Exclusive | DCB Bank in talks to raise capital from private equity

Private sector lender DCBBank is in discussions with private equity investors for a potential capital infusion, according to sources familiar with the matter.

Sources told CNBC-TV18 that ChrysCapital is likely among the private equity firms in talks with the bank as it explores options to strengthen its capital base and support future growth plans. The stock extended gains to over 5% soon after the report.

The development follows DCB Bank's board approval to raise up to ₹2,000 crore, including up to ₹1,500 crore through equity issuance, giving the lender flexibility to tap investors when market conditions are favourable.

People aware of the discussions said the talks are at a preliminary stage and no final decision has been taken. The size, structure and timing of any potential investment remain under discussion.

Under current regulations, private equity investors can acquire up to a 9.99% stake in a bank with Reserve Bank of India (RBI) approval, making PE firms a potential source of growth capital for lenders looking to bolster balance sheets without significantly altering ownership structures.

A successful capital raise could help DCB Bank strengthen its capital adequacy position, support loan growth and enhance its ability to pursue business expansion opportunities amid rising competition in the banking sector.

CNBC-TV18 has reached out to DCB Bank and ChrysCapital for comment. Responses are awaited.

The discussions come at a time when investor interest in India's banking sector remains strong, with several lenders exploring capital-raising avenues to fund growth and meet evolving regulatory and business requirements.

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