DCB turns around in Q1 FY 07 with a profit of Rs 4.3 crore

Mumbai, July 31 (UNI) Development Credit Bank Limited, a private sector bank promoted by the Switzerland-based Aga Khan Fund for Economic Development (AKFED), has turned around and made a net profit of Rs 4.3 crore for the quarter ended June 30, 2006 as compared to a net loss of Rs 24.2 crore in the similar quarter of the previous year.

Announcing the results, the Bank's press release said that it has continued to respond positively to turnaround efforts. As part of its efforts to strengthen the capital base, the Bank had raised private equity capital of Rs 51.9 crore earlier in February 2006 and is now in the process of raising funds through a public issue of equity shares.

The Bank had posted a net loss of Rs 85.3 crore for the year ended March 31, 2006 as compared to a net loss of Rs 162.9 crore in the previous year.

During fiscal 2006, Net NPAs as a percentage of Net Advances fell from 6.3 per cent in fiscal 2005 to 4.5 per cent, while provision for coverage of Net NPAs has been increased from 53.7 per cent in fiscal 2005 to 70.5 per cent in fiscal 2006.

Currently, DCB has 67 branches and 5 extension counters spread over nine States and two Union Territories in the country.

UNI SN PM AW1907