DCB Bank 's Board of Directors has approved a significant amendment to the Bank's Articles of Association, specifically Article 140B, which pertains to the special position of Wholetime Directors. This change, subject to approval from the Reserve Bank of India and the Bank's shareholders, could alter the tenure dynamics for the Bank's top executives.

Key Changes in Article 140B

The amendment introduces a crucial modification to the retirement policy for Wholetime Directors:

This amendment grants the Board the flexibility to make Wholetime Directors liable for retirement by rotation, a practice common in many companies to ensure regular evaluation and renewal of leadership.

Implications of the Amendment

1. Enhanced Governance: The change allows for more frequent review of Wholetime Directors' performance and contributions.
2. Alignment with Market Practices: This move brings DCB Bank's policies closer to standard corporate governance practices.
3. Flexibility in Leadership: The Board gains more control over the tenure and succession planning for key executive positions.

Approval Process

The implementation of this amendment is contingent on two critical approvals:

1. Reserve Bank of India (RBI)
2. DCB Bank's shareholders

These approvals ensure that the change aligns with regulatory requirements and receives shareholder endorsement.

Conclusion

The amendment to DCB Bank's Articles of Association represents a significant shift in its corporate governance structure. By allowing Wholetime Directors to be subject to retirement by rotation, the Bank is adopting a more dynamic approach to leadership tenure. This change, once approved, could set a precedent for similar institutions in the banking sector, potentially influencing industry-wide governance practices.

As the Bank awaits regulatory and shareholder approval, stakeholders will be keenly watching how this change might impact DCB Bank's long-term leadership strategy and overall corporate governance framework.

DCB Bank Limited, a prominent player in India's banking sector, has recently announced its second quarter FY2026 results and completed a preferential share allotment to its promoter.

Quarterly Financial Results

DCB Bank announced its financial results for the second quarter of FY2026, reporting a Profit After Tax of ₹184 crores, marking an 18% increase from ₹155 crores in Q2 FY2025. The bank demonstrated strong growth momentum with both advances and deposits growing 19% year-on-year.

Key highlights of the Q2 FY2026 results include:

• Asset quality improvement with Gross NPA declining to 2.91% and Net NPA at 1.21% as of September 30, 2025.
• Provision Coverage Ratio stood at 74.15%.
• Capital Adequacy Ratio remained robust at 16.41% with Tier I at 13.97%.

Managing Director & CEO Praveen Kutty highlighted continued strong growth in deposits and advances, reduction in cost of deposits and borrowing leading to NIM improvement, and lower credit costs due to improved collections and recovery.

The results were approved by the Board of Directors on October 17, 2025, and were accompanied by a Limited Review Report from the bank's Joint Statutory Auditors, B S R & Co. LLP and Varma & Varma.

Preferential Share Allotment

DCB Bank completed a preferential allotment of shares to its promoter, Aga Khan Fund for Economic Development S.A (AKFED). The details of this transaction are as follows:

This preferential allotment was executed after receiving necessary approvals from the bank's shareholders and the Reserve Bank of India on September 29, 2025. The transaction was conducted in compliance with SEBI ICDR regulations and other applicable rules and guidelines.

Corporate Structure Update

DCB Bank has confirmed that as of September 30, 2025, it does not have any subsidiary, associate, or joint venture companies.

The bank's proactive disclosure of these developments aligns with its obligations under various regulations, including SEBI's Listing Obligations and Disclosure Requirements.