City Union Bank Share: Bank Declares 200% Dividend Following Strong FY25 Performance and 10% Profit Surge
City Union Bank (CUB) has proposed a final dividend of ₹2 per equity share for the fiscal year 2024–25, reflecting a 200% return on its ₹1 face value shares. This significant dividend hike demonstrates the bank’s strong financial health and its commitment to rewarding shareholders.
The proposed payout marks a 33% increase from the ₹1.50 per City Union Bank share (150%) dividend issued in the previous year. The bank’s Board of Directors approved this decision at its meeting on May 2, and it awaits final approval at the forthcoming Annual General Meeting.
Steady Earnings Growth Supports Higher Dividend Payout
For the financial year ending March 31, 2025, CUB reported a net profit of ₹1,12,363 lakhs—up 10.63% from ₹1,01,573 lakhs in FY24. This increase was driven by solid growth in the bank’s lending portfolio, stronger fee income, and sound asset quality management.
The bank also posted encouraging results in the final quarter of FY25, with Q4 net profit rising to ₹30,814 lakhs from ₹27,951 lakhs in Q3—a sequential growth of 10.25%. This performance highlights the bank’s efficient cost controls and operational resilience, even amid macroeconomic challenges.
Income Expansion and Core Banking Strength
City Union Bank’s total income climbed to ₹5,77,853 lakhs in FY25, a 14.61% rise from ₹5,04,258 lakhs in FY24. This uptick was powered by higher interest earnings on advances and solid gains from treasury and ancillary operations.
Core banking indicators also remained healthy. The bank preserved strong net interest margins, supported by efficient deposit pricing and strategic lending to the retail and SME sectors.
Improvement in Asset Quality
The bank succeeded in tightening asset quality controls. The Gross Non-Performing Asset (GNPA) ratio declined to 3.75% from 4.09% a year earlier. Similarly, the Net NPA ratio improved to 2.12%, down from 2.36%. These improvements reflect effective credit monitoring and loan recovery mechanisms.
Strong Capital Base Ensures Growth Readiness
As of March 31, 2025, the bank’s capital adequacy ratio (CAR), calculated under Basel III norms, stood at 18.68%. This robust capital buffer ensures the bank’s capacity to support future expansion while managing potential risks—even after considering the dividend distribution.
Investor Sentiment and Strategic Priorities
The announcement of a higher dividend signals CUB’s dedication to creating shareholder value and reinforces investor confidence. In a climate where consistent returns are prized, such financial discipline stands out.
With a steady performance track record and a focus on prudent financial practices, City Union Bank continues to position itself as a strong candidate for long-term investment. The management has reiterated its plans to invest in digital initiatives, broaden branch presence, and enhance customer service—ensuring future-readiness without compromising on returns.
Outlook for City Union Bank Share
As the banking landscape evolves with regulatory changes and digital transformation, City Union Bank’s emphasis on transparency, sustained profitability, and shareholder engagement puts it in a favorable position. The solid FY25 results and generous dividend reinforce its commitment to growth backed by sound fundamentals.
Click Here To Read Official File of City Union Bank Results
City Union Bank Share Price
At last check, City Union Bank shares were trading at ₹173.99 on the NSE, down 1.45% from the previous close of ₹176.56. The stock opened at ₹175.35 and has moved within a daily range of ₹172.01 to ₹179.00. City Union Bank Shares are trading near its 52 wee highs of 188. City Union Bank Shares touched its 52 week low of 130 in June 2024. City Union Bank shares trading currently with the gain of almost 33% from its 52 week lows.
| Particulars | FY 2023–24 | FY 2024–25 | Change (%) |
|---|---|---|---|
| Dividend per Share (₹) | ₹1.50 | ₹2.00 | +33.33% |
| Dividend (% on Face Value) | 150% | 200% | +33.33% |
| Net Profit (₹ in lakhs) | 1,01,573 | 1,12,363 | +10.63% |
| Total Income (₹ in lakhs) | 5,04,258 | 5,77,853 | +14.61% |
| Q4 Net Profit (₹ in lakhs) | 27,951 | 30,814 | +10.25% (QoQ) |
| Gross NPA (%) | 4.09% | 3.75% | Improved |
| Net NPA (%) | 2.36% | 2.12% | Improved |
| Capital Adequacy Ratio (CAR) | Not specified | 18.68% | — |
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