The Reserve Bank of India (RBI) has allowed HDFC Asset Management Company (AMC) to acquire up to 9.5 percent stake each in the DCB Bank and Karur Vysya Bank.
RBI’s approval is valid for one year from the approval date, both the lender said in an exchange filing. The central bank also told HDFC AMC that its shareholding in both the private banks should not exceed 9.5 percent.
Earlier in June, RBI allowed Tata AMC to buy 7.5 percent stake in the DCB Bank.
So far in September, DCB Bank gained over 6 percent while Karur Vysya Bank jumped over 10 percent. Year to date, DCB Bank lost 2 percent while Karur Vysya Bank advanced over 18 percent.
Karur Vysya Bank (KVB) saw 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. Deposits grew by 14% to Rs 80,715 crore in Q1 FY24, up from Rs 70,961 crore in the same period last year. Borrowings, on the other hand, decreased by 41% to Rs 1,555 crore in Q1 FY24, down from Rs 2,611 crore in April-June FY23.
DCB Bank's Q1FY24 results showed a 31% rise in net profit to Rs 127 crore, up from Rs 97 crore in the same period last year. Total income also increased by 24% to Rs 578 crore in the June quarter, compared to Rs 466 crore in the same quarter last year.
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