City Union Bank Limited's board of directors at a meeting held on June 23, 2026 approved a proposal to raise up to Rs 500 crore through a qualified institutional placement. The QIP includes the premium component. The fund-raising is subject to shareholder approval through an enabling resolution to be proposed at the annual general meeting.
The enabling resolution for the QIP will allow the board to raise capital through issuance of equity shares or other securities to qualified institutional buyers. The pricing of the issue will be determined in accordance with the SEBI regulations applicable to QIPs. The capital raised will strengthen the bank's capital adequacy position.
The board recommended a dividend of Rs 2 per equity share for the financial year ended March 31, 2026. This represents a dividend payout of 200 percent on the face value of Re 1 per share. The dividend declaration requires shareholder approval at the annual general meeting.
The record date for the dividend has been fixed as July 14, 2026. Shareholders whose names appear on the register of members as of the record date will be eligible to receive the dividend payment of Rs 2 per share. The dividend will be paid to eligible members on or after August 14, 2026.
The annual general meeting of City Union Bank Limited has been scheduled for August 14, 2026. Shareholders will consider the adoption of audited financial statements, the dividend declaration, and the enabling resolution for the QIP fund-raising among other items of business.
The board approved the notice calling the annual general meeting, which will contain the full text of all resolutions to be considered by shareholders. The notice will be sent to shareholders within the statutory timeline.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.