DCB Bank Share Price Rises Over 5% As ChrysCapital Said To Be In Talks For Capital Infusion
Add Preferred News Source
DCB Bank shares rise over 5% after reports that ChrysCapital may be among PE investors in talks for a capital infusion.
Shares of DCB Bank rose over 5% on Wednesday after CNBC-TV18 reported that the private sector lender is in talks with private equity investors to raise capital.
ChrysCapital is likely among the investors in discussions with the bank, people familiar with the matter said. The talks are still at an early stage and there is no final decision on the investment yet.
The size of the proposed investment, its structure and timing are also yet to be finalised.
DCB Bank's shares extended their gains to more than 5% after the report.
The talks come after the bank's board approved a proposal to raise up to ₹2,000 crore, including up to ₹1,500 crore through an equity issue. The lender can use the proceeds to support its growth plans.
Private equity investors can hold up to 9.99% in a bank, subject to approval from the Reserve Bank of India (RBI). This gives DCB Bank the option of bringing in a PE investor as it looks to raise fresh capital.
A deal, if agreed, would add to the bank's capital base and provide more room for loan growth and expansion. The terms of any investment, however, are yet to be decided.
DCB Bank's capital position has improved over the past year. Its overall capital adequacy ratio stood at 17.03% in June 2026, compared with 16.66% a year earlier.
The bank's Tier-I capital ratio was 14.90%, while Tier-II capital stood at 2.13%.
The proposed fundraise comes despite the bank having a capital adequacy ratio above 17%. Fresh capital could give the lender additional capacity to grow its balance sheet without putting pressure on its existing capital levels.
The interest from PE investors also comes as Indian banks look at different ways to raise capital to fund expansion and meet their capital requirements.
DCB Bank share price
DCB Bank shares were trading more than 5% higher after the report. The stock had gained as investors reacted to the possibility of a fresh capital infusion.
The discussions are still preliminary, so the final size and terms of any transaction remain unclear. A deal would also require the necessary regulatory approvals.
Also Read - Eternal Share Price Hits 10-Month High: What Is Driving The Rally
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
Right Tools, Rich Insights
