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DCB Bank gains on value buying; adds over 57% YTD

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Capital Market
Last Updated : Dec 26 2022 | 12:31 PM IST

DCB Bank advanced 4.96% to Rs 123.80, as value buying emerged at lower levels.

In the past four sessions, the stock had declined 11.85% to end at Rs 117.95 on Friday (23 December 2022), from its recent closing high of Rs 133.80 recorded on 19 December 2022.

On a year-to-date (YTD) basis, the stock has gained 57.54% while the benchmark Sensex has added 3.88% during the same period.

On the technical front, the stock's daily RSI (relative strength index) stood at 46.852. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On daily chart, the stock is trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 119.58, 108.16 and 94.07, respectively.

CRISIL Ratings has assigned its 'CRISIL AA-/Stable' to the Rs 300 crore Tier II bonds (under Basel III) of DCB Bank and reaffirmed its 'CRISIL AA-/Stable/CRISIL A1+' ratings on the existing debt instruments of the bank.

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The credit rating agency said that the ratings continue to reflect the bank's healthy capitalisation and established market position in the small and medium enterprise (SME) segment, driven by an established track record of sustainable and calibrated growth in advances, comfortable asset quality and stable management team.

These strengths are partially offset by the moderate earnings profile, which may remain muted in the near to medium term, average resource profile with relatively lower share of CASA deposits, and the modest scale of operations in the overall banking system.

DCB Bank was incorporated in 1995, by reconstituting the Development Co-operative Bank Ltd (DCBL) to Development Credit Bank Ltd as a joint-stock banking company. In 2014, it got its present name. DCBL was set up in 1981, by amalgamating Ismailia Co-operative Bank Ltd with Masalawalla Co-operative Bank Ltd. AKFED and its Indian associate, Platinum Jubilee Investments, are the largest shareholders in DCB Bank, with combined stake at 14.85% as on September 30, 2022. DCB Bank had 410 branches as on 30 September 2022.

For the half year ended 30 September 2022, the bank's PAT was Rs 210 crore on total income (net of interest expense) of Rs 977 crore compared with Rs 99 crore and Rs 851 crore, respectively, in the corresponding period of the previous fiscal.

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First Published: Dec 26 2022 | 12:17 PM IST

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