The Reserve Bank of India has granted approval to HDFC Asset Management Company (AMC) to acquire a 9.5% stake each in DCB Bank and Karur Vysya Bank (KVB). This permission is valid for a year from the approval date, and the central bank has instructed HDFC AMC to ensure that its shareholding in both private banks does not exceed 9.5%. In a similar move, RBI had earlier permitted Tata AMC to purchase a 7.5% stake in DCB Bank in June. DCB Bank shares have shown a rise of over 6% in September, while Karur Vysya Bank’s stocks have surged by more than 10%. DCB’s stock has experienced a 2% decline this year, while Karur Vysya Bank’s stock has risen by over 18%.
DCB Bank Shares Rise, Karur Vysya Bank Stocks Surge in September
Karur Vysya Bank (KVB) has reported a significant increase in profits, with a surge of 56.7% to Rs 359 crore in the second quarter of 2023, compared to Rs 229 crore in the same period the previous year. Additionally, KVB’s deposits for the first quarter of the financial year 2023-24 have surged by 14% to Rs 80,715 crore, compared to Rs 70,961 crore in the same period a year ago. Furthermore, the bank’s borrowings have witnessed a substantial decline of 41% to Rs 1,555 crore in the first quarter of the current financial year, down from Rs 2,611 crore in Q1FY23.
DCB Bank and Karur Vysya Bank Show Positive Trends on September 21
On the other hand, DCB Bank has recorded a 31% increase in net profit, reaching Rs 127 crore in the first quarter of this financial year, compared to Rs 97 crore in the corresponding period of the previous year. The total income has also seen a notable rise of 24% to Rs 578 crore from Rs 466 crore in the same period a year ago.
DCB Bank shares displayed positive gains on September 21, reaching Rs 126.55, up by 2.1%. Similarly, KVB shares showcased strength, standing at Rs 136.15, reflecting a rise of 1.72%.