Investors withdraw from City Union Bank

City Union Bank declined 1.03% to Rs 28.70 at 11:14 IST on BSE after bank said it would issue 80 million shares by way of qualified institutional placement.

The stock hit a high of Rs 29 and a low of Rs 27.15 so far during the day. The stock had a 52-week high of Rs 51.55 on 3 January 2008 and a 52-week low of Rs 15.10 on 2 April 2007.

The bank’s current equity is Rs 32 crore. Face value per share is Rs 1.

The current price of Rs 28.70 discounts Q3 December 2007 annualised EPS of Rs 3.17 by a PE multiple of 9.05.

City Union Bank’s net profit rose 83.1% to Rs 25.38 crore on 59.7% rise in operating income to Rs 176.15 crore in Q3 December 2007 over Q3 December 2006.

The price at which the shares will be issued will be decided later, it said.

The bank had recently announced a 10-to-1 stock split. The record date for stock split was 30 January 2008.

City Union Bank is a leading scheduled private commercial bank with a strong base in urban, semi-urban and rural centres of south India.