DCB Bank Receives RBI Approval to Sell 7.5% Stake to Tata Mutual Fund

DCB Bank has announced that it has obtained approval from the Reserve Bank of India (RBI) to sell a stake of up to 7.5 percent in the bank to Tata Asset Management Private Limited (TAMPL). The acquisition of the stake will be facilitated through the schemes of Tata Mutual Fund. The approval granted by the RBI is valid for a period of one year, commencing from July 5, 2023, as stated in a regulatory filing by DCB Bank.

However, DCB Bank emphasized that the RBI approval is contingent upon complying with various regulations and provisions. These include the relevant provisions of the Banking Regulation Act, 1949, the Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies issued by the RBI on January 16, 2023, as well as the regulations issued by the Securities and Exchange Board of India and the Foreign Exchange Management Act, 1999. The bank is obligated to adhere to all applicable guidelines, regulations, and statutes.

In addition, the RBI has advised TAMPL to ensure that its aggregate shareholding in the bank does not exceed 7.5 percent of the bank's paid-up capital at any given time. This recommendation serves as a precautionary measure to maintain a balanced and controlled ownership structure within the bank.

The approval from the RBI marks an important step in the process of selling a stake in DCB Bank to TAMPL, and both parties will need to abide by the regulatory requirements outlined by the RBI to proceed with the transaction.