Vijay C Roy
Tribune News Service
Chandigarh, May 26
Private lender DCB Bank will raise Rs 200-300 crore through qualified institutional placement (QIP) route in the third quarter of 2017-18 to fund its growth plans.
“We will raise Rs 200-300 crore in the third quarter of the next fiscal to fund loan growth,” said Murali M Natrajan, CEO, DCB Bank. Currently, the capital adequacy ratio of the bank is 14.11%.
The new-generation private sector commercial bank intends to double its total business in three years from Rs 19,119 crore it clocked at the end of FY16.
“The growth in total business will come on the back of expansion in branch network and new products.” he added.
At present, the bank has 201 branches across 18 states and two UTs. The bank intends to add 50-60 branches in this fiscal spread across Punjab, Madhya Pradesh, Orissa, Chhattisgarh etc. In Punjab, the bank has 10 branches and will add new branches at Patiala, Hoshiarpur, Moga and Sangrur.
He said the bank would continue its focus on lending to retail and SME segment. Mortgage has the biggest share of the bank’s loan portfolio (43%) followed by agri inclusive banking (17%), corporate banking (15%) and SMEs (12%). He said out of the total customers, 85% are self-employed.
He said the bank has also managed to address its bad loans, bringing down its gross NPAs to 1.51% and net NPA at 0.75% (as on March 31, 2016).
Meanwhile, the bank yesterday launched India’s first Aadhaar-based ATM-cum-debit card in Punjab that accepts the customer’s Aadhaar number and fingerprint impression for transactions.