Development Credit Bank to raise Rs 300cr for expansion

Launches new current account for small traders

To fund its expansion plans, Development Credit Bank (DCB) will be tapping the capital market for Rs 300 crore.

Addressing a press conference at the launch of M-Power current account of the bank, P N Vasudevan, head consumer banking group, DCB, said the bank had filed its red herrings prospectus with the Securities and Exchange Board of India (Sebi) and was awaiting the regulator nod to tap the capital market.

After the bank's initial public offering, the Aga Khan Fund for Economic Development (AKFED), which is the largest shareholder with 69 per cent, will be diluted to 33 per cent. Currently, the remaining 31 per cent is held through private placement.

"Our growth focus will continue to be trade, small and medium enterprises businesses," he added. Vasudevan also said that the bank's major thrust would be on acquiring a large customer base.

At present, DCB has about 4.5 lakh customers and plans to add 10,000 new accounts every month during the current financial year. The bank has 72 branches.

The bank has launched a new current account, called M-Power, keeping the small traders and businessmen in mind. This account will allow the customer to access a host of free services and facilities of a current account without the hassle of maintaining the average quarterly balance.

Hence, there would not be any minimum balance requirement for this account. However, it will require an annual fee and the customer can enjoy fee facilities such as any branch banking, international debit card, free demand draft up to Rs 50 lakh among others.