City Union Bank Adjusts Valuation Grade Amid Competitive Banking Landscape

City Union Bank has recently undergone a valuation adjustment, reflecting its current financial standing within the private sector banking industry. The bank's price-to-earnings (PE) ratio stands at 15.55, while its price-to-book value is recorded at 1.89. The PEG ratio is noted at 1.09, indicating a balanced growth perspective relative to its earnings. Additionally, City Union Bank offers a dividend yield of 0.79%, with a return on equity (ROE) of 12.17% and a return on assets (ROA) of 1.56%. The net non-performing assets (NPA) to book value ratio is at 5.17%.
In comparison to its peers, City Union Bank's valuation metrics present a more favorable outlook. For instance, Bandhan Bank and Karur Vysya Bank are positioned with higher PE ratios, while RBL Bank's valuation is notably elevated. Conversely, South Indian Bank and CSB Bank share a similar valuation standing with City Union Bank, indicating a competitive landscape within the small-cap banking sector. The bank's performance has also shown resilience, with a year-to-date return of 46.97%, significantly outpacing the Sensex's return of 6.91% during the same period.