City Union Bank's board has approved a 200% dividend for FY26, amounting to ₹2 per equity share on a face value of Re.1, and proposed raising ₹500 crore through a Qualified Institutional Placement (QIP). The dividend will be paid to shareholders on or after August 14, 2026, subject to the record date of July 31, 2026. The capital raising initiative via QIP will be included as an enabling resolution in the notice for the Annual General Meeting scheduled for August 14, 2026, requiring member approval.

The Board of Directors met on June 23, 2026, to finalize the dividend details and the capital raising plan. The record date of July 31, 2026, determines shareholder eligibility for the dividend payout. The bank stated that the dividend disbursement will occur within the statutory time period following the Annual General Meeting.

Dividend and AGM Details

The bank has fixed the record date to identify shareholders entitled to receive the dividend. The payout is scheduled to commence on or after the date of the Annual General Meeting.

Capital Raising Plan

city union bank intends to raise ₹500 crore, including premium, through the QIP route. This proposal requires approval from the shareholders and will be presented as a special resolution at the upcoming Annual General Meeting. The proceeds are intended to bolster the bank's capital base.

City Union Bank has closed its trading window for designated persons and their immediate relatives effective July 1, 2026. The window will remain shut until 48 hours after the declaration of the bank's standalone unaudited financial results for the quarter ended June 30, 2026. This measure is intended to prevent insider trading in line with regulatory requirements.

The closure is pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the bank's Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons. The bank stated that the date of the board meeting to approve the financial results will be intimated to the exchanges in due course.

Regulatory Compliance and PAN Freezing

In accordance with SEBI Circular No. SEBI/HO/ISD/ISD-PoD-2/P/CIR/2025/55 dated April 21, 2025, and SEBI Circular No. SEBI/HO/ISD/ISD-PoD-2/P/CIR/2023/124 dated July 19, 2023, the Permanent Account Number (PAN) of designated persons and their immediate relatives will be marked for freezing. This action will be taken at the depositories at the security level against the ISIN of the bank's equity shares.

Consequently, all connected persons, designated persons, and their immediate relatives are prohibited from trading in the securities of the bank during the trading window closure period. The bank has requested the exchanges to take note of the closure and disseminate the information to all concerned parties.