Friday, 16 October 2015

Under fire from market, DCB Bank cuts branch expansion plan

Two days after announcing an aggressive branch expansion plan and seeing its stock getting hammered 30 percent, DCB Bank has decided to go slow on network expansion. On Wednesday, post the second quarter earnings announcement, DCB Bank Chairman Nasser Munjee had said the bank would double its branch network over the next 12-15 months. That triggered a flurry of downgrades from analysts who felt the move was risky and would impact return ratios, causing the stock to nosedive. "We have received feedback on our branch expansion plans from investors, analysts and other stakeholders," the latest DCB Bank release said. "In view of the feedback received, and in close consultation with our Chairman, the management team has decided to install 150 plus branches in a cautious, prudent and calibrated manner over a period of 24 months (instead of 12 months)," the release said.

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