Shares of this Small-cap stock surged up to 9 percent and trading near their 52-week high levels after Tata Group company gets RBI’s nod to raise its stake in the company. In the past one year, the scrip has gained around 65 percent.
With a market capitalization of Rs 4,000 crores, the stocks of DCB Bank Limited, a Private sector Bank, are currently trading at Rs 130.25. The scrip is soaring near its 52-week high price which was recorded at Rs 141.20.
The stock prices witnessed such movements today after the company, through a regulatory filing with the exchange, mentioned that the Reserve Bank of India (RBI) gave its approval to Tata Asset Management Private Limited (TAMPL) for acquiring up to 7.50 percent of DCB Bank’s paid-up equity share capital.
The acquisition is decided to be performed through the schemes of Tata Mutual Fund. According to the quarter ending March 2023, Tata Mutual Fund has the highest percentage of DII holdings which is 4.95 percent. The above-mentioned approval is valid for a period of one year from the date of letter issued by RBI.
According to the standalone financials reported by the Bank, the total income increased from Rs 3,964 crores during FY21-22 to Rs 4,609 crores in FY22-23. Moreover, the net profits were on the rise shifting from Rs 287 crores to Rs 466 crores during the same period.
Coming onto the non-performing assets (NPAs) of the Bank, there has been an improvement in the gross as well as net NPAs with the former reducing from 4 percent during FY21-22 to 3 percent in FY22-23 and the latter, keeping the timeframe the same, declining from 1.97 percent to 1.04 percent.
In addition to the above, the net interest margins witnessed some growth moving from 3.02 percent during FY21-22 to 3.27 percent in FY22-23.
DCB Bank Limited is a commercial bank based in India that caters to retail as well as corporate customers. Its Banking operations comprise wholesale banking, retail banking, etc.
Written by Amit Madnani
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