Development Bank Advances Rise 44 Per Cent

Development Credit Banks (DCB) advances rose 44 per cent to Rs 624 crore, while its deposits grew 48 per cent to Rs 1,022 crore as on March 31, 1997.

The banks profit before tax increased by 20 per cent to Rs 31.6 crore, while profit after tax is estimated at over Rs 22 crore.

The banks net worth is estimated at Rs 190 crore and its capital adequacy at 25 per cent in the same period. DCBs priority sector advances as on March 31, 1997, were above 40 per cent for commercial banks and its net non-performing assets are estimated at 4.72 per cent of total advances.

The bank has retained the services of KMPG Peat Marwick for advising it in areas of business strategy, organisation structure and management control systems. The reports are presently being finalised. The bank is in for a major business expansion over the next five years. Accordingly, it expects to increase the number of branches from the present 36 to 80 in that duration.

The level of deposits at the end of the five-year period is projected as Rs 3,630 crore and that of advances at Rs 2,359 crore. The net profit of the bank at that stage is likely to be in the region of Rs 120 crore. DCB has already started several new lines of business like foreign exchange and international banking, merchant banking, financial services, equipment lease and hire purchase and also corporate finance and advisory services.