DCB Bank promoter AKFED plans $10-million fresh investment
The infusion of capital is proposed through subscription of additional equity shares of the bank. Shares of DCB Bank Ltd ended at ₹113.00, down by ₹0.050, or 0.044%, on the BSE.
Private sector lender DCB Bank Ltd on Monday (December 4) said its promoter, Aga Khan Fund for Economic Development (AKFED), is considering an investment of up to $10 million.
"Aga Khan Fund for Economic Development (AKFED) (the Promoter) (the Major Shareholder) has expressed its interest to invest up to $10 million (equivalent INR at prevailing exchange rate) by subscribing to additional equity shares of the bank," DCB Bank said in a regulatory filing.
The infusion of capital is proposed through the subscription of additional equity shares of the bank and is subject to compliance with applicable laws and regulations.
DCB Bank, known for its capital-efficient business model, reported a capital-to-risk (weighted) assets ratio (CRAR) of 16.55% as of September 30, 2023, excluding the corresponding half-year net profit.
The Tier I capital stood at 14.28%, with Tier II capital contributing 2.27% to the overall CRAR. The move to bring in additional investment aligns with the bank's commitment to maintaining a robust financial position and furthering its growth trajectory.
The bank's board of directors is set to convene on December 8, 2023, to deliberate and assess the proposed investment by AKFED. If approved by the board, the proposal will progress to seek shareholders' approval in accordance with applicable laws and regulations.
Shares of DCB Bank Ltd ended at ₹113, down by ₹0.050, or 0.044%, on the BSE.
(Edited by : Shoma Bhattacharjee)
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