RBI allows HDFC AMC to buy stake in DCB, Karur Vysya Bank


DCB Bank has gained over 6 per cent so far in September, while Karur Vysya Bank has jumped over 10 per cent. Year-to-date, DCB Bank lost 2 per cent, while Karur Vysya Bank advanced more than 18 per cent.

The Reserve Bank of India (RBI) has allowed HDFC Asset Management Company (AMC) to acquire up to 9.5 per cent stake each in DCB Bank and Karur Vysya Bank.

The RBI approval is valid for one year from the date of approval, both the lenders said in an exchange filing. The central bank also told HDFC AMC that its stake in the two private banks should not exceed 9.5 percent.

Earlier in June, RBI had given permission to Tata AMC to buy 7.5 percent stake in DCB Bank.

DCB Bank has gained over 6 per cent so far in September, while Karur Vysya Bank has jumped over 10 per cent. Year-to-date, DCB Bank lost 2 per cent, while Karur Vysya Bank advanced more than 18 per cent.

Karur Vysya Bank (KVB) saw a 56.7% rise in net profit to reach Rs 359 crore in Q2 2023, compared to Rs 229 crore in the same period last year. Deposits grew 14% to Rs 80,715 crore in Q1FY24 from Rs 70,961 crore in the same period last year. On the other hand, borrowings declined 41% to Rs 1,555 crore in Q1FY24 from Rs 2,611 crore in April-June FY23.

DCB Bank’s Q1FY24 results saw net profit rise 31% to Rs 127 crore from Rs 97 crore in the same period last year. Total income also increased by 24% to Rs 578 crore in the June quarter from Rs 466 crore in the same quarter last year.


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