DCB Bank raises Rs 94 crore via QIP; to mop up Rs 99 crore more

Medium-sized private lender DCB Bank said it has raised Rs 94 crore through a qualified institutional placement (QIP) and will get an additional Rs 98.75 crore through preferential allotment of shares to enhance its core capital and reduce promoters' holding.

"The capital raised will certainly help us in executing our plans for growth in the near future," DCB Managing Director and Chief Executive Murali M Natrajan said in a statement here.

The bank's tier-I capital as of the December quarter stood at 11.15 per cent. The lender has not specified at what levels will it go to post-infusion.

It, however, said an additional Rs 98.75 crore in capital is expected to flow in by way of a preferential allotment. Shareholder and regulatory approvals are pending for the same.

The bank board had last month decided to infuse Rs 100 crore through the preferential allotment, the statement said.

Once completed, the twin fund infusion will help bring down the promoters' holding to 19.20 per cent from 23.06 per cent as of December end, it said.

The Aga Khan Foundation-promoted DCB Bank, which changed into a private sector lender from being a co-operative, has been asked by the Reserve Bank to bring down its stake to 10 per cent by March 2014.

The bank had earlier said it expected the capital infusion through the QIP route to come through in the first quarter of the next fiscal due to sloppy market conditions.

Source: EconomicTimes