DCB eyes 40 percent growth in advances by FY'08

Tuesday, 14 August 2007, 07:00 Hrs
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Kolkata: Development Credit Bank (DCB), a private sector bank in India, targeted 40 percent growth in advances by the end of fiscal '08, said DCB chairman Nasser Munjee.

"We are expecting 40 percent growth in advances in the current financial year. Since India is witnessing tremendous growth in its economy and the growing investment in small and medium enterprises (SME) sectors is emerging we have also decided to take our preferred shareholders account from 3 billion to 6 billion net worth by 2007-08," Munjee told reporters here Monday.

He said that DCB would open 40 branches across the country in the next two years and about 25 branches would come up in rural locations. Presently DCB has 72 branches across India.

"DCB has already brought down its non-performing assets (NPA) to 1.5 percent and the bank is further targeting to reduce the figure below 1 percent by the end of current financial year," Munjee said adding that DCB's total business in terms of advances is 3 billion (3,000 crore) while the total deposited amount is 4.7 billion (4,700 crore).

DCB managing director and CEO Gautam Vir said the bank, which already has a strong presence in the western region, is now trying to penetrate into the overall India market with special focus on the East.

"We found significant opportunities in terms of investment in the IT and industrial sector in Kolkata. We have chosen Kolkata - the economic capital of the east - as the gateway to the entire region, including the Northeast," Vir said.

Talking about its retail business, Vir said that DCB was expecting its retail business to be 50 percent by the end of 2008. The bank will dilute its promoters' holding by 16.6 percent to 25 percent.

DCB opened up their third branch in Kolkata with state of the art facilities Monday. The first branch of the bank in Kolkata was opened in 1979.
Source: IANS
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