Latest balance sheet of City Union Bank is strong. Strength was visible historically as well.

Yes, profit is increasing.
The profit of City Union Bank is ₹1,053 Crs for TTM, ₹1,016 Crs for Mar 2024 and ₹937 Crs for Mar 2023.

The company seems to be paying a very low dividend.
Investors need to see where the company is allocating its profits.
City Union Bank latest dividend payout ratio is 10.94% and 3yr average dividend payout ratio is 9.52%

Company has been allocating majority of new resources to productive uses like loans.
However relatively unproductive allocation like cash and Gov Securities has also increased.