Key facts
- June 11 is the last day to purchase City Union Bank shares to qualify for the 1:3 bonus issue.
- The record date for the bonus issue has been set for June 12.
- Shareholders will receive one bonus share for every three shares held.
- The bonus shares will be funded from the bank's securities premium account.
- This is the bank's first bonus issue in eight years.
June 11 marks the final opportunity for investors to acquire shares of City Union Bank to be eligible for its announced 1:3 bonus issue. The bank has designated June 12 as the record date, the crucial date for determining which shareholders will receive the bonus shares.
Under the Securities and Exchange Board of India's (SEBI) T+1 settlement cycle, shares purchased on June 11 will be credited to investors' demat accounts by the record date of June 12. This ensures that these shareholders are officially registered and thus qualify to receive one bonus equity share for every three shares they hold.
City Union Bank had announced the 1:3 bonus issue in April, a corporate action that will see the bank distribute free shares from its reserves. The issuance will utilize approximately Rs 25 crore from the lender's securities premium account, which held a balance exceeding Rs 940 crore as of March 31, 2026. This move is the bank's first bonus issue in eight years, following a 1:10 bonus distribution in 2018.
Bonus issues are generally viewed as indicators of a company's financial strength and growth potential. While they increase the total number of outstanding shares, they do not alter the company's overall market capitalization. However, they can enhance share liquidity and affordability for potential investors.
In terms of stock performance, City Union Bank shares have seen a 2% increase over the past week, though they have declined 3% in the last month and over 12% year-to-date in 2026. Longer-term returns show a 23% gain in one year, 104% over three years, and 52% over five years.
The bank recently reported a 25% year-on-year increase in net profit for the fourth quarter of fiscal year 2026, reaching Rs 359.56 crore, up from Rs 287.96 crore in the same period of the previous fiscal year. Net interest income also rose by approximately 31% year-on-year to Rs 785.83 crore during the quarter.