DCB Bank’s new CEO, Praveen Kutty, is focusing on increasing current and savings account deposits and overdraft products to address the large portion of loan book consisting of mortgages. The bank aims to attract low-cost deposits, currently standing at 25.61%, by reducing reliance on term deposits. Kutty believes that many customers have surplus funds in savings or current accounts at other banks, which DCB Bank is now targeting. The bank has a conservative lending approach, prioritizing secured loans, and is poised to expand its secured lending portfolio. However, it does not intend to venture into unsecured loans, such as credit cards, at this time. Instead, it plans to issue credit cards against fixed deposits, targeting customers who are not eligible for regular credit cards or those seeking to rebuild their creditworthiness. Overall, analysts expect the bank to maintain its conservative approach and founder support to maintain profitability and capital adequacy. The bank aims to maintain a total capital adequacy ratio of 15.55% and may require additional capital infusion next year if it maintains its current growth trajectory.
