City Union Bank Declares 1:3 Bonus Issue Alongside ₹2 Dividend City Union Bank has set June 12, 2026, as the record date for its 1:3 bonus issue and announced a ₹2 per share dividend following robust fourth-quarter earnings. Private sector lender City Union Bank has unveiled a dual capital reward for its equity holders. The bank decided to issue one free bonus share for every three existing shares held by investors. Complementing the stock allotment, the board also recommended a cash dividend of ₹2 per share for the financial year 2025-26, delivering substantial value to retail and institutional shareholders alike. June 12 Set as Record Date for Bonus Allotment The bank management fixed June 12, 2026, as the official record date to establish investor eligibility for the bonus shares. Consequently, market participants must hold the bank shares in their demat accounts by this designated cutoff date to receive the entitlement. Eligible shareholders will receive one complimentary share credited for every block of three shares currently in their possession without incurring any out-of-pocket cost. Bonus Distribution Arrives After an Eight-Year Gap This capital restructuring marks a major event for the lender, arriving after a gap of 8 years without bonus issuances. The bank had previously distributed bonus units back in 2017 and 2018, though that historic distribution occurred at a narrower ratio of 1 bonus share for every 10 shares held. The current 3:1 ratio represents a significantly more generous allocation for long-term investors. On the BSE trading floor, shares of City Union Bank recently hovered at ₹244.70, elevating the institution's overall market capitalization past the ₹18,100 crore milestone. Over the trailing twelve months, the counter registered a price appreciation of around 23%. Over a three-year horizon, the stock delivered a 95% return, effectively doubling the invested principal for early buyers. Dividend Payout of ₹2 Awaits Shareholder Consent Alongside the equity distribution, the bank will disburse a cash dividend of ₹2 per equity share for fiscal year 2025-26. The explicit record date for this dividend entitlement remains to be notified separately. The dividend funds will be credited directly to the registered bank accounts of qualifying shareholders following formal ratification at the upcoming Annual General Meeting (AGM). Net Profit Climbs 25% to ₹360 Crore in Fourth Quarter The corporate rewards are anchored by robust operational metrics reported during the fourth quarter ending March 2026. During the January-March 2026 quarter, City Union Bank logged a net profit growth of 25% year-on-year, touching ₹360 crore compared with ₹288 crore earned during the corresponding period of the previous fiscal year. Core profitability showed equivalent resilience as net interest income (NII) surged 31% to touch ₹786 crore. Brokerages Maintain Buying Recommendation With ₹350 Target Encouraged by solid operating metrics and clean margins, leading equities research firms issued positive outlooks on the counter. Brokerage house ICICI Securities advised clients to accumulate City Union Bank shares, establishing a price target of ₹325. Meanwhile, Emkay Global expressed even stronger conviction regarding the lender's growth trajectory, projecting an upside target of ₹350 per share. What this means for you Existing shareholders of City Union Bank will receive direct gains through fresh equity allocation and dividend income. • Shareholding Boost: Investors will receive 1 free equity share for every 3 shares they hold. Those maintaining shares in their demat accounts until June 12, 2026, will see their total quantity expand by one-third without spending extra money. • Cash Flow from Dividend: Shareholders will receive ₹2 in cash for each equity unit they own. Once formally cleared at the upcoming AGM, the funds will transfer directly into registered bank accounts. • Market Liquidity: Expanding the overall equity base lowers the per-share barrier and enhances trading volumes. This makes buying and selling shares significantly easier for everyday retail participants. • Brokerage Valuations: Target prices of ₹325 from ICICI Securities and ₹350 from Emkay Global indicate upside potential compared to the current trading level of ₹244.70. Investors can evaluate their holdings accordingly. Why this happened City Union Bank announced the dual corporate action to reward shareholders following solid operational gains and core earnings expansion. • Sharp Profit Growth: For the January-March 2026 quarter, the lender reported a 25% jump in net profit to ₹360 crore compared with ₹288 crore a year earlier. This earnings expansion provided the board with room to distribute surplus equity. • Surge in Core Interest Income: The bank recorded a 31% year-on-year surge in net interest income, which climbed to ₹786 crore. This consistent operational performance reinforced the balance sheet foundation. • Eight-Year Hiatus: The lender had not issued bonus shares since its 10:1 allotments in 2017 and 2018. Returning with an enhanced 3:1 ratio reflects improved capital confidence after an eight-year interval. • Subsequent Approvals: While the bonus shares have a fixed record date of June 12, 2026, the cash payout awaits final shareholder ratification at the AGM. The distribution of dividend money will proceed right after that meeting. Questions & Answers 1. What is the bonus share ratio announced by City Union Bank? The bank declared a 3:1 bonus ratio, meaning shareholders receive 1 free share for every 3 shares they hold. 2. What is the record date to become eligible for the bonus shares? The management has fixed June 12, 2026, as the official record date for the bonus issue. 3. How much cash dividend has been recommended? City Union Bank proposed a cash dividend of ₹2 per equity share for the financial year 2025-26. 4. What was the net profit earned by the bank in the fourth quarter? During the January-March 2026 quarter, the bank reported a 25% rise in net profit to ₹360 crore. 5. What target prices have brokerage firms set for the stock? ICICI Securities assigned a target price of ₹325, while Emkay Global established a target of ₹350. https://trendkia.com/en/money/city-union-bank-ke-niveshakon-ko-milega-1-3-bonasa-aura-2-ka-dividenda-51653 TrendKia — Har trend, sabse pehle.