Development Credit Bank Ltd (DCB), which was converted from a cooperative bank to a private sector commercial bank in May 1995, on Tuesday in New Delhi has announced the launch of retail banking products like Anywhere Banking, Phone Banking and DCB BillPay.
With a deposit base of Rs 3,700 crore as on March 31, 2002, the bank as part of its strategy to rapidly expand and focussing on retail-banking segment has also announced the completion of re-engineering of its business processes across its branches.
The bank with a network of 27 ATMs and 60 branches has been striving hard to change from the cooperative bank culture to a marketing-oriented bank. The bank, which launched two new branches in Delhi, has plans to increase the number of branches to 70 by the end of the current fiscal, said DCB's managing director HV Sheshadri.
"The marketing has to be pushed to the hilt and lot of catching up has to be done. Two key aspects would be improving services and building up a youthful team," DCB's chairman Naushad Padamsee said while addressing the media here.
Responding to a query on the possiblilty of an initial public offering (IPO), Mr Padamsee said that the bank does not have any plan to tap the public in the near future.
"We have a comfortable capital adequacy ratio of around 11.5 per cent. With a networth of Rs 325 crore, we have enough room for raising the tier-II capital, which could be in the region of Rs 150-160 crore," he said.
The business process engineering exercise in the bank's branches, which has a customer base of Rs 5 lakh and advances of Rs 2,200 crore, is aimed at simplifying and standardising the services and processes.
The bank has a high level of non performing assets (NPAs). As on March 30, 2001, gross NPAs were 9 per cent of gross advances which amounted to Rs 215 crore. Net NPAs stood at 6.4 per cent (Rs 145 crore).