City Union Bank Q4 FY26: Net profit rises 25% to Rs 359 crore, approves 1:3 bonus issue and Rs 2 dividend

City Union Bank delivered a solid fourth quarter for FY26, reporting double-digit growth in both revenue and profit on a year-on-year basis, while also announcing a bonus issue and dividend — capping what appears to have been a steady year for the mid-sized private lender.

Net profit for Q4 FY26 came in at Rs 359 crore, up 24.7% from Rs 288 crore in the corresponding quarter last year. Revenue grew 21% to Rs 1,855 crore from Rs 1,533 crore, reflecting steady credit expansion and improved operating performance through the quarter.

On asset quality, the bank posted meaningful sequential improvement across both key metrics. Gross non-performing asset ratio declined to 1.91% from 2.17% in the previous quarter, while net NPA ratio fell to 0.68% from 0.78% — movements that point to disciplined underwriting and effective recovery efforts holding firm even as the broader credit cycle matures.

The board approved a bonus issue in the ratio of 1:3, meaning shareholders will receive one additional share for every three shares held. The bank also recommended a dividend of Rs 2 per equity share for the year.

City Union Bank has built its reputation on conservative, relationship-driven lending — primarily in Tamil Nadu and surrounding geographies — and the Q4 numbers reflect that model continuing to deliver consistent returns without sharp swings in credit costs or provisioning.

The combination of improving NPA ratios, steady topline growth and shareholder-friendly capital actions positions the bank well as it enters FY27, even as the sector broadly navigates margin pressure from deposit cost stickiness and evolving regulatory requirements.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making investment decisions.