration, providing ₹2 per equity share on a face value of ₹1. The record date for this payout is set for July 31, 2026, ensuring that eligible shareholders receive the dividend within the statutory time period following the AGM. The Annual General Meeting scheduled for August 14, 2026, will serve as the primary forum for ratifying both the dividend distribution and the capital raising enabling resolution, marking a critical date for stakeholders.
| Share price | ₹198.3 |
|---|---|
| Market capitalisation | ₹19,647.31 Cr |
| Revenue (annual) | ₹6,869.76 Cr |
| Net profit (annual) | ₹1,326.23 Cr |
| Revenue (latest quarter) | ₹1,855.62 Cr+5.69% vs previous quarter |
| Net profit (latest quarter) | ₹359.56 Cr+8.25% vs previous quarter |
| P/E (TTM) | 14.81×Sector 23.46× |
| Promoter holding | 0%0.00% QoQ |
| FII holding | 23.37%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by City Union Bank Ltd announcing board approval for a ₹500 crore QIP and dividend recommendation. Market figures from a third-party data provider.
