Development Credit Bank (DCB) has raised about Rs 94 crore Tier I capital through a Qualified Institutions Placement issue.

In a press release issued to the BSE, the bank said that its board of directors has also approved a preferential allotment of Rs 100 crore. Post the preferential allotment, the bank’s Tier I capital would increase by approximately Rs 98.75 crore.

As a result of the QIP and preferential issue, the promoters’ shareholding in DCB Bank would come to down to around 19.2 from 23.06 per cent as on end-December 2011.

As on end-December, the bank’s Capital Adequacy Ratio was 13 per cent (of which Tier I was 11.15 per cent). This does not consider the impact of QIP, preferential allotment or the year-to-date profit after tax for > the nine months ended on that date, the release said.

Mr Murali Natarajan, Managing Director and CEO, said the capital raised would be used for executing the growth plans.

Shares of DCB were trading at Rs 47.25 on the BSE, up 0.21 per cent at 1 pm.

(This article was published on March 14, 2012)
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