City Union Bank Q4 FY26: Profit up 25%, bonus 1:3

Q4 FY26 results signal a steady finish

City Union Bank ended Q4 FY26 with double-digit year-on-year growth in both revenue and profit, alongside announcements on shareholder rewards through a bonus issue and dividend. The mid-sized private lender reported net profit of ₹359 crore for the quarter, up 24.7% from ₹288 crore in the corresponding period last year. Revenue rose 21% year-on-year to ₹1,855 crore from ₹1,533 crore. The quarter also showed sequential improvement in key asset quality ratios, indicating tighter control on slippages and recovery efforts. Along with the earnings performance, the bank’s board approved a bonus issue and recommended a cash dividend for the year. The updates collectively point to a consistent operating trend rather than a one-off spike in performance.

Profit rises 24.7% YoY to ₹359 crore

City Union Bank’s Q4 FY26 net profit came in at ₹359 crore, compared with ₹288 crore in Q4 FY25. The bank’s year-on-year profit growth of 24.7% stands out in a period where credit cycles across the sector have been maturing and underwriting discipline is increasingly tested. The quarterly improvement was positioned as part of a steady year for the lender. The article data attributes the performance to “steady credit expansion and improved operating performance through the quarter.” The numbers also align with the bank’s stated reputation for conservative, relationship-driven lending.

Revenue up 21% to ₹1,855 crore

Revenue for Q4 FY26 increased to ₹1,855 crore from ₹1,533 crore a year earlier, translating into 21% year-on-year growth. While the information provided does not break revenue into interest and non-interest components for this quarter, it links the higher revenue to steady credit growth and improved operating execution. For investors tracking mid-sized private banks, revenue momentum is often watched alongside asset quality and provisioning stability, particularly when loan growth is supportive but funding costs can shift quickly.

Asset quality improves sequentially in Q4

The bank reported sequential improvement across both gross and net non-performing asset ratios during the quarter. Gross NPA declined to 1.91% from 2.17% in the previous quarter. Net NPA fell to 0.68% from 0.78% over the same period. The movements were described as a sign of disciplined underwriting and effective recoveries, holding firm even as the broader credit environment matures. The data shared does not include provisioning ratios or credit cost numbers for Q4, so the interpretation here is limited to the reported GNPA and NNPA trajectory.

Bonus issue approved: 1 share for every 3 held

City Union Bank’s board approved a bonus issue in the ratio of 1:3. This means shareholders will receive one additional share for every three shares held, subject to shareholder approval as indicated in the board meeting agenda disclosure. Bonus issues typically increase the number of outstanding shares while keeping overall shareholder value unchanged at the time of issuance, barring market movements. In this case, the announcement comes alongside profit growth and improving asset quality, which often forms the context in which boards consider capital actions.

Dividend recommended at ₹2 per equity share

The bank also recommended a dividend of ₹2 per equity share for the year. The disclosure around the board meeting noted that dividend and bonus shares, if any, would be considered and approved, subject to shareholder approval. The provided information does not specify the record date or payout date. Dividend recommendations in banking are usually evaluated against profitability, capital adequacy needs, and growth plans, but no such additional metrics were provided in the text.

Earnings call and board meeting scheduled for April 27, 2026

City Union Bank said it will participate in a “Q4 & FY 2026 Earnings Call” organised by Ambit Capital on Monday, April 27, 2026. The bank communicated this to the National Stock Exchange of India and BSE on April 22, 2026, citing compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. Separately, the bank indicated that a board meeting was scheduled on April 27, 2026, to consider and approve audited standalone financial results for Q4 and FY 2026 and consider dividend and bonus shares, subject to shareholder approval. The same note mentioned that the trading window would reopen on April 30, 2026.

Business model context: conservative lending in core geographies

The bank’s operating style was described as conservative and relationship-driven, primarily focused on Tamil Nadu and surrounding geographies. The Q4 performance was positioned as an extension of that model, delivering consistent returns without sharp swings in credit costs or provisioning. While the dataset does not provide detailed segmental growth or geographic mix numbers for Q4, the stated model helps explain why markets often track City Union Bank closely for asset quality stability during shifting cycles.

Peer context: Union Bank of India’s Q4 FY26 snapshot

In the same news flow, Union Bank of India reported Q4 FY26 net profit of ₹5,315.76 crore, up 3.03% year-on-year from ₹4,984.92 crore. Its net interest income (NII) fell 1.13% year-on-year to ₹9,406 crore from ₹9,514 crore. Net interest margin (NIM) contracted to 2.64% from 2.97% in the year-ago period. Asset quality improved, with GNPA at 2.82% versus 3.06% in the previous quarter and 3.60% in Q4 FY25, while NNPA improved to 0.48% from 0.51% (previous quarter) and 0.63% (year-ago). Union Bank’s board recommended a dividend of ₹5 per equity share (face value ₹10), subject to statutory and shareholder approvals at the ensuing 24th AGM.

Key numbers table

Market data points cited in the disclosures

The information provided also referenced City Union Bank’s price as ₹271.21, up ₹8.70 (+3.31%). Separately, a data snippet stated the share price as ₹262.51 as on April 24, 2026. Since these figures come from different referenced snapshots, they should be read as point-in-time indicators rather than a single continuous price series. The disclosures also highlighted the bank’s SEBI-compliant communication process for the earnings call and the trading window reopening date.

Why these updates matter for investors

For City Union Bank, the combination of faster profit growth, revenue expansion, and sequential improvement in GNPA and NNPA provides a clean quarterly picture on the core variables investors track in lenders. The bonus issue and dividend recommendation add a shareholder-return element, but they also come with process steps including shareholder approvals. For the broader banking landscape, the juxtaposition with Union Bank of India’s quarter shows how outcomes can diverge, with some lenders showing margin pressure even as asset quality improves. The next formal checkpoint for City Union Bank is the April 27 earnings call and the audited results approval process, which typically clarifies performance drivers and management priorities.

Conclusion

City Union Bank’s Q4 FY26 results showed ₹359 crore profit and ₹1,855 crore revenue, alongside sequential improvement in GNPA to 1.91% and NNPA to 0.68%. The bank also announced a 1:3 bonus issue and recommended a ₹2 per share dividend for the year. The lender is scheduled to participate in Ambit Capital’s earnings call on April 27, 2026, the same day as its board meeting to approve audited standalone results and consider capital actions, with the trading window reopening on April 30, 2026.