New Delhi, Oct. 8: The Mumbai-based Development Credit Bank Ltd (DCB) is open to the idea of a strategic tieup with another bank but has no immediate plans for acquisitions.
The bank, which is partly owned and managed by the Agha Khan Fund, plans to come out with an initial public offering (IPO), subject to proper utilisation of Tier-II funds which amount to 160 crore.
At present, the bank’s retail operations consist of 27 ATMs and 60 branches (spread across eight states and two Union territories), employing around 1,000 people. It is now expanding the network by opening two new branches in Delhi.
The Aga Khan Fund for Economic Development has a 49 per cent stake in the bank; 7 per cent is held by Platinum Jubilee Investments and the rest is with individuals numbering over 50,000.
The bank has an asset base of Rs 3,700 crore and net worth of Rs 325 crore. Its net non-performing assets (NPAs) stood at 6.45 per cent (Rs 145 crore) against advances of Rs 2,200 crore for the year ended March 31 2002. The capital adequacy ratio stood at 11.5 per cent amounting to Rs 325 crore.
Bank officials said they expect the personal finance business to be a key source of its consumer banking profits following the expansion of the bank’s consumer banking division.
“We will have a robust growth in the personal finance division and concentrate on the upper-end of personal, education and housing loans respectively,” H. V. Sheshadri, the firm’s managing director told reporters. “Our efforts are to make DCB a one-stop financial services shop for our customers.”
Sheshadri also said the bank is currently more into corporate lending (medium and large-sized companies) and will concentrate on providing credit to small and medium enterprises.
The bank has marked its savings and current accounts into two categories as ‘Classic’ and ‘Premium’ respectively and classified its branches into Tier-I and Tier-II respectively.