A new generation private sector bank, Development Credit Bank (DCB) is the preferred banking services provider across 80 state-of-the-art branches across 10 states and two union territories. The Bank has recently launched several value added initiatives and intends to become one of the country’s preferred and profitable private sector banks, providing a comprehensive suite of “best in class” products for customers in Retail, SME and Corporate Banking market segments in chosen geographies.
DCB has deep roots in India since its inception in the 1930’s. Its promoter the Aga Khan Fund for Economic Development (AKFED) holds over 23% stake. AKFED is an international development agency dedicated to promoting entrepreneurship and building economically sound enterprises in the developing world. It had co-promoted HDFC in India in the late seventies. AKFED operates as a network of affiliates comprising 90 separate project companies. Employing over 30,000 people, it reported annual revenues in excess of US$1.5 billion. The Fund is active in 16 countries in the developing world.
Built on over 78 years of trust, tradition and togetherness, DCB was converted into a Scheduled Commercial Bank on May 31,1995, in the wake of India’s economic liberalisation. It was the only co-operative bank, which successfully crossed over and thrived in the face of change. The Bank has a network of 80 state-of-the-art, customer friendly, and conveniently located branches across the states of Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Delhi/ NCR, Rajasthan, Goa, Tamil Nadu, Haryana, West Bengal and the Union Territories of Daman & Diu and Dadra & Nagar Haveli.
Under the able guidance of an experienced Board of Directors and the leadership of a dynamic senior management team DCB strategically aims to enhance its reach and spread,while introducing exciting new banking products for its customers.
To adhere to its vision of becoming the gold standard in customer service in Indian banking, intensive training and service quality programmes have been initiated with customer delight becoming the key focus of the Bank. This will become the lifeblood of DCB and act as its key differentiator.
DCB intends to offer an extensive range of products across its branches. Suitable variants of the basic products like savings and current accounts as well as innovative products such as the ‘DCB Trio’ and ‘Easy Business,’ keep DCB ahead of the pack. Demat Account and a range of investment products like mutual funds, insurance and bonds make the product offering complete.
Since its inception, DCB has always taken an active interest in developing low-cost customer deposit products and providing for the needs of small and medium businesses in select regions. It continues to fulfil every consumer need with great enthusiasm. The Bank is also suitably equipped with the latest versions of Finacle from Infosys and Oracle to provide seamless service to its customers.
QUICK FACTS
- Emerging Private Sector bank with a balance sheet size of approximately Rs. 6400 crores.
- Network of 80 state-of-the-art branches, with access to more than 18,000* ATMs spread across the states of Maharashtra, Gujarat, Andhra Pradesh, Karnataka, New Delhi, Goa, Tamil Nadu, Haryana, West Bengal, Rajasthan, Union Territories of Daman & Diu and Dadra & Nagar Haveli.
- Dedicated staff of over 1800.
- SENIOR MANAGEMENT Mr. Murali M. Natrajan – Managing Director & Chief Mr. Anoop Prabhakar – Head – Corporate Banking
Mr. Prabhakar is an M Sc (Physics) from Delhi University and comes with 32 years of in-depth banking experience in Corporate & Retail Banking, Business Process Re-engineering, Stressed Assets Recovery and International Banking which also includes an international assignment of 3 years in the UK. In his last role, he was working as General Manager – Local Head Office (Chennai) at State Bank of India and was responsible for management of an extensive network of branches across Tamil Nadu and Pondicherry. Officer (CEO)Prior to joining DCB, Mr. Natrajan served as the Global Head for SME banking in Standard Chartered Bank. He was responsible for providing strategic context and business development capabilities to drive a distinctive and consistent business model across 27 markets in Asia, Africa and the Middle East. Mr. Natrajan joined Standard Chartered Bank, India to head the Mortgage & Auto Business. In November 2004, he was promoted as Head of Consumer Banking for India & Nepal overseeing business that include Mortgages, Wealth Management, Branches, ATMs, Credit Cards, Personal Loans and SME.
A Fellow Member of the Institute of Chartered Accountants of India, Mr Natrajan started his career with American Express TRS in India where he worked for 5 years in Business Planning, Finance and Operations. In 1989, he joined Citibank where he spent 14 years in various disciplines such as Operations, Credit, Finance, Product Management and Business Management of Consumer Banking. Prior to joining Standard Chartered Bank in October 2002, he had successful stints as Cards Business Director in Citibank India, Hong Kong and Indonesia.
DCB’s business segments are Retail, micro-SMEs, large SMEs, mid-Corporate, MFIs, Agriculture, Commodities, Government, Public Sector, Indian Banks,Co-operative Banks and NBFCs. DCB has approximately 600,000 customersDCB has strong business alliances with reputed financial institutions to provide value to customers. Some of the key alliance are: Birla Sun Life Life Insurance, ICICI Lombard General Insurance, India Infoline, Axis Bank, HDFC Bank, Wells Fargo (formerly Wachovia), Euronet, CMS Securitas Ltd., FIS, Venture Infotek, VISA, NFS, Cashnet, MCX, NCDEX and ICX, Bank of New York Mellon.
DCB has a strong management team and Board with Mr. Nasser Munjee a Chairman (worked in HDFC; instrumental in setting up IDFC; sits on the boards of many large Indian companies). Mr. Murali M Natrajan, appointed as the Managing Director & CEO April 29, 2009 (previously worked with Standard Chartered Bank, Citibank and American Express, in India and abroad). Strong Retail and SME experience. Previous assignment Global Headfor SME, Standard Chartered Bank
80 Branches in 28 Cities, Strong Presence in Western Region*DCB is tied up withEuronet in India. DCB customers can access VISA ATMs across the world Branches80DCB ATMs110*Network 35,000 +GOA Mapusa (1)
Margao (1)
Panaji (1)
Vasco –Da –Gama (1)GUJARATAhmedabad (4)Ankleshwar (1)Bhuj (1)Daman (1)Dediapada (1)Gandhinagar (1)Rajkot (1)Sidhpur (1)Silvassa (1)Surat (1)Vapi (1)MAHARASHTRA
Aurangabad (1)Mumbai & ItsSuburbs (28)Nanded(1)Nashik(1)Pune(4)ANDHRA PRADESH Hyderabad (8)Warangal (2)HARYANAGurgoan(1)KARNATAKA Bengaluru (4)NEW DELHIChandni Chowk (1)Connaught Place (1)Greater Kailash II (1)Kapashera Road (1)Kondli (1)Preet Vihar (1)RAJASTHANJodhpur (1)TAMIL NADUChennai (2)WEST BENGALKolkata (3)
Major Shareholders ( %)
AKFED & Platinum Jubilee Investment Ltd. (Promoter and Promoter Group)23.10.
AL Bateen Investment Co L.L.C.3.70
ICICI Prudential Life Insurance Company Ltd.2.93.
Bajaj Allianz Life Insurance Company Ltd.2.91
DCB Investments Ltd. (SVG Capital)2.65
Housing Development Finance Corporation Ltd. 2.02
Birla Sun Life Insurance Company Ltd. 1.96
Edelweiss Securities Ltd.1.51
Khattar Holdings Pvt. Ltd. 1.50India CapitalOpportunities1Ltd.1.41
TATA Capital Ltd.3.29
DCB planned exit of unsecured Personal Loans, Commercial Vehicles and Construction Equipment was replaced by secured Advances in MSME, SME, Retail Mortgages, mid-Corporate and Agri, Microfinance and Rural Banking
Balance Sheet has begun to grow in the last few months. Balance Sheet as on March 31, 2010 was Rs. 6,137 Cr.as against Rs. 5,943 Cr.as at March 31, 2009
Net Advances grew to Rs. 3,460 Cr.as on March 31, 2010 from Rs. 3,274 Cr.as on March 31, 2009
CASA book grew by 18%year to year. CASA ratio as on March 31, 2010 stands at 35.3%as against 30.9% as on March 31, 2009
Retail Deposits (Retail CASA and Retail Term Deposits) continuedto show good results. Retail Deposits were at 81.5%of Total Deposits as on March 31, 2010 as against 67.9%as on March 31, 2009
Net Interest Margin was at 2.79%for FY 2009-10 as against 2.86%for FY 2008-09
Unsecured Personal Loans portfolio substantially reduced and stood at Rs. 95 Cr.as on March 31, 2010 as against Rs. 330 Cr.as on March 31, 2009
DCB full year Net Loss for FY 2009-10 was Rs. 78 Cr.as against FY 2008-09 Net Loss Rs. 88 Cr.
Capital Adequacy Ratio (CAR) remained strong at 15.4%as on March 31, 2010 with Tier I at 12.4% and Tier II at 3.0% under Basel I. Under Basel II CAR was 14.9%as on March 31, 2010
Starting Q3, Aga Khan Foundation to cut holding through QIP, rights issue.
The Reserve Bank of India (RBI) has given the Aga Khan Fund for Economic Development (Akfed) time till March 2014 to lower its stake in co-operative-turned-commercial lender Development Credit Bank (DCB).
In line with RBI's move to promote diversified shareholding, Akfed, which holds a 23.11 per cent in the bank, has to lower its stake to 10 per cent.
A specific exemption is required for an entity to hold over 10 per cent in a private sector bank. DCB's application for an exemption has been turned down by RBI. It has not been granted branch licences since 2007 as it has failed to conform to the regulation.
The fact that DCB is the only loss-making commercial lender in the country, and has been in the red for the past five quarters, has also not helped its case for more branch licences.
Promoters of two other private sector lenders, IndusInd Bank and Dhanlaxmi Bank, both profitable, are also in breach of the 10 per cent cap. But, they were granted branch licences last year after they submitted roadmaps to reduce promoter stakes to within stipulated limits.
DCB Managing Director & CEO Murali Natarajan told Business Standard in an interview that the bank had already submitted a roadmap for dilution of promoter holding and was expected to begin the exercise through a qualified institutional placement or a rights issue in the third quarter of the current financial year. Akfed will not participate in the issue.
Besides, the bank is exploring the possibility of offering a strategic stake to long-term investors.
DCB has been weighed down by losses on unsecured personal loans, which accounted for up 34 per cent of the bank's loan portfolio at its peak in August 2008. Since then, the bank has stopped issuing fresh unsecured loans. It ran down its unsecured book to about Rs 88 crore as on December 31, 2009.
Natarajan is confident the bank will swing back to profits in the current financial year. "It's hard to get licences if you are not a profitable bank. We are keeping RBI informed about how the bank is progressing. So, once we start entering the positive territory, I don't think that problem will be there. The second issue is ownership, on which we have submitted a roadmap. So, over time, I expect that we should be able to get a few branch licences," Natarajan said.
DCB saw its promoter shareholding fall to 23.11 per cent from 24.86 after it placed Rs 88 crore fresh equity with institutional investors in November last year.
However, Natarajan said the bank would have to look at additional ways to reduce its shareholding.
"We can't keep raising capital to reduce promoter shareholding. There has to be an appropriate time for doing so. Investors will be interested only if there is a return that they can expect," said Natarajan.
Dubai-based investment fund Al-Bateen has a 3.7 per cent stake in the bank while Tata Capital and HDFC own 3.29 per cent and 2.02 per cent, respectively.
The bank's capital adequacy ratio as on December 31, 2009, was 16.9 per cent, while Tier-1 capital adequacy was 13.6 per cent.
Any idea about 1yr tgt of dis stock?
ReplyDelete200+
ReplyDelete