Development Credit Bank (DCB) is looking at increasing its foreign direct investment (FDI) holding from 37.5 per cent to 49 per cent. DCB's plan follows a similar proposal by ING to increase its stake in Vysya Bank to around 44 per cent.
The Aga Khan Fund for Economic Development holds 37.5 per cent in DCB. H V Sheshadri, managing director of DCB, said: "The bank has shortlisted few investors. These will not be strategic tie-ups. The regulatory environment currently permits it." The board will take up the issue after its annual general meeting on September 30.
The other major investor in the bank is Platinum Jubilee Investments, which holds 8 per cent, while the balance is spread among 55,000 shareholders.
Also Read
The Reserve Bank of India had earlier in the year allowed FDI up to 49 per cent in private banks.
DCB and Tata AIG General Insurance Company today announced a tie-up for distribution of general insurance products. The bank will offer its existing customers a free 'Thank You Personal Accident' insurance cover of one lakh rupees up to three months. The bank is also offering its customers an upgrade from the free personal insurance cover to an insurance cover of up to Rs 20 lakh for a year.
According to Dalip Varma, managing director, Tata AIG General Insurance Company, the banccassurance is a very important tool as it is much easier for banks to distribute insurance products.
Tata AIG had clocked a premium income of Rs 82 crore as on March 31,2002 which it has exceeded in the first five months of the current fiscal. The premium income in the first quarter was around Rs 62 crore. The company expects this to exceed Rs 180-185 crore in the current fiscal.
Sandeep Mookerjee, DCB's head of personal financial services, said the bank is looking at retail liabilities and also some retail assets. "We will also look at some investment products. We will concentrate on housing and personal finance and not on car finance where the spreads are very low," he added.
Sheshadri said the bank is looking at alliances with other banks for using their ATM network.