© Reuters.
MUMBAI – Shares of DCB Bank witnessed a significant jump at market opening today, following the disclosure of a potential $10 million investment from the Aga Khan Fund for Economic Development (AKFED). The investment aims to bolster the bank’s capital adequacy in compliance with regulatory norms.
The Mumbai-based private sector bank reported a robust financial performance for the second quarter of the fiscal year 2024 (Q2FY24), with a 13% year-over-year increase in profits to ₹127 crore. The bank’s operating profits also saw an impressive rise, reaching ₹211 crore, marking a 15.3% growth, while other income climbed by 8% to ₹107 crore (INR100 crore = approx. USD12 million).
An earlier statement from DCB Bank had highlighted its strong Capital to Risk (Weighted) Assets Ratio (CRAR), recorded at 16.55%, which did not take into account the earnings from the first half of the year.
Investors and stakeholders are now looking forward to Thursday when the bank’s board is set to meet to consider AKFED’s investment proposal. This meeting comes on the heels of the bank reporting a substantial increase in net interest income for Q2FY24, which was up by 15.8% from the previous fiscal year, standing at ₹476 crore.
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