Financial Daily from THE HINDU group of publications
Friday, Jun 07, 2002
Financial Daily from THE HINDU group of publications Friday, Jun 07, 2002 |
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Money & Banking
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Private Banks DCB plans to raise Rs 60-cr tier-II capital Abhrajit Gangopadhyay
BANGALORE, June 6 DEVELOPMENT Credit Bank (DCB) plans to tap the tier II market to raise close to Rs 60 crore in the current financial year, the Managing Director and Chief Executive, Mr H.V. Sheshadri, said. However, the exact issue size is yet to be finalised as the bank enjoys "comfortable'' capital adequacy even as the issue seeks to enjoy the soft-interest regime, he added. The bank ruled out any possibility of inducting a strategic partner through equity sale at least "for next two-three years''. "There is no pressure on capital,'' Mr Sheshadri added. Close to Rs 27 crore was added to the reserves last financial year, he added. It can be mentioned that The Aga Khan Fund for Economic Development holds 37.5 per cent equity stake in the bank and eight per cent stake is held by Platinum Jubilee Investments Ltd. The remaining 54.5 per cent is held by several small investors. Meanwhile, under its new retail thrust, DCB plans to launch a co-branded credit card with Bank of India and has tied up with Mastercard. The bank also plans to issue debit cards in association with Maestro, Mr Sheshadri said. Select retail products like housing financing services will be rolled out in the current year to tap high-margins retail business, he added. The bank also plans to sell insurance products and plans to tie up with Birla Sun Life for life products and Tata AIG for general insurance. However, Mr Sheshadri feels that the new retail push will yield results only after "18-24 months''. He declined to detail expected earnings for the bank in the current financial year. The bank reported a net profit of Rs 34 crore over advances of Rs 2,259 crore and deposit of Rs 3,691 crore in 2001-02. In its technology drive to link up all its automated teller machines, the bank has hired switch from Financial Software Services and Wipro Ltd is helping in interconnectivity, Mr Sheshadri said.
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