DCB Bank has further strengthened its employee ownership initiative by issuing an additional 32,620 equity shares under its Employee Stock Option Plan (ESOP) on December 26, 2025. This latest allotment follows the bank's previous ESOP issuance in November, demonstrating continued commitment to employee participation in the company's growth.

Latest ESOP Allotment Details

The recent share allotment has been structured as follows:

Cumulative ESOP Impact

Combining both recent allotments, DCB Bank has significantly expanded employee ownership:

The bank's share capital has grown from 321,215,127 shares to 321,744,917 shares through these consecutive ESOP allotments, all maintaining a face value of ₹10.00 each.

Regulatory Compliance and Communication

DCB Bank has maintained strict adherence to regulatory requirements by promptly informing both BSE and NSE about this development. The communication, issued under reference number CO:CS:RC:2025-26:259, ensures compliance with Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Implications

The consecutive ESOP allotments reflect DCB Bank's strategic approach to human resource management:

Employee Engagement: The dual allotments within a short timeframe indicate the bank's strong focus on employee motivation and retention through equity participation.

Talent Strategy: In the competitive banking sector, these ESOPs serve as powerful tools for attracting and retaining skilled professionals.

Ownership Alignment: By expanding employee ownership, the bank aligns workforce interests with long-term organizational success and shareholder value creation.

Market Positioning: The systematic approach to employee ownership demonstrates DCB Bank's commitment to sustainable growth and employee welfare, potentially enhancing its reputation as an employer of choice in the banking industry.

DCB Bank has announced its highest ever quarterly profit of INR 184 crores for the second quarter of fiscal year 2026, marking a significant milestone in the bank's financial performance. The bank's earnings per share reached 5.84, reflecting strong growth and improved profitability.

Robust Growth in Deposits and Advances

The bank reported impressive growth in both deposits and advances:

This marks the fifth consecutive quarter of high growth for DCB Bank, demonstrating consistent expansion in its core banking operations.

Improved Net Interest Margin

Despite recent repo rate cuts, DCB Bank managed to improve its net interest margin (NIM) from 3.2% to 3.23%. This improvement was achieved through effective management of the bank's cost of deposits, which decreased by 16 basis points to 6.96%.

Credit Costs and Asset Quality

The bank maintained low credit costs at 31 basis points for the quarter, indicating strong asset quality management. Management expects full-year credit costs to remain below 45 basis points, suggesting continued focus on maintaining a healthy loan book.

Operational Efficiency

DCB Bank demonstrated significant improvements in operational efficiency:

• Reduced employee base by 9% (1,118 employees) while maintaining growth
• Cost-to-average assets declined to 2.43%, showing better cost management

Future Outlook

The bank's management has set targets for return on equity (ROE):

• FY27 ROE target: 13.5%
• FY28 ROE target: 14.5%

These targets indicate the bank's confidence in its growth strategy and operational improvements.

Co-Lending Book

The co-lending book currently represents 16.22% of total advances. Management plans to reduce this to below 15% by the end of the fiscal year, aligning with their strategy to focus on core lending operations.

DCB Bank's strong performance in Q2 FY26 showcases its ability to navigate a challenging economic environment while delivering robust growth and profitability. The bank's focus on operational efficiency, asset quality, and strategic growth initiatives positions it well for continued success in the coming quarters.