DCB targets 20-25% growth this fiscal

Development Credit Bank (DCB) is eyeing 20-25% growth in its balance sheet this fiscal, a top bank official said today.

"This year, we plan to grow our balance sheet at anywhere between 20-25%. Moving on from March 2012, we would like to step it up to a 30% kind of growth," DCB's Managing Director & CEO Murali Natrajan told PTI here today.

The bank plans to raise Rs 150 crore through a QIP within the next six months to reduce the promoters' stake, he said, adding that the promoters are not looking at a stake-sale to adhere to the Reserve Bank's 10% norm.

DCB, a private sector bank with 80 branches across 10 states and two union territories, was promoted by the Aga Khan Fund for Economic Development (AKFED) which holds over 23% stake.

The promoters holding, now at 23%, would consequently decline to around 19-20% post the QIP, he said.

The promoters holding has already come down to 23% from 26% following Rs 81 crore QIP in November 2009, he said.

Asked about the bank's expansion plan, he said, "We are in the process of approaching the Reserve Bank for more licenses. We are hopeful that in six months we should get some licenses."