The Hindu Business Line : Retail focus helps DCB up margins

Speaking at a press conference hereon Wednesday, the DCB Managing Director and Chief Executive Officer, Mr Gautam Vir, said, “Our NIM will top three per cent by March this year.” For the last quarter, DCB’s NIM was 2.7 per cent.

He said that the improvement in the NIM was mainly on account of better asset yields.

Asset yields were 12 per cent, which is among the highest in the banking industry. This, he said, was largely driven by the retail focus. Retail assets accounted for about 55 per cent of the bank’s advances, he said.

He said that the bank was also focused on small and medium enterprises with turnovers under Rs 500 crore. “We are also nurturing corporates that are in the Rs 100-200 crore currently,” he said.

Referring to commercial vehicles sector, where the bank has a substantial exposure, he said, that DCB had not faced any slowdown in credit off take.

High cost

He said one of the major concerns of the bank was the high cost of working funds at 7 per cent. Mr Vir said that the bank was now growing its current and savings account (CASA) deposits.

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