City Union Bank Limited (CUB) AI Stock Analysis

• Market Cap: ₹151.51B
• Dividend Yield: 0.98%
• Average Volume (3M): 67.61K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.07
• Revenue Growth: 14.10%
• EPS Growth: 10.60%
• Country: IN
• Employees: 7,188
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 4.10
• Shares Outstanding: 741,048,800
• 10 Day Avg. Volume: 108,372
• 30 Day Avg. Volume: 67,614
• PEG Ratio: 1.00
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 4.04
• 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: ₹226.33
• Price Target Upside: 10.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 62 Neutral
• Price Target: ₹213.00 ▲(4.18% Upside)

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.

Positive Factors

Strong Profitability

The high net profit margin indicates efficient cost management and strong operational performance, which are crucial for long-term sustainability and competitiveness in the banking sector.

Efficient Operations

A conservative leverage approach with a moderate debt-to-equity ratio suggests financial prudence, reducing risk and enhancing the bank's ability to navigate economic fluctuations.

Solid Return on Equity

A solid return on equity demonstrates the bank's ability to effectively utilize shareholders' funds to generate profits, which is a positive indicator of management efficiency and financial health.

Negative Factors

Decline in Revenue Growth

A significant decline in revenue growth can impact future profitability and market competitiveness, indicating potential challenges in maintaining market share or expanding the customer base.

Negative Cash Flows

Negative cash flows suggest difficulties in generating sufficient cash from operations, which can constrain investment in growth opportunities and affect financial flexibility.

Negative Free Cash Flow Growth

Negative growth in free cash flow indicates potential issues in sustaining operational efficiency and meeting financial obligations, which could impact long-term financial stability.

City Union Bank Limited Business Overview & Revenue Model

Company Description

City Union Bank Limited (CUB) is a prominent private sector bank in India, established in 1904, that primarily serves retail and small to medium-sized enterprises. The bank operates across various sectors, including personal banking, corporate banking, agricultural banking, and financial inclusion services. CUB offers a range of financial products and services such as savings and current accounts, fixed deposits, loans, credit cards, insurance, and investment services, aiming to meet the diverse banking needs of its customers.

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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.09B	29.52B	28.65B	29.73B	26.74B	25.16B
Gross Profit	39.09B	29.52B	28.65B	29.73B	26.74B	25.16B
EBITDA	10.82B	14.98B	13.06B	12.50B	10.70B	7.80B
Net Income	11.24B	11.24B	10.16B	9.37B	7.60B	5.93B
Balance Sheet
Total Assets	776.23B	776.23B	708.26B	665.95B	615.31B	533.12B
Cash, Cash Equivalents and Short-Term Investments	52.91B	52.91B	33.00B	40.38B	45.45B	36.18B
Total Debt	21.69B	21.69B	47.24B	46.88B	57.87B	15.30B
Total Liabilities	681.57B	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	-307.92M	95.69M

City Union Bank Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 204.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 204.45 is above the 20-day moving average (MA) of 203.92, below the 50-day MA of 208.58, and above the 200-day MA of 183.20, indicating a neutral trend. The MACD of -2.14 indicates Negative momentum. The RSI at 50.55 is Neutral, neither overbought nor oversold. The STOCH value of 80.82 is Negative, 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
Sector *	68 Neutral	$18.02B	11.58	9.93%	3.76%	9.73%	1.31%
CUB	62 Neutral	₹151.51B	13.00		0.98%	14.10%	10.60%
J&KBANK	―	₹111.32B	5.18		0.86%	―	―
KARURVYSYA	―	₹203.56B	10.15		1.03%	―	―
KTKBANK	―	₹67.70B	5.81		3.07%	―	―
RBLBANK	65 Neutral	₹166.67B	28.50		0.37%	11.64%	-55.39%
PSB	60 Neutral	₹205.91B	18.04		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.