City Union Bank has taken a significant step to enhance employee ownership and engagement by allotting over 10 lakh equity shares under its Employee Stock Option Scheme (ESOS). This move, approved by the bank's Compensation and Remuneration Committee on November 23, 2025, demonstrates the bank's commitment to aligning employee interests with those of the organization.

Share Allotment Details

The bank has allotted a total of 1,049,475 equity shares to eligible employees under various ESOS series. Here's a breakdown of the allotment:

Impact on Paid-up Capital

As a result of this share allotment, City Union Bank's paid-up capital has increased:

• Previous paid-up capital: ₹74.10 crores
• New paid-up capital: ₹74.21 crores

This represents an increase of approximately ₹0.11 crores in the bank's paid-up capital.

Significance of the Move

The allotment of shares under the ESOS is a strategic decision that can have several positive implications:

1. Employee Motivation: By offering stock options, the bank incentivizes its employees to contribute to the company's long-term success.

2. Alignment of Interests: Employee ownership helps align the interests of the workforce with those of the shareholders, potentially leading to improved performance and decision-making.

3. Retention Tool: Stock options can serve as an effective retention mechanism for key talent within the organization.

4. Capital Structure: The slight increase in paid-up capital strengthens the bank's equity base, albeit marginally.

This corporate action by City Union Bank reflects a broader trend in the banking sector where employee stock options are increasingly being used as a tool for talent management and organizational alignment. As the banking landscape continues to evolve, such initiatives may play a crucial role in maintaining a motivated and committed workforce.

City Union Bank has taken another step in its expansion strategy by opening a new branch in Aligarh on November 20, 2025. This move marks a significant milestone for the bank as it continues to strengthen its physical presence across India.

Branch Network Expansion

The new branch in Aligarh brings City Union Bank's total branch network to 893 locations. This expansion reflects the bank's commitment to enhancing its reach and providing banking services to a wider customer base.

Key Details of the Expansion

Strategic Implications

This expansion aligns with City Union Bank's ongoing strategy to increase its physical footprint. By establishing a presence in Aligarh, the bank aims to tap into new markets and cater to the diverse banking needs of the region's population.

The continued growth in the number of branches suggests that City Union Bank is maintaining a focus on traditional brick-and-mortar expansion alongside any digital banking initiatives. This balanced approach may help the bank serve customers who prefer in-person banking services while also adapting to the increasing demand for digital banking solutions.

As City Union Bank approaches the milestone of 900 branches, it reinforces its position as a growing player in the Indian banking sector. The expansion strategy could potentially lead to increased market share and improved accessibility for customers across different regions of the country.

City Union Bank's decision to open a new branch in Aligarh demonstrates its confidence in the market potential of the area and its commitment to serving a diverse range of customers across India. As the bank continues to grow its network, it will be interesting to observe how this expansion impacts its overall performance and customer base in the coming years.