Business Daily from THE HINDU group of publications
Saturday, Sep 30, 2006

Cross Currency

Group Sites

Money & Banking - Private Banks
Markets - IPOs
DCB bets on IPO, draws up growth plan

Our Bureau

Hyderabad , Sept 29

Development Credit Bank (DCB), whose IPO to raise Rs 157-186 crore capital has opened, is pinning hopes on the offer for implementation of its revitalisation programme. "The IPO enables us to improve our capital adequacy ratio (CAR) to around 19.5 per cent from the existing 9.1 per cent," said Mr P.N. Vasudevan, Head (Consumer Banking Group).

"The additional capital provides a comfort level for future asset growth and also complies with regulatory requirements, including Basel-II. The business growth through quality assets enables us bring down the high level of NPAs."

Speaking to newspersons on Friday, he said that the emphasis of the revitalisation programme would be on prudent risk management, addressing the historically high level of NPAs, reducing operating expenses, improving low-cost consumer deposit products and strengthening the focus on three core businesses - consumer banking, commercial banking and treasury.

He added that the bank planned to roll out a strong bouquet of new retail loan products as part of the plan and significantly expand its retail loan portfolio, but refused to elaborate citing regulations of IPO.

As a part of the business strategy, DCB proposes to continues its focus on growing current and savings account (CASA) size to further lower the cost of funds. The focus would also be on growing term deposits to facilitate the creation of liquidity to fund balance sheet growth.

More Stories on : Private Banks | IPOs

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Taxing dividends of agricultural companies

Current account deficit doubles
Rupee ends flat
Forex reserves up $940 m
Satyam bags Punjab & Sind Bank deal
`Political space needed for financial reforms'
External debt jumps $6.9 b
Oil prices not too low: RBI
DCB bets on IPO, draws up growth plan
SBH business tops Rs 62,000-cr
Every family has bank a/c in Palakkad
Bank of Maharashtra branch in Vizag
Bond prices decline
Food credit down Rs 133 crore
Call rates jump to 7.4-7.6%
Banks resume mop-up through bulk deposits
IndusInd ties up with Doha Bank
SBI mobile ATM in Ahmedabad
Bank alliances, a positive development

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line