DCB Bank, a leading private sector bank, announced on Wednesday that it has obtained approval from the Reserve Bank of India (RBI) to sell up to a 7.5% stake in the bank to Tata Asset Management Private Limited (TAMPL).
According to a regulatory filing by DCB Bank, the acquisition of this stake, representing up to 7.5% of the bank’s paid-up equity capital, will be executed through the schemes of Tata Mutual Fund. The approval granted by the RBI is valid for a period of one year, starting from the date of the RBI’s letter on July 5, 2023.
However, it should be noted that the RBI’s approval is subject to compliance with various regulations and guidelines. These include the relevant provisions of the Banking Regulation Act, 1949, the Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies issued by the RBI on January 16, 2023, as well as the regulations issued by the Securities and Exchange Board of India (SEBI) and the Foreign Exchange Management Act, 1999, among others.
In addition, the RBI has advised Tata Asset Management Private Limited to ensure that its aggregate shareholding in DCB Bank does not exceed 7.5% of the bank’s paid-up capital at any given time. This measure aims to maintain a balanced and controlled ownership structure within the bank.
By forging this strategic partnership with Tata Mutual Fund, DCB Bank is set to enhance its position in the financial market and leverage the expertise and resources of Tata Asset Management. The collaboration between the two entities is expected to yield mutual benefits, fueling growth and delivering value to stakeholders.
With the regulatory green light now secured, DCB Bank and Tata Asset Management Private Limited can move forward with their plans, aligning their strategies and working towards achieving their shared objectives. The investment from Tata Mutual Fund is poised to strengthen DCB Bank’s capital base and provide additional impetus for its future expansion initiatives.
As the partnership between DCB Bank and Tata Mutual Fund takes shape, market observers will closely monitor the developments, anticipating the positive impact it will have on the banking sector and the broader financial landscape.
