Shares of DCB bank surged around 8 per cent in the early trading on Thursday after the Reserve Bank of India (RBI) gave its approval to Tata Asset Management Company to increase its stake in the lender. The stock rallied as high as 7.98 per cent to an intraday high of Rs 131.15 per share on the Bombay Stock Exchange (BSE).
At 10:20 am, DCB shares were trading 5.48 per cent higher at Rs 128.10
The RBI gave its nod to Tata AMC to raise its stake in DCB Bank to 7.5 per cent. “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.
The approval is valid for one year from the date of the RBI letter, according to a regulatory filing by the bank to the stock exchanges.
According to the statement, the central bank advised Tata AMC to ensure that its aggregate shareholding in DCB Bank shall not exceed 7.5 per cent of the paid-up capital of the bank at all times.
During the January-March 2023 quarter, DCB Bank reported a net profit of Rs 142 crore, a growth of 25 per cent from Rs 113 crore in the year-ago period.
For the fiscal year 2022-23, the bank posted a net profit of Rs 466 crore, up from Rs 288 crore in the preceding year, an increase of 62 per cent. In FY23, the bank said its Net Interest Income (NII) stood at Rs 1,717 crore.
DCB Bank shares have gained more than 62 per cent in the last year.