)
Even as it opened its 145th branch in Vallabh Vidyanagar in Anand, DCB Bank Limited is aiming at 250 branches across India in next 3 years. The new branch at Anand is the bank’s 23rd in the state of Gujarat.
Talking about expansion plans, Murali M. Natrajan, managing director and chief executive officer of DCB Bank Ltd. said, “We are planning to open 30-35 new branches every year and are aiming at 250 branches in next 3 years. Our balance sheet size is Rs 13000 crore and the management is aiming to double the same in 3-3.5 years.”
Of the total balance sheet size, about Rs 9000 crore is that of loans and advances. According to Natrajan, Gujarat forms 10-11 per cent of the bank’s operations with roughly Rs 1000 crore worth deposits and Rs 900 crore worth loans.
The MSME and SME focused bank witnesses 40 per cent of its loans and advances going towards mortgages, of which most of it goes towards self-employed.
“Salaried clients form 20-25 per cent of our business. The key differentiation of DCB Bank is its customer focus on the self-employed segment. Almost 70 per cent of India’s population falls in this category. About 50 per cent of new branches have been opened in such tier 2-6 centers in a cluster format. Depending upon the business opportunity in a particular location, the Bank offers all of its products at all its branches,” said Natrajan.
In Gujarat, the bank has presence in cities like Ahmedabad, Vadodara, Bhuj, Vapi, Gandhinagar and Anand, even as it looks to open 50 per cent of its branches in tier 2-6 towns.
DCB Bank has grown advances (Loans) by 22-25 per cent steadily and overall intends to keep the pace of business unchanged. Gujarat is a focus region for the bank as it has thriving entrepreneurs and MSME & SME business.
The bank serves individuals, Micro-SME, SME, mid Corporate and Agri & Inclusive Banking segments. Under Agri & Inclusive Banking, loans for agri and agri processing activities as well as high tech farming, greenhouses, dairy loan, warehouse construction loan and loan against warehouse receipts have the potential to grow in the region.
Recently, the bank raised Rs 250 crore, thereby strengthening its capital adequacy which Natrajan said will help grow DCB’s books in the next 3-3.5 years.
