Development Credit Bank Limited (DCB), a new generation private sector bank, has raised Rs 61 crore of Tier I capital through the recently concluded QIP.This issue further enhances the capital adequacy (CRAR) position of the Bank which was already at 15.9% as on Sept 30, 2009 (12.5% in Tier I and 3.4% in Tier II).
While commenting on the capital raising Mr. Murali M Natrajan, Managing Director and CEO of DCB said, “In the last 6 months, we have made step-by-step progress in tackling provision and NPAs especially in the unsecured personal loans segment. We have also been able reduce the overall costs of the Bank. We are now concentrating on growing secured assets in Retail, micro SME, SME and mid Corporate business segments. The capital raised will strengthen our balance sheet and facilitate growth.”
After the QIP, the promoter, Aga Khan Fund of Economic Development (AKFED) Groups’ holding in DCB will come down to 23.11 % from 26.22% at present. Over a period of time, the Bank intends to have a select few long term investors who along with AKFED will support the DCB’s growth strategy and mission.
