DCB Bank, formerly Development Credit Bank, will soon move the RBI to seek a fresh roadmap for diluting the promoter stake to the prescribed limit of below 10%. RBI had fixed March 2014 for DCB to pare promoter stake, which is currently at 18.46%.
Speaking to FE on sidelines of a branch-opening in Chennai on Wednesday, Murali M Natrajan, MD & CEO of DCB Bank, said the lender was planning to approach the RBI for revising the roadmap on diluting the promoter stake. ?Consultations are on and we will move the regulator with the plea that the deadline be extended as it is impossible to meet it because of current market conditions. I am confident RBI would give us more time considering our track record,? said Natrajan.
Giving details on how the bank had gradually brought down the promoter stake in a phased manner, he said that in 2009, the promoter holding was around 26%, which was brought down to 18.5 % by infusing fresh capital from other investors.
?In the current circumstances, I think for the next 12 to 15 months at least, it is not viable to take any move on diluting the stake,? said Natrajan.
Currently, holding of the promoter, AKFED (Aga Khan Fund for Economic Development and PJI ? Platinum Jubilee Investment), is 18.46%. The remaining stake is held by other investors, which include PE fund Tano Mauritius India FVCI II (4.76%), WCP Holdings III (4.69 %), Ambit Corporate Finance (4.21 %), South Indian Bank (3.42 %), Tata Capital Financial Services (2.63 %), TVS Shriram Growth Fund India (2.51 %) and others.
He said over the next three years or so, the bank has set a target to double the balance sheet from the current R12,000 crore to R24,000 crore.