History of Development Credit Bank Ltd.
The Ismailia Co-operative Bank Limited & the Masalawala Co-operative Bank Limited came into being in the 1930s. Eventually, Diamond Jubilee Co-operative Bank Limited merged with Ismailia Co-operative Bank Limited. Subsequently in 1981, Ismailia Co-operative Bank Limited was amalgamated with Masalawalla Co-operative Bank Limited to form the Development Co-operative Bank Limited. Citi Cooperative Bank Limited later merged with Development Co-operative Bank Limited, which thereafter was converted into a joint stock banking company, the Development Credit Bank Limited on May 31, 1995.
In the 1990s there were about 1400 co-operative banks in India & a few of these co-operative banks were given permission by RBI to convert into scheduled commercial banks. Development Co-operative Bank was one of 11 such banks that converted themselves into scheduled commercial banks. Vide their resolution dated January 28, 1995, the shareholders of Development Co-operative Bank resolved to register as a limited Comp. within the meaning of Sections 566 of Companies Act. Development Credit Bank Limited was granted the certificate of incorporation under the Companies Act & the license to carry on banking business under Section 22 of Banking Regulation Act, 1949 on May 31, 1995. At the time of its conversion to a limited Comp. under the Companies Act, the Bank had a capital of Rs.73.34 million & net worth of over Rs.1000 million.
Since its conversion into a scheduled commercial bank, the Bank has over the years expanded its operations beyond the states of Maharashtra, Gujarat & Andhra Pradesh into the states of, Goa, Haryana, Karnataka, Tamil Nadu, Union Territories of Daman & Diu and Dadra and Nagar Haveli & the National Capital Territory of Delhi. Today, it has a network of 67 branches, 5 extension counters and 101 ATMs across the country.
The terms of banking license issued to the Bank under Section 22 of Banking regulation Act stipulated, amongst others, that:
as] the Bank must comply with the Guidelines on Entry of Private Sector Banks dated January 22, 1993 issued by Reserve Bank of India;
bs] on the date of conversion, the unimpaired value of paid up capital & reserves of Bank together with the share application money received by it should not be less than Rs.1000 million;
cs] the Bank must make a public issue of its equity & arrange to have its shares listed on stock exchanges immediately after one year of its operations;
ds] the Bank must comply with the priority sector lending norms of 40% as applicable to private sector banks; & that
es] the Bank must ensure that not less than 25% of its branches are in rural/semi-urban areas within three years of its operations.
The Guidelines on Entry of Private Sector Banks which chalk out the scheme for permitting the entry of new private sector banks, prescribe, in relation to such a new private sector bank that:
as] the new bank may be listed in the Second Schedule of Reserve Bank, 1934;
bs] shares of banks should be listed on stock exchanges;
cs] voting rights of shareholders of bank shall be governed by ceiling of 1% [now increased to 10%s] of total voting rights as stipulated in Section 12[2s] of Banking Regulations Act;
ds] the new bank mustn't have as its director any person who is a director of any other banking Comp. or of companies which are entitled to exercise voting rights in excess of 20% of total voting rights of all the shareholders of the banking Comp. as laid down in the Banking Regulation Act, 1949;
es] the bank must achieve capital adequacy of 8% [now increased to 9%s] of risk weighted assets from the beginning. Similarly norms for income recognition, asset classification, & provisioning will also be applicable to it from the beginning. The bank must also comply with the single borrower & group borrower exposure limits that will be in force from time to time;
fs] though the bank must comply with the norms for priority sector lending, some modification in the composition of priority sector lending may be considered by the RBI for an initial period of three years;
gs] the bank may be issued an authorised dealer license to deal in foreign exchange when applied for;
hs] it shall be governed by policy that banks are free to open branches at various centres including that banks are free to open branches at various centres including urban/metropolitan centres without the prior approval of RBI once they satisfy the capital adequacy & prudential accounting norms. However, to avoid over-concentration of their branches in metropolitan areas & cities, a new bank must open rural & semi-urban branches also; & that
is] such a new bank must make full use of modern infrastructural facilities in office equipment, computer, telecommunications etc. in order to provide good customer service.
2007
- Development Credit Bank Ltd [DCBs] has appointed Mr. D E Udwadia as an Additional Director of Bank.
2009
- Development Credit Bank Ltd [DCBs] has appointed Mr. Suhail Nathani as an Additional Director of Bank at the Meeting of Board of Directors of Bank held on January 29, 2009.
