DCB Bank gains after board OKs fund raising

DCB Bank rose 1.23% to Rs 74.30 after the bank said its board approved raising up to Rs 500 crore.

The board at its meeting held today, 11 June 2020, approved raising upto Rs 500 crore by issuing equity shares/other securities convertible into equity shares through qualified institutions placement, as may be required by the bank from time to time.

The stock has added 8.9% in five sessions from its recent closing low of Rs 68.25 recorded on 04 June 2020. During the same period, the Sensex lost 0.62% while the S&P BSE Bankex gained 0.78%.

DCB Bank is a private sector bank with 336 branches across 19 states and 2 union territories.

The bank's net profit fell 28.6% to Rs 68.76 crore on 9.2% rise in total income to Rs 1011.79 crore in Q4 March 2020 over Q4 March 2019. Net interest income rose by 7.6% to Rs 324 crore in Q4 FY20 from Rs 301 crore in Q4 FY19. Provisions and contingencies surged 239.97% year-on-year to Rs 118.24 crore in the March quarter.

The bank's deposits rose 6.8% to Rs 30,370 crore as on 31 March 2020 from Rs 28,435 crore as on 31 March 2019. Net advances increased 7.5% to Rs 25,345 crore as on 31 March 2020 from Rs 23,568 crore as on 31 March 2019.

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