Financial Daily from THE HINDU group of publications
Thursday, Mar 27, 2003
Financial Daily from THE HINDU group of publications Thursday, Mar 27, 2003 |
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Money & Banking
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Private Banks DCB plans retail focus in new fiscal Our Bureau
MUMBAI, March 26 DEVELOPMENT Credit Bank Ltd (DCB) is to change its focus from wholesale banking to retail banking in the new fiscal. "The bank's focus for the coming fiscal will be building retail assets. We will be going aggressively on auto, housing and personal loans,'' said Mr Sandeep Mookerjee, Head (Personal Financial Services), told newspersons on Wednesday. Most nationalised, private and foreign banks in the country have been increasingly concentrating on their retail business, which has seen phenomenal growth over the past two years. Currently, DCB's retail assets stand at just Rs 100 crore. "We want to scale it up to Rs 800-1,000 crore over the next 2-3 years,'' Mr Mookerjee said. The bank's retail liabilities stand at Rs 1,700 crore, while total liabilities are pegged at Rs 3,500 crore. Total assets are at Rs 2,500 crore. On raising the foreign direct investment (FDI ) level in the bank, Mr H.V. Sheshadri, Managing Director & Chief Executive, said: "The Finance Minister's initiative to raise FDI in private banks to 79 per cent is certainly an opportunity for us to evaluate. We will take things forward as the Banking Regulation Act is amended." The bank's FDI level currently touches the previous limit of 49 per cent, held by the Aga Khan Fund for Economic Development, an institution which supports economic development activities in the developing world. The FDI holding was increased from 37 per cent to 49 per cent in the current fiscal, bringing in Rs 23 crore. The bank has also announced a partnership with Infosys Technologies Ltd to implement Finacle, a core banking solution which will enable the bank to have a centralised back office. "Finacle, a software solution popular across the Indian banking industry, will make the bank more efficient and enable the launch of several new products,'' said Mr Girish G. Vaidya, Senior Vice-President and Head (Banking Business Unit), Infosys Technologies. The total cost of the technology project stands at Rs 40-50 crore to be spent over the next two years. The bank also plans to expand its branch network by another 100 branches up from 62 currently. It also has in the pipeline 100 onsite and 100 offsite ATMs, up from the existing 40.
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