City Union Bank stock jumps 4% amid heavy volumes, opens new branch in Trichy

So far this year, the stock of this private sector lender has jumped 15 percent

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26 Aug, 2025 12:21

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Shares of City Union Bank rallied over 4 percent to day's high of Rs 175 apiece on August 30 amid heavy volumes. Recently, the Tamil Nadu-based lender opened a new branch in Trichy - taking the total number of branches count to 807.

As much as 5.7 million equity shares were exchanged on both BSE and NSE on August 28 intra-day deals, significantly exceeding 1.9 million equity shares exchanged on a one-week average.

So far this year, the stock of this private sector lender has jumped 15 percent, in-line with benchmark Nifty 50's 15 percent rise during the same period. Earlier this month, City Union Bank shares had hit 52-week high of Rs 176 apiece on August 1.

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In the recently-concluded June quarter, the lender had registered 16.4 percent year-on-year (YoY) increase in net profit to Rs 264.5 crore, while net interest income had risen 4.5 percent YoY to Rs 546 crore.

The gross non-performing asset stood at 3.88 percent in the June quarter, down from 4 percent in the previous quarter. Net NPA, too, came at 1.87 percent as against 1.97 percent quarter-on-quarter.

Analysts at Elara Securities believe that the lender saw steady loan book in a seasonally weak quarter, but it will monitor if the trend sustains. Historically, they said, the bank has been one of the most profitable regional banks, but past few years have been difficult.

"We believe operational parameters are turning favorable as changes made by the bank are starting to take shape. While a definitive turnaround may be sometime away, we find CUBK making the right strategic choices, which will define future capabilities. We see the bank delivering 1.4-1.5 percent RoA with RoE gradually improving to 13-14 percent in the next two years," they stated, retaining a 'buy' call on the counter and hiking target price to Rs 188 apiece (from Rs 182).

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