Mumbai, July 29, 2006, Development Credit
Bank Limited, one of India’s
private sector banks promoted by the Switzerland-based
Aga Khan Fund for Economic Development (AKFED)
has continued to respond positively to turnaround
efforts.
For the year ended March 31, 2006, the Bank
had a net loss to Rs. 85.3 crores compared to
Rs.162.9 crores in the previous year.
During fiscal 2006, Net NPAs as a percentage
of Net Advances fell from 6.3% in fiscal 2005
to 4.5%. Provision for coverage of Net NPAs
has been increased from 53.7% in fiscal 2005
to 70.5% in fiscal 2006.
Further, in the quarter ended June 30, 2006,
the Bank has turned around and made a net profit
of Rs. 4.3 crores compared to a net loss of
Rs. 24.2 crores in the corresponding period
of the previous year.
As part of its efforts to strengthen the capital
base, the Bank had raised private equity capital
of Rs. 51.9 crores earlier in February 2006
and is now in the process of raising funds through
a public issue of equity shares.
