Capital Infusion & Share Rally DCB Bank shares rose 5.5% to Rs 218.71 on August 26 after reports that the private lender is in talks with private equity firms, likely Chrys Capital, for a capital infusion. The board has approved a Rs 2,000 crore raise, comprising Rs 1,500 crore through equity issuance, which aligns with RBI’s 9.99% stake limit for private equity players. The move has boosted investor sentiment, propelling the stock higher in mid‑day trading.
Q4 Performance Highlights The bank posted a 35.6% year‑on‑year jump in net profit to Rs 213.2 crore, driven by a 17.8% rise in net interest income to Rs 684 crore. Asset quality improved sequentially, with gross NPA easing to 2.43% from 2.45% and net NPA declining to 0.84% from 0.89%. Provisions nearly halved, falling to Rs 57.1 crore from Rs 115.1 crore a year earlier, offsetting weaker other income.
Analyst Outlook Motilal Oswal reiterated a ‘Buy’ rating, citing the bank’s in‑line earnings and improved provisions. The brokerage set a target price of Rs 235 and maintained FY27 estimates of RoA 1.03% and RoE 15.2%. It noted a slight sequential contraction in net interest margin but expects improvement as the asset mix strengthens. Overall, the capital raise and solid earnings underpin a positive trajectory for DCB Bank in the coming fiscal year.
