Strong Rally and Market Outperformance
On the day of this milestone, City Union Bank’s stock demonstrated remarkable strength, opening with a gap up of 11.45% and touching an intraday high of Rs.319.95, representing a 13.26% increase from the previous close. The stock outperformed its sector peers by 6.38%, while the broader Bank - Private sector index gained 2.52%. This rally followed two consecutive days of decline, signalling a clear trend reversal and renewed investor confidence.
Volatility was elevated, with an intraday weighted average price volatility of 5.44%, underscoring active trading interest and dynamic price movements. The stock is currently trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained upward momentum across multiple timeframes.
Market Context and Comparative Performance
While the Sensex opened sharply higher by 3,656.74 points, it later retraced 1,747.42 points to trade at 83,575.78, down 2.34% on the day. Despite this broader market pullback, City Union Bank’s stock maintained its upward trajectory, highlighting its relative strength. The Sensex remains 3.09% below its own 52-week high of 86,159.02, and is trading below its 50-day moving average, though the 50DMA itself is above the 200DMA, signalling a cautiously positive medium-term trend.
City Union Bank’s one-year performance stands out distinctly, with a gain of 77.57%, vastly outperforming the Sensex’s 8.29% return over the same period. This outperformance reflects the bank’s strong fundamentals and market positioning within the private sector banking industry.
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Financial Strength and Quality Metrics
City Union Bank’s recent performance is underpinned by solid financial metrics. The bank maintains a low Gross Non-Performing Assets (NPA) ratio of 2.42%, with the latest quarter recording the lowest Gross NPA at 2.17%. This reflects prudent lending practices and effective risk management.
The Capital Adequacy Ratio stands robust at 20.09%, signalling a strong buffer against risk-weighted assets and reinforcing the bank’s financial stability. Net interest income (NII) reached a quarterly high of Rs.752.17 crore, while interest earned also hit a record Rs.1,755.68 crore, indicating healthy core earnings growth.
Net profit growth has been impressive, with an annualised rate of 24.20%, supported by six consecutive quarters of positive results. Institutional investors hold a significant 63.73% stake in the company, having increased their holdings by 1.02% over the previous quarter, reflecting confidence from well-resourced market participants.
Valuation and Risk Considerations
Despite the strong performance, the stock trades at a premium valuation with a Price to Book Value of 2.1, which is higher than the average historical valuations of its peers. The Return on Assets (ROA) is 1.4%, and the Price/Earnings to Growth (PEG) ratio stands at 1.2, indicating that while growth prospects are priced in, the valuation remains on the expensive side relative to earnings growth.
Profit growth over the past year has been 14.3%, which, while healthy, is outpaced by the stock’s 74.72% return, suggesting elevated market expectations. Investors should note these valuation metrics when analysing the stock’s current price levels.
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Long-Term Growth and Market Positioning
City Union Bank’s sustained growth trajectory is evident in its market-beating returns over multiple time horizons. The stock has generated 74.72% returns in the last year and has outperformed the BSE500 index over the last three years, one year, and three months. This consistent outperformance highlights the bank’s ability to deliver shareholder value amid competitive pressures in the private banking sector.
The bank’s strong lending practices, combined with a high capital adequacy ratio and steady profit growth, have contributed to its elevated market valuation and investor interest. The stock’s trading above all major moving averages further confirms the positive technical momentum supporting this new 52-week high.
While the broader market experienced volatility and a pullback on the day, City Union Bank’s stock demonstrated resilience and strength, underscoring its status as a leading private sector bank with robust fundamentals and a solid growth outlook.
Summary of Key Metrics
To summarise, City Union Bank Ltd. reached an all-time high of Rs.319.95 on 3 Feb 2026, with a day’s gain of 6.69%. The stock’s one-year return of 77.57% significantly outpaces the Sensex’s 8.29% over the same period. The bank’s gross NPA ratio remains low at 2.42%, capital adequacy ratio is strong at 20.09%, and net profit growth is robust at 24.20% annually. Institutional holdings are high at 63.73%, reflecting confidence from sophisticated investors.
Despite a premium valuation with a Price to Book Value of 2.1 and a PEG ratio of 1.2, the stock’s technical and fundamental strength has propelled it to this new milestone, marking a significant achievement in its market journey.
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