City Union Bank Limited (CUB) AI Stock Analysis

• Market Cap: ₹205.97B
• Dividend Yield: 0.69%
• Average Volume (3M): 98.23K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.98
• Revenue Growth: 14.95%
• EPS Growth: 14.22%
• Country: IN
• Employees: 7,188
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 4.50
• Shares Outstanding: 743,047,240
• 10 Day Avg. Volume: 69,330
• 30 Day Avg. Volume: 98,235
• 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: ₹335.00
• Price Target Upside: 19.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 17.81
• Revenue Forecast (FY): ₹38.19B

• Rating: 69 Neutral
• Price Target: ₹318.00 ▲(13.11% Upside)
• Action: Reiterated Date: 11/05/25
• Date: Action: Reiterated 11/05/25

City Union Bank Limited's stock is supported by strong technical momentum and reasonable valuation. However, financial performance is mixed, with strong profitability offset by declining revenue growth and negative cash flows. The absence of earnings call and corporate events data limits further insights.

Positive Factors

High profitability and margins

City Union Bank reported a very high net profit margin (38.07%) and a solid ROE (11.87%), indicating efficient cost management and strong income conversion. Durable margins provide an earnings buffer against credit losses, support reinvestment, and help sustain shareholder returns over multiple quarters.

Conservative leverage profile

A debt-to-equity ratio of 0.23 reflects conservative leverage and a stable capital structure. Lower leverage gives the bank financial flexibility to absorb shocks, maintain lending through cycles, and access capital markets less frequently, supporting long-term balance sheet resilience.

Diversified retail/SME franchise and digital partnerships

CUB serves retail, SMEs, corporates and agricultural clients and leverages fintech partnerships to extend digital reach. This diversified client mix and technology tie-ups support sustainable deposit and loan growth, improve customer acquisition and cost efficiency, and reduce single-segment dependence.

Negative Factors

Sharply declining revenue growth

A 37% year-over-year decline in revenue growth is a structural concern: slower top-line expansion constrains scalability, pressures future margin expansion, and may reflect weakening loan origination or competitive pressure. Without improvement, earnings sustainability could be impaired over coming quarters.

Negative operating and free cash flows

Negative operating and free cash flows mean reported profits are not converting into cash, limiting internal funding for growth, dividends, or provisioning. Persistent cash-flow shortfalls can force reliance on external funding, increasing funding costs and reducing strategic flexibility over the medium term.

Business concentration on lending/interest income

Heavy reliance on interest income and lending exposes CUB to credit-cycle and rate risks. Adverse credit conditions or margin compression would materially impact core revenue. Limited diversification into non-interest income leaves profitability sensitive to loan growth and asset quality trends over time.

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 makes money primarily through the interest income generated from its lending activities. The bank offers various types of loans, including personal loans, home loans, vehicle loans, and business loans, charging interest on these products. Additionally, CUB earns revenue through fees and commissions from services such as account maintenance, transaction processing, and wealth management. The bank also generates income from its investment portfolio, which includes government securities and bonds. Significant partnerships with fintech companies and technology providers enhance its digital banking capabilities and customer reach, contributing to overall revenue growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	70.00B	67.32B	60.12B	55.25B	48.62B	48.21B
Gross Profit	33.46B	32.14B	28.65B	29.73B	26.74B	25.16B
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: Neutral
• Last Price: 281.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 281.15 is below the 20-day moving average (MA) of 287.01, below the 50-day MA of 285.56, and above the 200-day MA of 236.65, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 69.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	76 Outperform	₹132.14B	6.23	―	1.03%	9.52%	1.91%
KARURVYSYA	76 Outperform	₹304.40B	13.70	―	0.86%	13.61%	16.82%
KTKBANK	70 Outperform	₹76.79B	6.64	―	2.42%	―	―
CUB	69 Neutral	₹205.97B	16.73	―	0.69%	14.95%	14.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PSB	65 Neutral	₹182.85B	15.39	―	0.26%	18.54%	67.80%
RBLBANK	58 Neutral	₹193.36B	27.05	―	0.33%	6.67%	-54.96%

City Union Bank Limited Corporate Events

City Union Bank Faces Rs 191 Crore GST Demand, Expects No Material Impact

City Union Bank has disclosed that it received a demand order under the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017 from the Assistant Commissioner of State Tax, Kumbakonam Town Assessment Circle, for the financial year 2021-22. The order raises a demand of Rs 191.05 crore in tax, along with applicable interest and penalties, based on alleged taxation of certain exempt incomes, estimated service charges, and input tax credit claims. The bank maintains that it has been fully compliant with GST requirements since implementation and plans to pursue appropriate legal remedies under the GST framework, asserting that the demand lacks legal validity and is not expected to have a material financial impact on its operations.

City Union Bank Engages with Investors at Elara Capital Conference

City Union Bank Limited announced its participation in the Elara Capital Investor Conference held in Hong Kong on December 4, 2025, via video conference. This participation underscores the bank’s commitment to engaging with investors and stakeholders, potentially enhancing its visibility and positioning within the financial sector.