Budget 2001: A Primer

DCB has a capital base of 1,66,07,700 shares of Rs 10 each amounting to Rs16 crore; and Akfed earlier held 22,50,000 shares - 13.55 per cent of thetotal capital base. After the latest infusion of capital by Akfed, theshare-base has gone up to 2,29,73,100 shares of which Akfed will have86,15,400 shares or 37.50 per cent of the total capital base. The bank hasabout 55,000 shareholders.

Said DCB's chairman Naushad I Padamsee: "Akfed's decision continues a longhistorical linkage with the bank dating back to the 1960s when support andguidance from His Highness the Aga Khan enabled small co-operative banks(like Ismalia Co-op, Masalawala Co-op, Diamond Co-op, Citi Co-op etc,) tomerge and eventually form Development Cooperative Bank (DCB) in June 1981.

When the bank converted to a scheduled commercial bank in May 1995, Akfedresponded positively to shareholders' request to play a stabilising role asan institutional shareholder." "For DCB, the confidence shown by Akfed willmean a stronger company, more investment in technology and an ability togrow at a faster pace in this rapidly evolving and increasingly competitiveenvironment," said Mr Naushad, adding: "Akfed's proven commitment todevelopment will also assure our customers, employees and shareholders thatDCB has planned its future wisely"

Mr Naushad confirmed that the DCB board had approved the investment forwhich authorisation has already been received from the FIPB and the ReserveBank of India (RBI). DCB has converted as a joint stock banking company fromits old status of a co-operative bank in 1995.

It has a net worth of Rs 265.6 crore as on September 30, 2000. On the samedate, the bank's deposit and advances stood at Rs 3,031.8 crore and Rs1,513.3 crore respectively. It has posted a net profit after tax of Rs 16crore. The bank's NPA stood at 6.47 per cent and the capital adequacy ratio(CAR) stood at 12.25 per cent. The bank has a customer base of 4,30,000, andhas 53 branches all over India.