The Board of Directors of City Union Bank Limited has approved a strategic increase in the bank’s authorized share capital during their meeting held on April 27, 2026. This move involves an amendment to the Memorandum and Articles of Association to facilitate future capital expansion. The proposal is currently awaiting necessary regulatory clearances and approval from the shareholders to proceed with the planned adjustment to the bank’s capital structure.
Strategic Capital Restructuring
On April 27, 2026, the Board of Directors of City Union Bank Limited reached a key decision to enhance the institution’s authorized share capital. This initiative is designed to provide the bank with greater flexibility in managing its capital base and supporting long-term growth objectives. The formal amendment process involves revisions to both the Memorandum of Association and the Articles of Association.
Updated Capital Framework
Under the approved plan, the authorized share capital of the company is set at Rs. 200,00,00,000/- (Rupees Two Hundred crores). This total valuation will be divided into 200,00,00,000 equity shares, each with a face value of Re. 1/-. The updated Article of Association also empowers the bank to adjust its authorized capital from time to time as required by future operational and financial resolutions.
Next Steps for Implementation
While the Board has provided its internal approval, the formal execution of these changes is subject to two critical conditions. The bank must obtain clearance from the Reserve Bank of India (RBI) and secure the final consent of its shareholders. Once these requisite approvals are successfully obtained, the bank will proceed with the official alteration of its constitutional documents.
Source: BSE
