DCB IPO price band fixed

Bangalore, Oct 3 (UNI) Development Credit Bank Limited, one of the private sector banks promoted by Switzerland-based Aga Khan Fund for Economic Development, has fixed the price band for its initial public offering of equity shares between Rs 22 and Rs 26 per share.

Speaking to newspersons here, Bank Treasury Chief Harihar K said the bank was entering the capital market with an initial public issue of 7.154 crore equity shares of Rs ten each. This issue was opened on September 29 and would close on October six. The issue comprised reservation of 25 lakh equity shares for eligible employees and the net issue to the public would be 6.89 crore equity shares. The issue would help the bank strengthen its capital base and meet its capital adequacy norms required by the Reserve Bank of India, he added.

He said the bank had a shareholder base of 53,000 now and a branch network of 72. The number of branches would be increased to 100 by 2008 by focussing on States like Rajasthan, Punjab, Andhra Pradesh and Haryana, he added.

On new products, Mr Harihar said the bank had plans to introduce secured loans on construction equipment and micro financing involving self help groups as part of its diversification plans.

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