Development Credit Bank plans IPO

The Development Credit Bank, an emerging private sector bank in India, would shortly go in for its IPO to raise Rs 300 crore (Rs 3 billion).

The Aga Khan Fund for Economic Development, an institution that supports economic development activities in the third world, is its largest single shareholder and holds 69 per cent of DCB's equity.

This (IPO) would reduce the AKFED stakes considerably, a top bank executive said in Chennai.  P Vasudevan, head, consumer banking group of the bank said that the Bank had applied for SEBI's permission for the IPO.

Being the first bank, which had been converted from a co-operative bank to private

commercial bank, it wanted to increase its presence and make it a 'Pan India' one, he said.

The bank on Wednesday launched its unique 'M-power current account', claimed to be the first such in the country.

Under the scheme, the depositors need not maintain an average quarterly balance, but could still avail of several facilities like getting demand drafts up to Rs 50 lakh without paying any charges, free payable at par cheques up to Rs 50 lakh per month and electronic fund transfer facility up to Rs1 crore a month, he said.

The depositors should pay an annual fee of Rs 2,500 for using these facilities, he said.