Development Credit Bank (DCB), the private sector bank, announced that it has raised approximately Rs 2.5 billion of Tier I Capital through a recently concluded Qualified Institutions Placement (QIP). The board of directors of DCB Bank has approved the issue and allotment of 30,432,136 equity shares of face value Rs 10 each to eligible qualified institutional buyers (QIBs) at the issue price of Rs. 82.15 per equity share, aggregating to approximately Rs 2.5 billion.

As a result of the QIP the shareholding of DCB Bank's promoter will be reduced to approximately 16.43% from 18.45% as of Jun. 30, 2014.

Speaking on the QIP Murali M Natrajan, managing director & CEO of DCB Bank said, ''The capital raised will certainly help DCB Bank execute plans for growth in the near future. We are mindful of the responsibility to ensure secure and stable growth of the Bank. We sincerely thank our investors for their support''

Shares of the company gained Rs 1.65, or 2.02%, to settle at Rs 83.40. The total volume of shares traded was 149,981 at the BSE (Friday).