The Hindu Business Line : Development Credit Bank opens branch in Dharavi

Mumbai, Aug. 21 The Development Credit Bank (DCB) is looking to raise funds in the fourth quarter of the current fiscal or the first quarter of next fiscal, through the Qualified Institutional Placements route, said Mr Gautam Vir, Managing Director and Chief Executive Officer.

He was speaking at the inauguration of the bank’s new branch in Dharavi, Asia’s second largest slum.

Unbanked section

In the recent past, Dharavi has become an attractive destination for banks due to the large population of unbanked people there.

Indian Bank, Union Bank of India and Canara Bank have already set up branches in Dharavi in the past two years.

Mr Vir said the bank would provide products such as ‘no frills’ account and super saver account.

To provide easier access to customers, the branch would be open till 9 p.m. and the account statements would be available in five languages.

Around 6,000 accounts have already been opened with the bank’s Dharavi branch, said Mr Vir.

About interest rates, Mr Vir said the rates have not peaked and there could be further monetary tightening by the Reserve Bank of India.

The bank is also aiming to increase its CASA to 28-29 per cent from the current level of 26 per cent and its net interest margin to 3 per cent, from 2.8 per cent, by the end of this fiscal.

It is also aiming at a credit and deposit growth of 30 per cent.

DCB, which at present has 80 branches, has around 50 branch applications pending with the RBI.

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