Strategies Of Dcb Bank Essay

2439 words - 10 pages

Strategies of DCB Bank
By J Abinaya Infanta
F13001

Overview of the Bank:
DCB Bank- at a glance:
* DCB Bank Limited (formerly Development Credit Bank Ltd. ) is a modern emerging new generation private sector Bank. Present since 1930s DCB is the only co-operative bank in India to have been converted into a private sector commercial bank in 1995.
* Strong presence in Andhra Pradesh, Gujarat and Maharashtra resulting in sticky customer deposits from traditional customers. New branch expansions in Madhya Pradesh, Odisha, Punjab Rajasthan.
* Distribution network of 130 branches across 80 locations and 238 ATMs
Comprehensive product range & scalable infrastructure :
* ...view middle of the document...

Coverage ratio of 79.64% as on September 30, 2010
* Reduction in cost base
* Implementation of new business strategy resulting in steady balance sheet growth
* Launch of new deposit products
* Increase in CASA and retail term deposits to lower cost of funds and improve NIMs
* Rating upgrades
* Strengthening of Credit, Operations and Internal Audit
* Leaner organization structure, improvement in staff morale and retention
* Raising of Tier I (INR 810 mn) and Tier II (INR 650 mn) capital in FY10 to support growth in advances

Business Strategy:
* Grow Retail, micro SME, SME, mid- Corporate and Agri / Microfinance with a “customer centric approach”. Concentrate on secured lending & diversified portfolio
* Treasury – Liquidity management, opportunity for gains within acceptable risks
* Relentless focus on Costs / Income Ratio and Service
* Stringent mechanism for managing Credit and Operational risks
* Continuously improve people quality and delivery
* Retail – branch centric
* Low cost deposits (CASA / Term)
* Secured lending (Home loans, Loan against property, Loan Against Term
* Deposit (LATD)
* Micro SME
* Traditional customer base
* Third party fee income

Comparison of Q3 FY 2013-14 vs Q3 FY 2012-13
(a) Profit After Tax (PAT) for the quarter at Rs. 36.36 crores was 35% higher than PAT of Rs. 26.91 crores in Q3 FY 2012-13.
(b) Total Income grew to Rs. 126.81 crores which was 26% increase over Rs. 100.92 crores earned in corresponding quarter of previous year.
(c) Over the same period, Net Interest Income grew by 31% to Rs. 93.97 crores from Rs. 72.00 crores.
(d) Non Interest Income for the quarter was Rs. 32.84 crores which was 14% higher than Rs. 28.92 crores earned in Q3 FY 2012-13. Within this, Commission, Exchange and Brokerage (Core Fee Income) grew by 20% to Rs. 26.66 crores as against Rs. 22.22 crores earned last year.
(e) Operating Cost for the quarter was Rs. 80.45 crores as compared to Rs. 69.15 crores in corresponding quarter of previous year, growth of 16% after accommodating branch growth to 115 branches as compared to 89 branches as at December 31, 2012.
(f) GNPA (Gross Non Performing Assets) ratio has reduced to 2.77% from 3.80% as at end of Q3 FY 2012-13 and over the same period, NNPA (Net Non Performing Assets) Ratio has remained steady at 0.77% as compared to 0.74%.
(g) Advances have grown by 23% to Rs. 7,361 crores as compared to Rs. 5,964 crores as at December 31, 2012.
(h) Deposits have grown by 27% to reach Rs. 9,592 crores from Rs. 7,558 crores as at end of Q3 FY 2012-13. Within this, NRI Deposits have grown by 63% to reach Rs.739 crores from Rs.454 crores as at end December 31, 2012.
(i) NIMs for the current quarter are at 3.55% as compared to 3.38% in corresponding quarter of FY 2012-13.
(j) CASA ratio was 24.80% as compared to 28.87% as end December 31, 2012.
(k) On an annualized basis, ROA has improved...

Other Essays Like Strategies of Dcb Bank

Swot Analysis

1478 words - 6 pages , and plans are developed. * Finally the monitoring of results plans are put into place, also the plans for correcting plans that are not up to par, and this may lead to amending the banks objectives, and strategies. The bank of America can do SWOT analysis on its competitors for marketing purposes to discover their strengths and weaknesses. The banks marketing managers will use this tool to examine their Competitor’s cost structure

Car Fight Essay

2607 words - 11 pages , Assistant Commissioner of Police, D-1(South), DCB, CID, Mumbai. Source 3: "Battle for Mumbai ends, death toll rises to 195," The Times of India, 2008-11-29 http://timesofindia.indiatimes.com/Battle_ends_in_Mumbai_death_toll_rises_to_195/articleshow/3771119.cms Retrieved 9/7/10 Source 4: "Nariman secured, Taj ops on," Tara TV, 11/28/08 http://www.taratv.com/national.php?task=full&newsid=4384 Retrieved 9/7/10 * Totals do not include the nine

Business Methods

2579 words - 11 pages INDIAN FINANCIAL SYSTEM (IFS) – 3RD ASSIGNMENT 1. WHAT ARE MUTUAL FUNDS? -Mutual funds are investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks, bonds, or other securities that might be difficult to recreate on your own. This is often referred to as a portfolio. The price of the mutual fund, also known as its net asset value (NAV), is determined by the total value of the

Marketing Strategies of an Organization and Its Effectiveness

660 words - 3 pages RESEARCH PROPOSAL Research Topic: Marketing Strategies of an Organization and Its Effectiveness. Using United Bank for Africa as a Case Study It’s been discovered that every type of organization both small and large need marketing to survive and continue in business into the foreseeable future. Even though marketing may not be the reason why an organization was established but it stands at the core of business activities. Every

Banking Industry in Bangladesh

3120 words - 13 pages year’s success, but also taking initiatives to improve. Accountable Corporate Governance is very important for the bank and NRB Commercial bank has a strong board of directors, as the apex level of authority, is responsible and accountable for the overall direction and is ultimate answerable to regulatory authorities and shareholders for the activities, strategies and performance of the company. Weaknesses NRB Commercial bank currently don’t

Pestle C of Planters Bank

1055 words - 5 pages CASE ANALYSIS STEP 1 IDENTIFY THE FIRM’S EXISTING VISION, MISSION, OBJECTIVES AND STRATEGIES This is the current vision and mission statement of our bank. VISION: We help fulfil the dreams of Filipino SMEs, their families and their communities MISSION: We are the total bank for SMEs. We customize

Islamin Financial System

1280 words - 6 pages process of economic development. They collect savings of large masses of people scattered throughout the country, which in the absence of bank would have remained idle and unproductive. These scattered amounts are collected, pooled together and made available to commerce and industry for meeting the requirement. Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Shariah) and

An Investigative Report Demonstrating The Extents In Which Bank Of The Bahamas Went Through In Order To Survive During The Recession

2731 words - 11 pages strategies to be able to survive. However, in my opinion what sets aside Bank of The Bahamas from many other banks and businesses that are shutting down is that they are not afraid to take risks. I believe that’s the key in many successful businesses around the world. Examples of businesses that take risks are Toys ‘R’ US, VeraSun Energy, and J.P Morgan Chase. Conclusion The main purpose of this investigative study was to demonstrate the

Kcb Group Profile

5634 words - 23 pages organisation * Continue to be a profitable Bank and make decent returns to our shareholders * Provide leadership in terms of corporate governance practices and standards as well as support for needy communities through the KCB Foundation. Present strategies KCB has been in the frontline of reforming how it deals with its customers who started in earnest in 2003. These reforms have been linked to customer confidence, which have improved

Santander

2637 words - 11 pages strategies to operate and manage their bank. From research knows the heart of the bank strategy that is through simple, personal and fair banking to help people and businesses prosper. As well as the bank make some strategies to get this purpose. 1. Definitions of strategy and their application to Santander From the perspective of the future development of the business point of view, the performance of a strategic plan, and from the perspective

Mexico and The World Bank: Rebuilding a Country

1829 words - 8 pages in the Latin American department, so I will have the opportunity to deal very closely with the Bank’s strategies and projects in Mexico. Therefore I have decided to research the relationship between the World Bank and Mexico. The World Bank is one of the world’s largest sources of development assistance. It is not really a bank, but rather a specialized agency comprised of 184 member countries. Along with several other institutions, the

Related Papers

Deutsche Bank Company Profile Essay

1717 words - 7 pages impact its future? Deutsche Bank is in the process of launching several technological and environmental changes through its high-­‐tech platforms. The bank’s most recent announcement is its addition of Nordic power markets to diverse strategies. This will ultimately draw more investors and managers to the liquidity and transparency benefits of managed accounts.12 12 "Deutsche Bank Adds Nordic Power Market to Diverse Strategies on DbSelect

Bank Of America Case Study

808 words - 4 pages businesses and large corporations. They provided a diversified range of financial assistances, such as banking, investing and asset management. All this through three business segments: Global Consumer and Small Business Banking, Global wealth and Global Corporate and Investment Banking. The headquarters of Bank of America is located in Charlotte, North Carolina. One of the banks business strategies is to serve as a leading financial partner and

Banking 1st Century Bank Essay

3469 words - 14 pages growth but also to ensure that they remain profitable in a business sector that has the greatest level of competition. This paper, therefore, seeks to evaluate and analyze the current marketing strategies of the 1st century bank as well as try to offer recommendations of other marketing strategies that the bank can either start using or stop using. This is to ensure its future survival and ascertain that it can remain effective, relevant, and

Mountain Bank Essay

1673 words - 7 pages effectiveness (Stewart & Brown, 2009). We must examine more closely the competitive business strategies, which encompass various types of strategies for Mountain Bank. Mountain Bank has chosen the business level strategy, which allows them to compete with other banks that offer the same four areas: corporate banking, retail banking, real estate and mortgage banking, and consumer lending. Within the business level strategy, Mountain Bank can elect