DCB gets EGB nod for QIB issue of Rs 225 crore

Mumbai, Dec 15 (UNI) The Development Credit Bank today, at its Extraordinary General Meeting (EGM), obtained the shareholders approval to issue equity shares up to Rs 225 crore to qualified institutional buyers (QIB) on private placement basis.

It also cleared another proposal to increase the overall limit of foreign institutional investors(FII) from the existing 24 to 49 per cent.

In a post-EGM interaction with the media here, the Bank's Chairman Nasser Munjee said QIB issue will lead to a dilution of promoter's stake from 29.8 per cent to below 26 per cent.

It may be noted the Reserve Bank of India while giving its nod to initial public offering had stipulated that the shareholding of Aga Khan Fund for Economic Development S.A.(AKFED), the promoter, should be reduced to 10 per cent within one year from the date of listing of the equity shares in the IPO or March 31, 2007 which ever is earlier.

Replying to a question, Mr Munjee said the road show for the QIB issue will be held in January 2007. Responding to a query, he said that the bank plans to selectively relaunch some of its branches after fixing the problems there first. Recently, it did relaunch a branch in Hyderabad that made good impact in terms of increase in the number of customers, he said.

As against its earlier customers numbering 3000 in Hyderabad, Mr Munjee said, after the relaunch, the branch of the Bank could enhance the number to over 5000 customers within three weeks.

Dwelling on the branch expansion, the Bank's CEO&MD Gautam Vir said it has applied for RBI permission to open 16 more branches.

Currently, it has 72 branches including five extension counters, predominantly in Western India.

The new branches, Mr Vir said will come up in Gujarat, Maharashtra and Andhra Pradesh, with one branch each in Rajasthan and Uttar Pradesh.

Commenting on the balance sheet of the bank, Mr Vir said it seeks to enhance from Rs 4500 crore currently to Rs 10,000 crore by fiscal 2009.

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