Private sector lender DCB Bank on Wednesday (July 5) said the Reserve Bank of India (RBI) has granted its approval to Tata Asset Management Private Ltd (TAMPL) to raise its stake in the bank to 7.5 percent.

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"...we would like to inform you that the Bank has received an intimation from RBI on July 5, 2023, that it has granted its approval to Tata Asset Management Private Limited (TAMPL) to acquire aggregate holding of up to 7.5% of the paid-up equity capital of the bank through the schemes of Tata Mutual Fund," the lender said in an exchange filing.

Also, TAMPL has been advised by RBI to ensure that its aggregate shareholding in the bank does not exceed 7.5 percent of the paid-up capital of the bank at all times. The approval is valid for a period of one year from the date of the RBI letter, it said.

DCB Bank posted a 25 percent increase in its net profit to Rs 142 crore in the quarter ended March 2023. Total income during the January-March quarter of FY23 rose to Rs 608 crore from Rs 495 crore in the same period of FY22, the bank said.

The gross non-performing assets (GNPAs) as of March 31, 2023, were 3.19 percent. Net NPAs were at 1.04 percent as of March 31, 2023. Both gross and net NPAs declined sequentially as well as in comparison to last year. For the full 2022-23 fiscal, the bank's net profit jumped by 62 percent to Rs 466 crore compared to Rs 288 crore in 2021-22.

Shares of DCB Bank ended at Rs 121.95, down by Rs 1.55, or 1.26 percent on the BSE.