Mumbai, Aug 21 (UNI) Privately owned Development Credit Bank (DCB) visualises another increase in the interest rates by banking regulator Reserve Bank of India before the end of the current calendar year.
Stating that the interest rates have not peaked yet, DCB chief executive officer and managing director Gautam Vir told newsmen after the inauguration of the Dharavi Branch of the Bank here today that there would be more liquidity in the market with the Centre implementing the Pay Commission recommendations. This situation would continue to be there for some more time.
With a spread of 80 branches across the country and another 40 licences pending with the RBI, DCB was expecting a growth of around 30 per cent this fiscal and was earning more than 40 per cent of its revenue through fee bases services.
With the sluggish market conditions the Bank does not foresee any immediate requirement of raising capital in any mode. May be by the end of the last quarter or the first quarter the bank might go in for enhancing its capital, Mr Vir said, adding that he could not forecast the quantum as it would be driven by market conditions. The Bank was sitting pretty with a capital adequacy ratio of 13 per cent, he added.
He said that the credit market had become sluggish and this could be seen from reduction in auto loans and housing loans in view of the high interest rates.
Currently the Bank had a retail credit exposure of 45 per cent and an equal exposure to the corporate loans with the small and medium enterprises having a 10 per cent of the credit. The Bank would look to have a equal portion of distribution of loans to each of these sectors, he added.
On the Banking sector growth in the country, he said the real growth could be witnessed only if the public sector banks are privatised. Currently they have a 65 per cent of the total pie in the sector (down from 80 per cent).
Social activist and Magsaysay Award winner A Jockin, inaugurated the branch at Dharavi. The Branch would be working for 12 hours from 0900 to 2100 hrs, Mr Vir said.
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