Kathmandu, August 19:

Development Credit Bank Ltd (DCBL) is introducing a new saving scheme from Sunday targeting a small earning group of people.

The new product ‘Merai Bachat Khata’ can be opened with a minimum balance of Rs 500. DCBL offers three per cent interest in this account.

“DCBL plans to promote banking habits in poor and small earning groups of people. The account holder will also get an ATM card without an additional cost,” said Sudhir Khatri, chief operating officer of the bank.

Disclosing the financial results for the fiscal year 2005-06, Khatri said that DCBL has posted a sound growth of Rs 77.4 million operating profit. The profit after loan loss provision stands at Rs 68.8 million — a 22 per cent rise from last year’s profit. DCBL has, during the period, mobilised deposits wo-rth Rs 2.10 billion and disbursed loans and advances worth Rs 1.90 billion.

Encouraged by last year’s sound growth, DCBL plans to issue bonus shares to its shareholders in a range of 12 to 15 per cent, which is subject to approval from the annual general meeting (AGM).

Stating that the bank has been maintaining a strong financial condition since its inception in November 2001, Khatri said that the bank’s non-performing assets (NPA) stand at 0.8 per cent and the capital adequacy ratio at around 15 per cent.

The bank is going to raise its paid-up capital to Rs 320 million by the end of the current fiscal year, four years ahead of the deadline set by the Nepal Rastra Bank.

The central bank has directed all development banks to increase their paid-up capital to Rs 320 million by mid-July 2011.

“DCBL is planning to upgrade into a commercial bank of category ‘A’ by 2010-11. It is also planning to start merchant banking with other banks and financial institutions,” he said. Moreover, the bank is set to open two new branches in Kathmandu valley and Pokhara soon.

“Besides expanding services and its presence, DCBL has already purchased two ropanis of land at Kamaladi, where the bank will construct its corporate office,” Khatri said.