DCB to raise Rs 150-cr thru QIP

Development Credit Bank (DCB) plans to raise Rs 150-crore through a QIP by Q2 FY 12, a top bank official said today.

“We plan to raise Rs 150-crore through a QIP by the second-quarter of this fiscal (FY 12),” DCB’s Managing Director & CEO, Mr Murali Natrajan, told PTI here today.

Last year, market conditions were not conducive for capital-raising but with market conditions now improving, the bank planned to raise capital by Q2 this fiscal, he said.

The promoters holding, now at 23 per cent, would consequently decline to around 19.5-20 per cent, he said.

“We have told the Reserve Bank that we plan to bring down our promoters holding to 10 per cent by 2014 and we are on track to achieve that,” Mr Natrajan said.

The promoters holding has already come down to 23 per cent from 26 per cent following Rs 81-crore QIP in November 2009, he said.

On NPAs, the DCB official said that it plans to bring down its gross NPAs to around 3.5-4 per cent from the current 5.86 per cent. It’s net NPAs at present stand at 0.97 per cent.

The bank’s coverage ratio now stands at 87.64 per cent as against the RBI’s requirement of 70 per cent, he said, adding the bank has provided a 100 per cent provisioning for its personal loans.

The bank which posted a profit for the first time in two years in FY 11 at Rs 21.43-crore, said that its net interest margin (NIM) in FY 11 was a healthy 3.13 per cent.

“Over the next two quarters, however, this could decline to around 2.75-2.80 per cent as the full impact of the cost of increases in term deposits comes through,” Mr Natrajan said.

COMMENT NOW