Mumbai: Murali M. Natrajan was on Wednesday appointed managing director and chief executive officer of Development Credit Bank, which is promoted by the Aga Khan Fund for Economic Development, or Akfed.
The position has not been filled since January, when then MD and CEO Gautam Vir quit. Murali was until now head of consumer banking for India and Nepal and takes over at a time when the bank is saddled with stressed assets in its retail business that are eroding its profitability. DCB’s gross non-performing assets, or NPAs, have more than tripled in the first three quarters of the current fiscal year — from 1.5% in April to 4.7% in December 2008.
The bank will announce its fourth quarter results for the year ended 31 March only on 16 June. It suffered a net loss of Rs3.22 crore for the quarter ended December 2009, compared with a net profit of Rs1 crore in the second quarter of the fiscal year and Rs5.44 crore net profit in the first quarter.