Bonus bonanza! Last date to buy City Union Bank shares for 1:3 reward
City Union Bank has set June 12 as the record date for its bonus issue in the ratio of 1:3, making today, June 11, the
City Union Bank has set June 12 as the record date for its bonus issue in the ratio of 1:3, making today, June 11, the last day for interested investors to buy the bank's shares to qualify for the bonus shares.Only shareholders who hold City Union Bank shares in their demat accounts as of Friday will be eligible to receive the bonus shares. Due to SEBI's T+1 settlement norm, investors must purchase the company's shares at least one trading day before the record date so they are credited to their demat accounts by that date and qualify for the corporate action. This effectively makes today the final day for investors to buy the shares to be eligible for the bonus issue.All about City Union Bank’s bonus issueCity Union Bank announced a 1:3 bonus issue in April, meaning eligible shareholders will receive one equity share for every three fully paid-up equity shares held in their demat accounts as on the record date.The bonus shares will be issued using nearly Rs 25 crore from the lender’s securities premium account, whose balance stood at more than Rs 940 crore on March 31, 2026.
Later in May, City Union Bank fixed June 12 as the record date to determine the eligibility of shareholders for the bonus shares.Notably, this marks the first bonus issue announced by the lender in eight years, since a 1:10 bonus issue in 2018. A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio.Also read: How Sensex, Nifty rallied 200% under PM Modi's record-breaking tenureCity Union Bank share priceCity Union Bank shares have gained 2% in one week, but declined 3% in one month.
Shares of the company have fallen over 12% in 2026 so far. In the longer term, they've gained 23% in one year, 104% in three years, and 52% in five years.The bank reported a 25% year-on-year rise in net profit to Rs 359.56 crore for the fourth quarter of FY26, up from Rs 287.96 crore reported in the corresponding quarter
of the previous financial year. Its net interest income (NII), meanwhile, increased around 31% YoY to Rs 785.83 crore during the quarter under review.Also read: Wipro's Rs 15,000 crore buyback opens; 10 key things to know before tendering shares(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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