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DCB Bank

In response to the recent RBI rate cut, the bank has cuts its fixed deposit (FD) interest rates by up to 65 basis points.

DCB Bank, a private sector lender, has reduced its interest rates on fixed deposits (FDs) below Rs 3 crore for select tenures. The revised rates will come into effect on February 14, 2025. This move follows the Reserve Bank of India’s (RBI) recent reduction of the repo rate from 6.50% to 6.25%, the first such reduction since 2020. The decreased repo rate will lead to lower FD interest rates, and vice versa.

The revised FD interest rates range between 3.75% and 8.05% for general citizens and 4.25% and 8.55% for senior citizens, depending on the tenure. The highest interest rate, 8.05%, is offered for a tenure of 19 months to 20 months for both general citizens and senior citizens.

DCB Bank has reduced its FD interest rates by up to 65 basis points (bps) for select tenures. For general citizens, the bank has reduced the FD interest rate by 55 bps for tenures above 26 months but less than 37 months, and by 65 bps for tenures exceeding 38 months but less than 61 months. For senior citizens, the bank has cut the FD interest rate by 55 bps for tenures above 26 months but less than 37 months, and by 65 bps for tenures exceeding 38 months but less than 61 months.

The revised FD interest rates are as follows:

* For general citizens: 3.75% to 8.05% for tenures ranging from 7 days to 10 years.
* For senior citizens: 4.25% to 8.55% for tenures ranging from 7 days to 10 years.

Overall, the revised FD interest rates will affect individuals who are planning to invest in FDs below Rs 3 crore with DCB Bank. The reduced interest rates may lead to a decrease in the returns on investment, but they may also be more attractive to investors who are looking for a low-risk investment option with a fixed return.

DCB Bank Limited Receives Order from Assistant Commissioner of GST & Central Excise, Triplicane Division, Chennai on February 5, 2025 at 11:48 am EST

DCB Bank Limited has announced that it has been hit with a penalty of INR 8,655,031 by the Assistant Commissioner of GST & Central Excise, Triplicane Division, Chennai. The penalty is related to four fiscal years: 2017-18, 2018-19, 2019-20, and 2020-21, and 2021-22.

The penalty was imposed under section 74 of the Central Goods and Services Tax (CGST) Act 2017. The alleged violation committed by the bank is the non-reversal of ineligible input tax credits. This is a serious issue, as it is a requirement under the GST law to reverse or pay back any misused or ineligible input tax credits to the government.

The penalty imposed on the bank is substantial, amounting to INR 8,655,031. Additionally, the bank will also have to pay applicable interest on this amount, which is estimated to be INR 16,824,784. This means that the total financial impact on the bank is INR 25,479,815.

The penalty will likely have a significant impact on the bank’s financial and operational activities. The exact extent of the impact is difficult to quantify, but it is likely to be substantial. The bank will need to take immediate action to address the issue and rectify the violations to avoid further penalties and interest. The bank’s shareholders, customers, and employees will likely be affected by this development, and it will be important for the bank to provide a clear plan for how it intends to address the issue.

-Seize the opportunity now! Lock in high-yielding fixed deposits (up to 9%) while you still can, before rates decline.

The Reserve Bank of India (RBI) has recently lowered the repo rate by 25 basis points, which is expected to lead to a decrease in interest rates offered by banks on fixed deposits (FDs). As a result, FD investors have a limited window to book their FDs at the current higher rates before they start to decline. Small finance banks are offering the most competitive interest rates, with NorthEast Small Finance Bank and Unity Small Finance Bank offering rates of 9% for tenures between 18 months and 3 years. Private sector banks are offering rates ranging from 7% to 8.25%, with Bandhan Bank and DCB Bank offering the highest rates of 8.05% and 8.05% respectively. Public sector banks are offering the lowest rates, ranging from 7.3% to 7.5%, with SBI and PNB offering the highest rate of 7.25%.

For senior citizens, small finance banks are offering the highest rates, with NorthEast Small Finance Bank and Unity Small Finance Bank offering rates of 9% for tenures between 18 months and 3 years. Private sector banks are offering rates ranging from 7.5% to 8.25%, with Bandhan Bank and DCB Bank offering the highest rates of 8.05% and 8.05% respectively. Public sector banks are offering the lowest rates, ranging from 7.3% to 7.5%, with SBI and PNB offering the highest rate of 7.25%.

It is recommended that FD investors take advantage of the current higher rates by booking their FDs before they start to decline. The RBI’s rate cut is expected to lead to a decrease in interest rates offered by banks, making it a good time to invest in FDs.

YES Bank and DCB Bank raise FD interest rates up to 8.55%; check revised details

Several banks in India have revised their fixed deposit (FD) interest rates in January 2025 to attract more depositors. YES Bank and DCB Bank are the latest ones to join the bandwagon. The revisions come ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee meeting on February 7, 2025.

YES Bank has revised its FD interest rates for amounts below Rs 3 crore, with new rates effective from January 31, 2025. The bank offers annual interest rates between 3.25% and 8% for general citizens for tenures ranging from 7 days to 10 years. For senior citizens, the bank offers interest rates between 3.75% and 8.50% per annum.

DCB Bank has also revised its FD interest rates, effective from January 29, 2025. The bank offers interest rates between 3.75% and 8.05% on FD amounts below Rs 3 crore for general citizens for tenures ranging from 7 days to 10 years. For senior citizens, the bank offers interest rates between 4.25% and 8.55% for amounts below Rs 3 crore.

Other banks that have revised their FD interest rates include Union Bank of India, PNB, Axis, Shivalik Small Finance Bank, Karnataka Bank, and Federal Bank. These revisions aim to attract more depositors and compete with other banks in the market.

For investors, these revised interest rates offer better returns on their fixed deposits. With interest rates ranging from 3.25% to 8.55% per annum, investors can earn higher returns on their deposits. Additionally, senior citizens can earn higher interest rates than general citizens, making it a more attractive option for them.

Overall, the revised FD interest rates from these banks provide investors with more options to earn higher returns on their deposits.

Axis Securities recommends buying DCB Bank, with a target price of Rs 140.

Axis Securities has issued a buy call on DCB Bank, with a target price of Rs 140, which is higher than the current market price of Rs 119.95. The bank has reported a strong financial performance for the quarter ended December 31, 2024, with a standalone total income of Rs 1855.10 crore, a 4.63% increase from the previous quarter and a 23.85% increase from the same quarter last year. The bank’s net profit after tax was Rs 151.44 crore.

Axis Securities believes that DCB Bank is well-positioned to drive healthy growth, with strong demand visibility in its target customer segment. The bank is focusing on aligning deposit growth with credit growth, while maintaining a steady C-D Ratio. The management is also identifying NIM improvement levers, exercising stringent cost control, and making efforts to improve productivity.

The report highlights that there are no major asset quality challenges visible, and slippages are expected to remain under control. As a result, credit costs are expected to range within the guided range of 45-55bps. Axis Securities expects DCB’s return on assets (RoA) to improve to around 1% by FY26-27E, with a RoA delivery of 13-14%.

The current valuation of DCB Bank is 0.7x September 2026 estimated book value (ABV), which is considered reasonable. The report recommends a buy on DCB Bank due to its strong financial performance and growth prospects. The promoter’s holding in the company is 14.72%, while FIIs own 10.85% and DIIs own 27.89%.

Northern Arc’s partnership powers DCB Bank’s digital transformation of its lending services with its innovative nPOS solution.

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Northern Arc Capital, a diversified non-banking financial company (NBFC), has signed a Memorandum of Understanding (MoU) with DCB Bank, a commercial bank, to leverage Northern Arc’s nPOS platform to enhance and scale DCB Bank’s digital lending capabilities. The nPOS platform is a cloud-based, API-enabled solution designed to improve the efficiency of loan origination, underwriting, disbursement, and collection reconciliation processes.

The platform will enable DCB Bank to leverage business correspondent (BC) partnerships, direct assignment, and co-lending, as well as quickly onboard various non-banking financial companies (NBFCs) and streamline accounting, distribution, and reconciliation processes. The digital solution aims to provide a better customer experience, enhance lending capabilities, and reap the benefits of efficiency.

Praveen Kutty, Managing Director and CEO of DCB Bank, expressed excitement about the partnership, stating that it marks a significant step forward in enhancing product offerings for customers. Ashish Mehrotra, CEO and MD of Northern Arc Capital, noted that the partnership will accelerate the next phase of digital lending transformation, empowering banks like DCB Bank to optimize operations and strengthen their digital reach.

The MoU demonstrates the commitment of both parties to leverage emerging market opportunities, enhance technological capabilities, and introduce products that cater to a diverse customer base, including improving access to retail credit for businesses and households across India. The partnership is expected to strengthen DCB Bank’s position in the market and enhance its ability to adapt to the changing financial landscape.

FD Rates: Top banks are offering the highest returns on 400-day fixed deposits – find out where to invest your money for maximum yield.

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In India, fixed deposit (FD) interest rates vary across different banks, depending on the deposit amount, period, and age of the depositor. Private sector banks typically offer higher interest rates for shorter periods. This article highlights various FD schemes from public sector banks, private sector banks, and some individual banks.

Among public sector banks, the Central Bank of India offers the highest interest rate of 7.50% for FDs of 1111 and 3333 days. Punjab & Sind Bank and Bank of Maharashtra also offer high interest rates of 7.45% for 555 days and 366 days, respectively.

Among private sector banks, DCB Bank offers the highest interest rate of 8.05% for FDs of 19-20 months. RBL Bank and IndusInd Bank also offer competitive rates of 8% for 500 days and 7.99% for FDs of 1 year 5 months to 1 year 6 months, respectively. HDFC Bank, ICICI Bank, and YES Bank offer lower interest rates ranging from 7.40% to 7.75% for different periods.

State Bank of India (SBI) offers a maximum rate of 7.25% for 444 days under its Amrit Vrishti scheme. Other public sector banks, such as Bank of Baroda, Bank of India, and Union Bank of India, offer lower interest rates ranging from 6.50% to 7.30% for different periods.

In conclusion, fixed deposit rates in India vary widely depending on the bank, deposit period, and deposit amount. Individuals should research and compare the rates offered by different banks to choose the best FD scheme that suits their financial goals and needs.