City Union Bank Limited (CUB) AI Stock Analysis

• Market Cap: ₹162.77B
• Dividend Yield: 0.93%
• Average Volume (3M): 96.63K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.08
• Revenue Growth: 14.10%
• EPS Growth: 10.60%
• Country: IN
• Employees: 7,188
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 4.10
• Shares Outstanding: 741,048,800
• 10 Day Avg. Volume: 86,902
• 30 Day Avg. Volume: 96,629
• PEG Ratio: 1.00
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 1.77
• P/FCF Ratio: -1.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹221.00
• Price Target Upside: 3.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 62 Neutral
• Price Target: ₹213.00 ▼(-0.33% Downside)

City Union Bank Limited's overall stock score is primarily influenced by its strong profitability and efficient operations, despite the sharp decline in revenue growth and negative cash flows. The technical indicators suggest a bearish trend, which is a concern. However, the stock's valuation appears attractive with a low P/E ratio, indicating potential undervaluation.

City Union Bank Limited Business Overview & Revenue Model

Company Description

City Union Bank Limited provides various banking products and services to personal and corporate clients in India. The company operates through four segments: Treasury, Corporate, Retail Banking, and Other Banking Operations. It offers savings, current, and salary accounts; fixed, flexi fix, recurring, and tax saver deposits; and NRI banking products and services. The company also provides consumer, two and four-wheeler, home, educational, personal and agricultural gold, working capital, easy business, foreign currency, agricultural term, and small road transport operator loans; cash credits, bank guarantees, letters of credit, and bills finance, as well as gold based overdrafts facilities; and international business services, including export, import, remittance, correspondent banking, and treasury risk management services. In addition, it offers locker facilities, automated teller machines (ATMs), cash deposit machines/bulk note acceptors, and point of sales services, as well as demat and insurance products and services; and debit/prepaid and credit cards. Further, the company provides cash management, payment to government, national electronic fund transfer, immediate payment, real time gross settlement, national automatic clearing house, and other tech services. As of March 31, 2022, it operated through a network of 727 branches; 1,732 ATMs, including 789 bulk note recycler machines; 610 passbook kiosks; and 589 cheque deposit kiosks. The company was formerly known as The Kumbakonam City Union Bank Limited and changed its name to City Union Bank Limited in November 1987. City Union Bank Limited was incorporated in 1904 and is based in Kumbakonam, India.

How the Company Makes Money

City Union Bank generates revenue primarily through the interest income earned on loans and advances provided to customers, which constitutes a significant portion of its earnings. The bank offers various loan products, including personal loans, home loans, vehicle loans, and business loans, charging interest rates that vary based on the risk profile of borrowers and prevailing market rates. Additionally, CUB earns fee-based income from services such as account maintenance fees, transaction fees, and commissions from financial products like insurance and mutual funds. The bank also benefits from treasury operations, where it manages its liquidity and investments in government and corporate securities. Significant partnerships with financial technology firms and other institutions enhance its product offerings and customer reach, contributing to its overall revenue stream.

City Union Bank Limited Financial Statement Overview

Summary

City Union Bank Limited demonstrates strong profitability and efficient operations, as evidenced by robust margins. However, the sharp decline in revenue growth and negative cash flows pose significant risks. The balance sheet remains stable with moderate leverage, but the cash flow issues need to be addressed to ensure long-term financial health.

Income Statement

City Union Bank Limited has shown strong profitability with a high net profit margin of 38.07% in the latest year, indicating efficient cost management. However, the revenue growth rate has significantly declined by 37% compared to the previous year, which is a concern. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The bank maintains a moderate debt-to-equity ratio of 0.23, indicating a conservative leverage approach. Return on equity is solid at 11.87%, showcasing effective use of equity. However, the equity ratio is not explicitly calculated, which could provide further insights into financial stability.

Cash Flow

The cash flow situation is challenging, with negative operating and free cash flows in the latest year. The free cash flow to net income ratio is slightly above 1, suggesting that cash generation is not keeping pace with net income. The negative growth in free cash flow is a significant concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	70.00B	67.32B	60.12B	23.33B	48.62B	25.16B
Gross Profit	32.76B	32.14B	28.65B	23.33B	26.74B	17.43B
EBITDA	14.63B	14.98B	13.06B	12.50B	10.70B	7.80B
Net Income	11.65B	11.24B	10.16B	9.37B	7.60B	5.93B
Balance Sheet
Total Assets	0.00	776.23B	708.26B	665.95B	615.31B	533.12B
Cash, Cash Equivalents and Short-Term Investments	0.00	52.91B	33.00B	66.49B	66.87B	56.15B
Total Debt	0.00	22.65B	47.24B	46.88B	53.12B	14.61B
Total Liabilities	-94.67B	681.57B	624.24B	591.37B	549.45B	474.69B
Stockholders Equity	94.67B	94.67B	84.01B	74.57B	65.86B	58.42B
Cash Flow
Free Cash Flow	0.00	-69.39B	2.68B	14.15M	10.88B	8.46B
Operating Cash Flow	0.00	-67.41B	4.36B	1.00B	11.66B	9.22B
Investing Cash Flow	0.00	-1.20B	-41.86B	-718.85M	-628.40M	-379.56M
Financing Cash Flow	0.00	52.08B	32.23B	-661.67M	31.22B	37.14B

City Union Bank Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 213.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CUB, the sentiment is Positive. The current price of 213.7 is above the 20-day moving average (MA) of 209.58, above the 50-day MA of 207.98, and above the 200-day MA of 185.75, indicating a bullish trend. The MACD of 3.15 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 77.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CUB.

City Union Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
J&KBANK	75 Outperform	₹114.58B	5.33	―	0.83%	13.45%	12.59%
KARURVYSYA	74 Outperform	₹211.20B	10.53	―	0.97%	14.84%	17.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RBLBANK	65 Neutral	₹175.48B	29.98	―	0.35%	11.64%	-55.39%
CUB	62 Neutral	₹162.77B	13.97	―	0.93%	14.10%	10.60%
PSB	60 Neutral	₹211.87B	18.56	―	0.24%	20.55%	74.68%

City Union Bank Limited Corporate Events

City Union Bank Reports AGM Voting Results and Financial Statement Adoption

City Union Bank Limited announced the voting results and scrutinizer’s report from its Annual General Meeting held on August 13, 2025. The meeting included the adoption of audited financial statements for the financial year ending March 31, 2025. The results indicate the bank’s compliance with regulatory requirements and reflect shareholder engagement in the bank’s governance processes.

City Union Bank Reports on Q1 FY 2026 Earnings Call

City Union Bank Limited announced the outcome of its Q1 FY 2026 earnings call, which was organized by Ambit Capital and attended by key executives including the MD & CEO, Dr. N. Kamakodi. The participation in this call reflects the bank’s ongoing commitment to transparency and communication with stakeholders, providing insights into its financial performance and strategic direction.