ChrysCap to pay Rs 55 a share for 12% in DCB

ChrysCapital, the private equity investor, will pick up a 12 per cent stake in Development Credit Bank (DCB) for Rs 38 crore, at Rs 55 per share through a preferential allotment.

DCB managing director H V Sheshadri said the Reserve Bank of India's approval is awaited for the allotment.

Following the stake sale, the Aga Khan Fund for Economic Development, which is the principal shareholder in the bank, will maintain its holding at around 47 per cent.

DCB chief financial officer Yogesh Chadha said the fund had infused $10 million in the last financial year. With the ChrysCapital deal, the foreign stake in the bank will be around 60 per cent.

The bank's total deposits as on March 31, 2004, stood at Rs 4,500 crore against Rs 3,657.09 crore in the corresponding period last fiscal. Total advances were at Rs 2,500 crore against Rs 2,488.37 crore in March 2003.

The capital adequacy of the bank, as on March 31, 2004, was 14 per cent against 10.08 per cent in the preceding year. Net non-performing assets (NPA) as on March 31, 2004, dipped to 4.7 per cent against 7.76 per cent last year, said Sheshadri.

DCB had recovered assets over Rs 40 crore in the current fiscal, he added.

The bank plans to increase the size of its retail asset book to 40 per cent over three years, he said.

Currently, it contributes about 10 per cent of the total asset base. The bank has set up seven retail asset offices across the country.

To widen its retail portfolio, the bank launched its international debit card on May 24. The bank also plans to launch its home loan product and educational loan by June end. While the consumer durable loan product will be launched in select centres, Sheshadri said.