RBI Allows HDFC AMC to Acquire Stakes in DCB Bank and Karur Vysya Bank

21 Sep 2023 , 03:35 PM

RBI approves HDFC Asset Management Company (AMC) to acquire up to 9.5% stake each in DCB Bank and Karur Vysya Bank. Approval is valid for one year and comes with the condition that HDFC AMC’s shareholding in both banks should not exceed 9.5%.

In September, DCB Bank’s shares increased by over 6% and Karur Vysya Bank’s by over 10%. Year to date, DCB Bank lost 2% while Karur Vysya Bank gained over 18%. Karur Vysya Bank (KVB) reported a 56.7% increase in net profit, reaching Rs 359 crore in Q2 2023 compared to Rs 229 crore in the same period last year.

KVB’s deposits grew by 14% to Rs 80,715 crore in Q1 FY24, and borrowings decreased by 41% to Rs 1,555 crore in the same period. DCB Bank’s Q1FY24 results displayed a 31% rise in net profit to Rs 127 crore, and total income increased by 24% to Rs 578 crore in the June quarter compared to the same quarter last year.

For feedback and suggestions, write to us at [e-mail]