Private sector bank DCB Bank will be going slow in its expansion plan backed by response from the stock market. As on Tuesday, Banks showed profits that are expected to double in the next year. According to the bank management even though the stock price showed 3.5% rise it has decided to open new branches after consultations with analysts and the Chairman.
The bank will set up its 150 branches from one year period to the maximum span of two years. DCB Banks’s products and services extend from loans to Small and medium enterprises to Loans targeting individual needs, commercial vehicle and small business loan.
The two year time will help the management team to cautiously and prudently open 150 and more branches compared to a years’ time. Bank statements on Friday showed the revised financial estimates for the coming two weeks.
The DCB Bank which is known as Development Credit Bank has about 160 branches across India. Financial estimates of such banks are estimated to be disclosed within the two weeks’ time.
The expansion of DCB Bank to over 160 branches will nearly double the current branches of DCB in India and it will help in earning Rs 9 to 15 Crore profits in the financial year of 2016. For the year 2017 the profits are more close to Rs 50 to 65 Crore and Rs 20 to 35 crore for the year 2018.This marks the positive response of earnings with initiative to put up 150 branches in the country within the time span of 24 to 30 months with a payback period of 44 to 50 months’ time.
DCB Bank’s second quarter net profits dropped to 9.7% that took the overall profit to Rs 37 crore.
