Shares of this Private sector Bank under the ‘small-cap’ category jumped around 4 percent in Tuesday’s trading session after one of the Promoter group members and major shareholder of the Bank plans to invest $10 million.
With a market capitalization of Rs 3,665.36 crores, the stocks of DCB Bank Limited started their trading session on Tuesday at Rs 117.05 and currently trades at Rs 117.45, gaining around 4 percent as compared to the previous closing levels of Rs 113 apiece.
In a recent exchange filing, the Bank provided a prior intimation about Aga Khan Fund for Economic Development (AKFED), one of the Promoter group members and major shareholder of the Bank, expressing interest in investing up to $10 million to strengthen the capital position and support growth plans of the Bank.
During the recent financial quarters, the Bank has successfully increased its total income from Rs 1,344.68 crores during Q1FY23-24 to Rs 1,412.95 crores during Q2FY23-24. In addition, the company’s net profit numbers, during the same period, have stayed uniform at levels of Rs 126 crores.
Coming onto some Bank-specific ratios, the net non-performing assets (NPAs) have reduced in the recent periods with the most recent movement being from 1.97 percent during FY21-22 to 1.04 percent during FY22-23. Moreover, the net interest margin (NIM) shifted from 3.21 percent to 3.48 percent keeping the time horizon the same.
During Q2FY23-24, the Bank registered a YoY growth in deposits and advances of around 23 percent and 19 percent respectively. In addition to the above, the total business of the Bank crossed Rs 75,000 crores.
As per the shareholding pattern data for the September 2023 quarter, the Bank’s Promoters hold a 14.81 percent stake, Public shareholders hold a 33.45 percent stake, and Foreign Institutional Investors (FIIs) hold a 12.74 percent stake.
Incorporated in 1930, DCB Bank Limited is a commercial Bank based in India that caters to retail and corporate customers. The Banking operations are mainly structured into retail Banking, treasury operations, wholesale Banking, and other Banking operations.
Written by Amit Madnani
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