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DCB Bank has raised about Rs 94 crore Tier I capital through a Qualified Institutional Placement issue. The bank's board has also approved a preferential allotment of up to Rs 100 crore, said a press release issued on Wednesday.
As a result of the QIP and the preferential issue, the promoters' shareholding in DCB Bank would come to down to around 19.2 per cent, from 23.06 per cent as on end-December 2011. The promoters of DCB Bank are the Aga Khan Fund for Economic Development (AKFED) & Platinum Jubilee Investments Ltd.
Following the preferential allotment, the Bank's Tier I capital would increase by approximately by Rs 98.75 crore.
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 the QIP, the Preferential Allotment or the year-to-date profit after tax for the nine months ended on that date.
Mr Murali Natarajan, Managing Director and CEO, DCB Bank, said the capital raised would be used for executing the growth plans. DCB Bank has a network of 84 branches. At end-December it had advances of Rs 4,306 crore and deposits of Rs 6,191 crore.
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