City Union Bank to Raise ₹500 Crore Through QIP Route

City Union Bank Limited has outlined major strategic and shareholder-focused actions in its latest board meeting held on 11 June 2025. The bank has proposed to raise capital through the QIP route and declared a dividend for the financial year 2024–25. These resolutions will be placed before shareholders for approval at the upcoming Annual General Meeting.

Bank Proposes ₹500 Crore Capital Raise via QIP

The primary highlight of the board’s decisions is the proposal to raise up to ₹500 crore through Qualified Institutional Placement (QIP). This enabling resolution will be presented to shareholders at the AGM scheduled for 13 August 2025. While the bank has regularly sought such approvals since FY 2009, it has only acted upon it once in FY 2014-15 when it successfully raised ₹350 crore via QIP.

This move signals City Union Bank’s intent to maintain strategic agility and financial readiness for future growth or regulatory requirements. It underscores the bank’s long-term planning towards strengthening its capital position while retaining the necessary headroom for future issuances.

200% Dividend Declared for FY25

Alongside the capital raise proposal, the board declared a dividend of 200% for FY25, equating to ₹2 per equity share of face value ₹1. The record date for determining eligible shareholders is set as 1 August 2025, and the dividend will be distributed on or after the AGM date within the statutory window. This consistent dividend payout demonstrates the bank’s commitment to shareholder value, even while planning for future capital infusion.

City Union Bank Share Performance 

As of June 12, 2025, at 9:40 AM, City Union Bank Share Price is trading at ₹199.88 per share, reflecting a decline of 0.03% from the previous closing price. Over the past month, the stock has surged by 8.68%.

Read More: Top Indian Banks Earn ₹21,773 Crore in Insurance Commissions!

Conclusion

City Union Bank’s twin approach of seeking fresh capital through QIP and rewarding shareholders with a steady dividend reflects a balanced strategy supporting both long-term institutional growth and near-term investor returns. The AGM on 13 August 2025 will be pivotal in shaping the bank’s financial trajectory for the coming years.

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