BSE:532210

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

City Union Bank

Executive Summary

City Union Bank Ltd. provides various banking products and services to personal and corporate clients in India. More Details


Snowflake Analysis

Adequate balance sheet with poor track record.


Similar Companies

Share Price & News

How has City Union Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532210 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 532210's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-5.9%

532210

0.6%

IN Banks

-0.4%

IN Market


1 Year Return

-28.7%

532210

-3.4%

IN Banks

15.9%

IN Market

Return vs Industry: 532210 underperformed the Indian Banks industry which returned -3.4% over the past year.

Return vs Market: 532210 underperformed the Indian Market which returned 15.9% over the past year.


Shareholder returns

532210IndustryMarket
7 Day-5.9%0.6%-0.4%
30 Day-5.6%3.2%5.0%
90 Day21.1%33.6%24.4%
1 Year-28.5%-28.7%-3.4%-3.4%18.1%15.9%
3 Year9.9%9.1%-24.3%-25.0%9.7%4.4%
5 Year171.3%165.3%35.1%32.1%82.3%68.5%

Long-Term Price Volatility Vs. Market

How volatile is City Union Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is City Union Bank undervalued compared to its fair value and its price relative to the market?

31.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532210 (₹173.95) is trading above our estimate of fair value (₹34.19)

Significantly Below Fair Value: 532210 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532210 is poor value based on its PE Ratio (31.3x) compared to the IN Banks industry average (21.8x).

PE vs Market: 532210 is poor value based on its PE Ratio (31.3x) compared to the Indian market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532210's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532210 is overvalued based on its PB Ratio (2.3x) compared to the IN Banks industry average (1x).


Next Steps

Future Growth

How is City Union Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as City Union Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has City Union Bank performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532210 has a high level of non-cash earnings.

Growing Profit Margin: 532210's current net profit margins (26.5%) are lower than last year (38.6%).


Past Earnings Growth Analysis

Earnings Trend: 532210's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: 532210's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532210 had negative earnings growth (-44.2%) over the past year, making it difficult to compare to the Banks industry average (2.7%).


Return on Equity

High ROE: 532210's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is City Union Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 532210's Assets to Equity ratio (9.1x) is low.

Allowance for Bad Loans: 532210 has a low allowance for bad loans (46%).

Low Risk Liabilities: 92% of 532210's liabilities are made up of primarily low risk sources of funding.

Loan Level: 532210 has an appropriate level of Loans to Assets ratio (69%).

Low Risk Deposits: 532210's Loans to Deposits ratio (84%) is appropriate.

Level of Bad Loans: 532210 has a high level of bad loans (3.5%).


Next Steps

Dividend

What is City Union Bank current dividend yield, its reliability and sustainability?

0.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532210's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: 532210's dividend (0.29%) is low compared to the top 25% of dividend payers in the Indian market (1.81%).


Stability and Growth of Payments

Stable Dividend: 532210's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532210's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as 532210 has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

N. V. Kamakodi (46 yo)

9.67yrs

Tenure

₹28,609,383

Compensation

Dr. N. V. Narayanan Kamakodi, B.Tech., MBA, CAIIB, Ph.D. has been an Managing Director and Chief Executive Officer of City Union Bank Ltd. since May 1, 2011 and served as its Executive President since Janu...


CEO Compensation Analysis

Compensation vs Market: N. V.'s total compensation ($USD391.11K) is about average for companies of similar size in the Indian market ($USD486.27K).

Compensation vs Earnings: N. V.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
N. V. Kamakodi
MD, CEO & Director9.67yrs₹28.61m0.33%
₹ 420.7m
V. Ramesh
Secretary5.5yrs₹3.53m0.024%
₹ 31.1m
V. Gopalakrishnan
General manager of HRMD1yrno data0.011%
₹ 14.2m
K. Maharajan
Senior General Manager of Inspectionno datano datano data
S. Mohan
Senior General Manager of Advancesno datano data0.0081%
₹ 10.5m
S. Ramesh
General Manager of International Banking1yrno data0.0053%
₹ 6.9m
R. Lakshminarayanan
General Manager of Advances1yrno data0.011%
₹ 14.0m
K. Jayaraman
GM of Risk Management & Chief Risk Officer2.75yrsno data0.014%
₹ 17.6m
G. Sankaran
General Manager of Computer Systems1yrno data0.0092%
₹ 11.9m
J. Sridharan
General manager of Inspection1yrno datano data

1.0yrs

Average Tenure

56yo

Average Age

Experienced Management: 532210's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
N. V. Kamakodi
MD, CEO & Director9.67yrs₹28.61m0.33%
₹ 420.7m
Ramabadran Mohan
Independent Non Executive Chairman1.67yrs₹3.02m0.020%
₹ 25.3m
Mahalingam Narayanan
Independent Non-Executive Director4.67yrs₹1.71m0.0029%
₹ 3.8m
Thirukkarugavur Ramkumar
Independent Non-Executive Director1.58yrs₹600.00k0.022%
₹ 28.6m
Subramaniam Narayanan
Independent Non-Executive Director3.58yrs₹1.96m0%
₹ 0
Abarna Bhaskar
Independent Non-Executive Director6.25yrs₹2.03m0.0049%
₹ 6.3m
Narayanan Vellur Shankar
Independent Non-Executive Director2.92yrs₹1.53m0.098%
₹ 126.3m
Thiruvalliangudi Sridhar
Independent Non-Executive Director2.92yrs₹1.52m0.000010%
₹ 12.8k
Vaidyanathan Kalyanasundaram
Independent Non-Executive Director1.67yrs₹660.00k0.000010%
₹ 12.8k

2.9yrs

Average Tenure

64yo

Average Age

Experienced Board: 532210's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 532210 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

City Union Bank Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: City Union Bank Ltd.
  • Ticker: 532210
  • Exchange: BSE
  • Founded: 1904
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹128.445b
  • Shares outstanding: 738.40m
  • Website: https://www.cityunionbank.com

Number of Employees


Location

  • City Union Bank Ltd.
  • Narayana No. 24-B
  • Gandhi Nagar
  • Kumbakonam
  • Tamil Nadu
  • 612001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532210BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1998
CUBNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1998

Biography

City Union Bank Ltd. provides various banking products and services to personal and corporate clients in India. The company operates through four segments: Corporate/Wholesale Banking, Retail Banking, Trea...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 12:11
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.