to raise capital by Rs 200 crore; no plans for IPO now
14 August 2003
Credit Bank (DCB) is planning to hike its capital by Rs
200 crore this year.
are in talks with various investment banks, exploring
ways to raise the capital. The plan is to raise Rs 125
crore through the tier-I capital and the rest through
tier-II," says DCB managing director and chief executive
H V Sheshadri.
40 per cent of the capital raised will be utilised to
clean up its assets book through a write-off, while 60
per cent will be utilised towards building branches and
ATMs. The bank plans to increase its branches from 63
to 76 and ATMs from 48 to 100 by the yearend.
bank has no immediate plan for an initial public offering.
"We have to wait for two-three years before floating
an IPO," says John Harris, the financial services
head of Aga Khan Fund for Economic Development, which
holds a 49-per cent equity stake in the bank.
Paris-based foundation has investments in several developing
and underdeveloped countries in financial and industrial
sectors. It also runs many welfare programmes in Africa
and South Asia to meet the educational and health requirements
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