October 15, 2015

DCB Bank expansion plan spooks stock

A plan that will see Indian lender DCB Bank double its branches to 300 in a year is aimed at tackling increased competition and will not dent profits indefinitely, the bank said, brushing off investor jitters that sent shares tumbling on Wednesday.

Shares in DCB, one of India’s smaller private sector banks, fell by their maximum daily limit of 20 percent on Wednesday, a day after the lender said it planned to add more than 150 branches to its network within a year.

Its earlier plan had been to open up to 30 branches a year.

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