City Union Bank (CUB), established in 1904 and headquartered in Kumbakonam, Tamil Nadu, is one of India’s oldest private sector banks with a strong regional presence in South India. Operating through over 875 branches, CUB focuses on retail banking, MSME lending, and treasury operations. Known for its conservative credit culture and clean balance sheet, the bank has consistently delivered stable profitability and capital adequacy. As of January 2026, CUB remains a niche but high-quality player in the private banking space—ideal for investors seeking steady compounding with moderate risk. This article provides a data-driven outlook on the City Union Bank share price target 2026–2030.
City Union Bank: Company Overview
- Founded: 1904
- Managing Director: Dr. N. Kamakodi
- NSE Symbol: CUB
- Business Segments: Retail Banking (~55%), Corporate/Wholesale Banking (~25%), Treasury (~20%)
- Market Position: Strong regional bank with leadership in Tamil Nadu; expanding footprint in Karnataka, Andhra Pradesh, and Kerala
CUB maintains one of the highest capital adequacy ratios among private banks at 23.75%, well above RBI’s 11.5% requirement. Its gross NPA stands at 1.98% and net NPA at 0.41%, reflecting disciplined underwriting and robust asset quality.
City Union Bank: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹221.50 |
| Market Capitalization | ₹20,522.73 Cr |
| No. of Shares Outstanding | 74.21 Cr |
| 52-Week High / Low | ₹208 / ₹143* |
| P/E Ratio (TTM) | 16.98 |
| P/B Ratio | 2.07 |
| EPS (TTM) | ₹16.28 |
| Book Value (TTM) | ₹133.76 |
| ROE | 12.58% |
| ROCE | 13.39% |
| Dividend Yield | 0.72% |
| Face Value | ₹1 |
| Net Interest Income | ₹2,315.71 Cr |
| Cost-to-Income Ratio | 47.77% |
| Capital Adequacy Ratio (CAR) | 23.75% |
| Profit Growth (YoY) | 10.62% |
| CASA % | 28.52% |
City Union Bank Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹235 – ₹260 |
| 2027 | ₹250 – ₹285 |
| 2028 | ₹265 – ₹310 |
| 2029 | ₹280 – ₹340 |
| 2030 | ₹295 – ₹370 |
City Union Bank Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹235 | ₹260 |
City Union Bank reported 10.62% YoY profit growth in FY2025, supported by stable asset quality and controlled provisioning. Trading at a P/E of 16.98 and P/B of 2.07—slightly above PSU peers but justified by its clean balance sheet—the stock appears fairly valued. A 2026 target range of ₹235–₹260 assumes continued credit discipline and margin stability.
City Union Bank Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹250 | ₹285 |
If the bank gradually improves its cost-to-income ratio (currently 47.77%) and expands its retail loan book, earnings could grow at 12–15% annually. Assuming EPS reaches ₹18–₹19 by FY27 and P/E stabilizes at 17–18x, the 2027 target range of ₹250–₹285 is justified.
City Union Bank Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹265 | ₹310 |
By 2028, benefits from digital scaling, branch rationalization, and cross-selling should reflect in margins. With a ROCE of 13.39%—higher than ROE—the bank efficiently deploys capital. A P/E of 17.5–18.5x on projected EPS of ₹19–₹21 supports the ₹265–₹310 band.
City Union Bank Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹280 | ₹340 |
Long-term tailwinds include rising credit penetration in South India and CUB’s strong MSME franchise. If competition doesn’t erode margins, EPS could reach ₹20–₹22 by FY29. At a P/E of 18–19x, the 2029 target is ₹280–₹340.
City Union Bank Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹295 | ₹370 |
Over a five-year horizon, CUB’s appeal lies in capital strength and niche focus—not explosive growth. If ROE holds above 12% and dividends resume consistently, investor confidence will remain stable. A terminal P/E of 18.5–20x on FY30 EPS (~₹21–₹23) justifies the ₹295–₹370 range.
City Union Bank: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Public & Retail | 37.29% |
| Domestic Institutional Investors (DII) | 36.75% |
| Foreign Institutional Investors (FII) | 25.96% |
| Promoters | 0% |
The absence of promoters reflects its widely held structure. High institutional ownership (62.71%) ensures liquidity and analyst coverage.
City Union Bank: Strengths vs Risks
Strengths:
- Exceptional capital buffer (CAR: 23.75%)—highest among mid-sized private banks
- Clean asset quality (Net NPA: 0.41%) and consistent ROE (~12.5%)
- Strong legacy in South India with a loyal customer base
- No promoter holding reduces governance concerns
Risks:
- CASA ratio (28.52%) lags behind peers like ICICI (41.8%)
- Limited national scale compared to top-tier private banks
- Contingent liabilities of ₹8,317 Cr require monitoring
- Minimal dividend yield (0.72%) limits income appeal
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Ideal Time Horizon | 5+ years |
| Volatility | Lower than market average; high liquidity |
| Dividend/Income Potential | Low (0.72% yield), but consistent payouts |
| Best For | Core portfolio holding for conservative to moderate-risk investors |
FAQs
Is CUB a good stock to buy?
Yes—for long-term portfolios focused on high-quality regional private banks. At a P/E of 16.98 and ROE of 12.58%, it offers reasonable value relative to fundamentals.
What is another name of City Union Bank?
City Union Bank is also known by its ticker symbol CUB. It was originally incorporated as City Union Bank Limited and has no other official trading name.
Is City Union Bank a government bank?
No. City Union Bank is a private sector bank, not owned or controlled by the Government of India. It is publicly listed with no promoter holding.
Is CUB overvalued or undervalued?
It is fairly valued. While the P/B of 2.07 is higher than that of PSU banks, it is justified by superior asset quality, capital strength, and consistent profitability. Not cheap, but not expensive for its quality.
Final Verdict
City Union Bank has evolved into a disciplined, regionally strong private bank with fortress-like capital buffers and clean asset quality. While it lacks the scale of HDFC or ICICI, its niche focus and operational consistency make it a dependable long-term holding.
Our City Union Bank share price target 2026–2030 (₹235 to ₹370) reflects steady earnings growth, moderate multiple expansion, and sustained investor confidence. It won’t deliver explosive gains, but offers reliable compounding for those betting on India’s tier-2 banking evolution.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – City Union Bank Consolidated Page (FY2025 + TTM)
- Finology Ticker – CUB Financials & Analysis
- Groww.in – City Union Bank Stock Profile
- City Union Bank Investor Presentation (Q3 FY26, Jan 2026)
- RBI Guidelines on Capital Adequacy and Asset Classification
