As part of its revamping strategy, Development Credit Bank (DCB) has chalked out some major plans in a bid to restructure its operations and boost its income. DCB plans to float a non-banking finance company (NBFC) to offer Islamic banking services in the next two years.
| DCB chalks out plans to restructure its operations and boost its income |
It plans to float an NBFC to offer Islamic banking services soon
To recover its bad assets, it plans to buy-out the SME-oriented non-performing loans of other banks
In a bid to use its expertise in recovering bad assets, it also plans to buyout the SME-oriented non-performing loans of other banks. For this, the bank may look at floating an asset reconstruction company (ARC) in the next two years to service the bad loans of the banking industry. DCBs managing director and chief executive officer, Gautam Vir said, We have gained the required expertise in recovering bad loans which is evident by the fact that we have cut down on our net non-performing assets (NPA) levels to 5% in November 2005 from 7% in 2004. Going forward, we plan to deploy this expertise to recover the SME oriented NPAs of other banks.
It targets at bringing down its net NPA levels to 2% from the current level of 5% in the next two years. Plans to grow its balance sheet size from Rs 4,000 crore to Rs 8,000 crores in the next two years are also on the anvil. Further, DCB also plans to increase its exposure to the SME segment and plans to venture into the micro-finance segment.