Highlights
- City Union Bank approved a proposal to raise up to INR 540 crore through QIP.
- The board fixed August 14, 2026, as the date for the Annual General Meeting.
- Directors also announced a final dividend of INR 2 per equity share for FY26.
City Union Bank Limited (NSE:CUB) has approved a proposal to raise up to INR 540 crore through the Qualified Institutional Placement (QIP) route. The decision was taken at the meeting of the Board of Directors held on June 23, 2026.
According to the regulatory filing, the proposal will be included in the notice convening the company's Annual General Meeting (AGM) as an enabling resolution, subject to shareholders' approval.
Source: Analysis by Kalkine
QIP Proposal to Be Placed Before Shareholders
The bank said it intends to raise further capital of up to INR 540 crore, including premium, through the QIP route.
The proposal will be placed before shareholders during the forthcoming Annual General Meeting for approval. The filing does not specify the issue price, timing of the fund raising or the number of equity shares that may be issued under the proposal.
Annual General Meeting Scheduled
The Board has fixed Friday, August 14, 2026, as the date for the bank's ensuing Annual General Meeting.
Shareholders will consider the proposed QIP resolution along with other items included in the AGM notice.
Dividend Record Date Announced
City Union Bank has also announced a final dividend of 200% for the financial year 2025-26.
The dividend amounts to INR 2 per equity share of face value Re. 1 each.
The record date for determining eligible shareholders has been fixed as August 14, 2026. The bank stated that the dividend will be paid on or after August 14, 2026, within the statutory timeline.
Regulatory Disclosure
The bank disclosed the decisions under Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The outcome of the Board meeting was communicated to both the National Stock Exchange of India and BSE on June 23, 2026.
Key Risks
- Shareholder approval is required for the proposed QIP.
- Equity issuance could dilute existing shareholding.
- Market conditions may influence fund-raising timelines.
- Capital raising terms remain subject to final approval.
Summary
City Union Bank's Board has approved a proposal to raise up to INR 540 crore through a Qualified Institutional Placement, subject to shareholder approval at the AGM scheduled for August 14, 2026. The Board also declared a final dividend of INR 2 per equity share for FY26 and fixed August 14 as the record date.
FAQs
Q: How much capital does City Union Bank plan to raise?
A: The bank has approved a proposal to raise up to INR 540 crore through the Qualified Institutional Placement route.
Q: When is City Union Bank's 2026 Annual General Meeting?
A: The Annual General Meeting is scheduled to be held on Friday, August 14, 2026.
Q: What dividend has City Union Bank announced for FY26?
A: The bank announced a dividend of INR 2 per equity share, equivalent to 200% on the face value of Re. 1.