City Union Bank Share Price Hits 4-Year High, Gains 40% in Just 4 Months

Market Performance

• On Tuesday, June 10, City Union Bank's share price surged 2% during intraday trade.
• It reached its highest level since March 2020, moving closer to its all-time high of ₹249.35 set in January 2020.
• The broader Indian market was essentially flat, but this stock extended its 4-day winning streak.

Main News

• Over the past four months (including June), City Union Bank's share price has jumped 40%, showing robust momentum.
• In comparison, the Nifty Bank index climbed 17.30% during the same period, highlighting the bank's significant outperformance.
• The sharp rally reflects improved investor sentiment, which is linked to the bank's return to growth and its continued digital transformation.

Company Details

• The bank is currently planning a fundraising initiative.
• A final decision will be taken during the upcoming Annual General Meeting (AGM).
• The AGM date is expected to be set at the Board of Directors meeting scheduled for Wednesday, June 11, 2025.

Financial Performance: Q4 Results (March Quarter)

Revenue and Net Interest Income (NII)

• Net Interest Income stood at ₹600 Crore, marking a 10% YoY increase.
• The rise was supported by a shift away from lower-yielding loans.

Net Interest Margins (NIMs)

• Margins saw a slight improvement of 2 basis points, showing operational efficiency.

Net Profit

• The bank reported a 13% YoY rise in net profit, reaching ₹288 Crore.
• This was primarily driven by an increase in fee-based income, particularly from insurance and processing charges.

Summary

City Union Bank's share price has demonstrated strong upward momentum, reaching a four-year high and delivering 40% returns in under four months. Its steady financial growth, margin improvement, and digital advancements have played an essential role in this rally. With upcoming fund-raising discussions and continued market interest, the stock remains a key focus in the banking sector.