DCB Bank plans to double its balance sheet size in the next three to four years, as it sharpens focus on retail and small and medium enterprise (SME) lending, Murali M Natrajan, Managing Director and Chief Executive Officer, said.
The private sector lender is eyeing 25 per cent annual growth in its retail and SME loan books to double its balance sheet from the current ₹16,500 crore, Natrajan told BusinessLine . Retail and SMEs account for about 80 per cent of the bank’s total loan book of ₹10,500 crore.
Digital driveTo achieve this, DCB plans to roll out a revamped digital offering (internet and mobile banking) to further ease transactions for its existing customers, he said.
Also, on the anvil is a mobile wallet to cater to the younger generation that has taken to smart phones.
For its retail customers, DCB plans to launch a credit card and offer personal loans in the next one year.
Natrajan, however, said the bank was not looking to aggressively grow its corporate loan book and may settle for an annual growth rate of about 15 per cent.
“The market is not good to give large-ticket loans and we have to be ultra cautious. Small banks have to be more careful than large banks. Our ability to absorb losses is limited,” he said.
DCB is not looking to raise tier-1 capital till December next year, but may, for the first time, go in for tier-II capital this fiscal, he added.