City Union Bank Share Price Hits ₹195, Soars 10% in May

Market Performance

City Union Bank's share price continued its strong momentum on May 14, climbing 2% intraday to reach ₹195, its highest level since December 2022. This marks the third consecutive day of gains and a significant rally that has brought the stock closer to its record high of ₹249.35 set in January 2020.

• 10% gain in May 2025
• 12.33% rise in April 2025
• 6.35% gain in March 2025

The stock's sustained rally reflects improving investor confidence and bullish sentiment around the bank's financial recovery.

Main News

City Union Bank's recent surge is backed by its return to a growth trajectory in the March quarter of FY25, primarily driven by its digital transformation efforts. These strategic moves are helping the bank realign operations and enhance efficiency, boosting market sentiment.

The steady uptrend aligns with the bank's renewed business focus, positioning it closer to its historical highs. The City Union Bank share price is now one of the best performers in the mid-cap banking segment for the ongoing quarter.

Company Financials (Q4 FY25)

Revenue

• Net Interest Income (NII): ₹600 crore (↑10% YoY)

EBITDA

• Pre-Provision Operating Profit: ₹441 crore (↑25.3% YoY)

EBITDA Margins

• Margins saw improvement due to a better loan mix and operational efficiencies.

Net Profits

• Net Profit: ₹288 crore (↑13% YoY)

Other Highlights

• Non-Interest Income: ₹251 crore (↑43% YoY), led by higher fee income from insurance and processing charges.
• Gross NPA: Improved to 3.09% from 3.36% QoQ due to higher write-offs.
• Credit Cost: Stable at 60 bps, down from 61 bps in the previous quarter.
• Net Interest Margins (NIMs): Slightly improved by two basis points.

Company Details

City Union Bank continues to focus on strengthening its digital infrastructure and maintaining asset quality. The management has expressed confidence in:

• Reducing slippages to ₹650–700 crore in FY26 (vs. ₹815 crore in FY25)
• Sustaining Return on Assets (RoA) at 1.5%
• Ensuring healthy recoveries and controlled operational costs

Summary

The City Union Bank share price has seen a remarkable 10% jump in May, fueled by strong quarterly results and digital-led recovery strategies. With asset quality improving and profits rising, the stock is rapidly approaching its historical peak.

As the bank continues to build on its momentum in FY26, investors are closely watching whether it can maintain this upward trajectory and deliver consistent returns.