City Union Bank Limited

City Union Bank Limited (CUB) is a mid-cap Financial Services company valued at ₹22,535 crore operating in Private Sector Bank on the NSE and BSE.

Recent price move

City Union Bank Limited last traded at ₹226.95, modestly up 1.31% on the day.

Recent developments

On 2026-06-24, the company announced plans to raise up to ₹500 crore through a qualified institutional placement, pending approval at the August 14, 2026 AGM. This move aims to strengthen the bank's financial position.

Financial performance

The company's annual net profit rose 18.0% to ₹1,326 crore, while the latest quarter's net profit increased 25.0% to ₹383 crore compared to the same quarter a year earlier. Profit margins remain stable at 19.3%, but return on capital employed is low at 5.9%, suggesting limited efficiency in using capital.

Valuation multiples

The stock trades at 16.9 times earnings, broadly in line with the Financial Services median of 19.3, 2.12 times book value. It yields 0.9%.

Things to watch

The stock is 7.6% below its 52-week high, and foreign institutional holding fell 4.72 percentage points in the quarter. Domestic institutional holding increased, but the company's return on capital employed remains low at 5.9%, indicating limited returns for investors.

Where it stands

The company's net profit has grown steadily, with a 25.0% rise in the latest quarter. However, return on capital employed remains low, and the stock is trading below its 52-week high. The recent capital raising plan may signal a need for additional funds, but the company's financial efficiency is a key concern.

Summarised by DocStoX's model on 2026-10-03 from company filings, exchange data and news. This is a factual summary, not a rating or a recommendation. Informational only, not investment advice. Consult a SEBI-registered adviser before investing.