DCB Bank share price jumps 8% as Tata AMC gets RBI nod to raise stake in lender
DCB Bank share price rallied nearly 8% in the early trading on Thursday after Tata Asset Management Company (AMC) received regulatory nod to increase stake in the lender. The stock price of the bank jumped as much as 7.98% to an intraday high of ₹131.15 apiece on the BSE.
The Reserve Bank of India (RBI) on July 5 gave its approval to Tata AMC to raise stake in DCB Bank to 7.5%. “Bank has received an intimation from RBI on July 5, 2023, that it has granted its approval to Tata Asset Management Private Limited (TAMPL) to acquire aggregate holding of up to 7.5% of the paid-up equity capital of the Bank through the schemes of Tata Mutual Fund," said DCB Bank in the exchange filing. Read here: RBI approves Tata AMC's move to raise stake in DCB Bank to 7.5%; check details The approval is valid for a period of one year from the date of the RBI letter. RBI also advised Tata AMC to ensure that its aggregate shareholding in the DCB Bank shall not exceed 7.5% of the paid-up capital of the bank at all times.
During the quarter ended March 2023, DCB Bank posted net profit of ₹142 crore, registering a growth of 25% from ₹113 crore from the same quarter last year. The Mumbai-based lender’s net interest income (NII) in Q4FY23 stood at ₹486 crore, up by 27% from ₹380 crore, YoY. The bank's net profit for the fiscal year 2023 was ₹466 crore, up from ₹288 crore in the preceding year, an increase of 62%.
In FY23, the bank said its NII stood at ₹1,717 crore. Read here: DCB Bank Q4 earnings: PAT up 25% YoY, NII rises 27%, Board declares dividend DCB Bank shares have rallied more than 62% in the last one year. At 9:55 am, the shares of DCB Bank were trading 5.52% higher at ₹128.15 apiece on the BSE.
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