City Union Bank Bonus Issue: 1 free share on 3 shares, stock gave 23% return, know how the shareholders became rich?

Business Desk – City Union Bank Bonus Issue: City Union Bank has announced to give bonus shares to its shareholders. For every 3 shares, 1 new share will be given free by the bank. The record date for this has been fixed on June 12. Only those investors whose names are in the register of members or depository records of the company till this date will be able to avail the benefit of this bonus issue. This decision was taken in April, when the bank released its March 2026 quarter results.

Bonus issue came again after 8 years

City Union Bank has come up with a bonus issue after almost 8 years. Earlier, the bank had issued bonus shares in 2017 and 2018, at that time investors got 1 bonus share for every 10 shares. At present the face value of the bank’s shares is Rs 1 per share.

Status of share price and returns

City Union Bank shares on BSE are currently trading at around Rs 244.70. The market cap of the bank is more than Rs 18,100 crore. This stock is part of BSE 500 index. In the last one year, this stock has given a return of about 23%, while in the last 3 years it has increased by about 95%. Its high in 52 weeks has been Rs 319.95 and low Rs 184.

Bank will also give dividend

The bank is also going to give a dividend of Rs 2 per share for the financial year 2025-26. However, the record date for this has not been announced yet. In the last financial year 2025 also, the bank had given a similar dividend of Rs 2 per share.

Brokerage Opinion and Target

In April, ICICI Securities had given a buy rating on this stock and a target price of Rs 325. Whereas MK Global Financial has also set a target of Rs 350 with Buy rating.

Strong results for March quarter

In the March 2026 quarter, the bank’s net profit increased by 25% year-on-year to Rs 360 crore, which was Rs 288 crore last year. During this period, the net interest income (NII) of the bank also increased by 31% to Rs 786 crore.

Total income was recorded at Rs 1,855.62 crore. The bank’s net profit for the full fiscal year 2026 increased by 18% to Rs 1,326 crore, while NII increased by 22% to Rs 2,830 crore.