DCB Bank Limited, a prominent player in India's banking sector, has successfully raised INR 82.99 crore through a strategic preferential share allotment to one of its promoters, the Aga Khan Fund for Economic Development S.A. This move marks a significant step in strengthening the bank's capital base and enhancing its financial position.

Key Details of the Share Allotment

The bank's Board of Directors approved the allotment of 60,58,394 equity shares. Here are the crucial aspects of this transaction:

Impact on Share Capital

This preferential allotment has led to a notable increase in DCB Bank's paid-up equity share capital:

Regulatory Compliance and Share Status

The preferential allotment was conducted in full compliance with the applicable provisions of the Companies Act, 2013, and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The newly allotted shares will have equal ranking with the existing equity shares of DCB Bank and are set to be listed on both the BSE Limited and the National Stock Exchange of India Limited, pending necessary approvals.

This capital infusion is expected to strengthen DCB Bank's financial position, potentially enabling it to expand its operations and improve its market competitiveness. As the banking sector continues to evolve, such strategic moves could play a crucial role in shaping the bank's future growth trajectory.

DCB Bank , in collaboration with fintech platform ZET, has introduced a groundbreaking co-branded secured credit card on the RuPay network. This innovative financial product aims to bridge India's credit gap by targeting first-time borrowers and underserved customers.

Key Features of the DCB Bank-ZET Secured Credit Card

Addressing India's Credit Gap

The partnership between DCB Bank and ZET comes at a crucial time for India's financial landscape:

• Nearly half of Indian adults remain outside the formal credit system
• Only about 90 million credit card users in a credit-eligible population of over 400 million

Advantages of the Secured Credit Card Model

For Banks

• Risk mitigation through fixed deposit collateral

For Customers

• Accessible entry point to formal credit

Market Reach

• Digital onboarding through ZET enables penetration into smaller towns and semi-urban markets

This innovative approach to credit card issuance could potentially revolutionize access to formal credit in India, especially for those who have been traditionally underserved by the banking sector. By combining the security of a fixed deposit with the flexibility of a credit card, DCB Bank and ZET are offering a unique solution that could help millions of Indians build their credit history while enjoying the benefits of modern digital banking.

As the financial landscape continues to evolve, such partnerships between traditional banks and fintech platforms may become increasingly common, driving financial inclusion and expanding access to credit across India.