Mumbai: Development Credit Bank (DCB) plans to raise Rs 150-crore through a QIP by Q2 FY 12, a top bank official said on Wednesday.
“We plan to raise Rs 150-crore through a QIP by the second-quarter of this fiscal (FY 12),” DCB’s managing director & CEO, Murali Natrajan, said.
In 2010, market conditions were not conducive for capital-raising but with market conditions now improving, the bank planned to raise capital by Q2 this fiscal, he said.
The promoters holding, now at 23%, would consequently decline to around 19.5-20%, he said.
“We have told the Reserve Bank that we plan to bring down our promoters holding to 10% by 2014 and we are on track to achieve that,” Natrajan said.
The promoters holding has already come down to 23% from 26% following a Rs 81-crore QIP in November 2009, he said.
On NPAs, the DCB official said that it plans to bring down its gross NPAs to around 3.5-4% from the current 5.86%. Its net NPAs at present stand at 0.97%.
The bank’s coverage ratio now stands at 87.64% as against the RBI’s requirement of 70%, he said, adding the bank has provided a 100% provisioning for its personal loans.
The bank, which posted a profit for the first time in two years in FY 11 at Rs 21.43-crore, said that its net interest margin (NIM) in FY 11 was a healthy 3.13%.
“Over the next two quarters, however, this could decline to around 2.75-2.80% as the full impact of the cost of increases in term deposits comes through,” Natrajan said.