DCB BANK Share price

History and Certain Corporate MattersThe Ismailia Co-operative Bank Limited and 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 and 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 company within the meaning of Sections 566 of the Companies Act. Development Credit Bank Limited was granted the certificate of incorporation under the Companies Act and the license to carry on banking business under Section 22 of the Banking Regulation Act 1949 on May 31 1995. At the time of its conversion to a limited company under the Companies Act the Bank had a capital of Rs.73.34 million and 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 and Andhra Pradesh into the states of Goa Haryana Karnataka Tamil Nadu Union Territories of Daman and Diu & Dadra & Nagar Haveli and the National CapitalTerritory of Delhi. Today it has a network of 67 branches 5 extension counters and 101 ATMs across the country.The terms of the banking license issued to the Bank under Section 22 of the Banking regulation Act stipulated amongst others that:a) the Bank must comply with the Guidelines on Entry of Private Sector Banks dated January 22 1993 issued by the Reserve Bank of India;b) on the date of conversion the unimpaired value of the paid up capital and reserves of the Bank together with the share application money received by it should not be less than Rs.1000 million; c) the Bank must make a public issue of its equity and arrange to have its shares listed on stock exchanges immediately after one year of its operations;d) the Bank must comply with the priority sector lending norms of 40% as applicable to private sector banks; and thate) 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:a) the new bank may be listed in the Second Schedule of the Reserve Bank 1934;b) shares of the banks should be listed on stock exchanges;c) voting rights of the shareholders of the bank shall be governed by the ceiling of 1% (now increased to 10%) of the total voting rights as stipulated in Section 12(2) of the Banking Regulations Act;d) the new bank must not have as its director any person who is a director of any other banking company or of companies which are entitled to exercise voting rights in excess of 20% of the total voting rights of all the shareholders of the banking company as laid down in the Banking Regulation Act 1949;e) the bank must achieve capital adequacy of 8% (now increased to 9%) of the risk weighted assets from the beginning. Similarly norms for income recognition asset classification and provisioning will also be applicable to it from the beginning. The bank must also comply with the single borrower and group borrower exposure limits that will be in force from time to time;f) though the bank must comply with the norms for priority sector lending some modification in the composition of the priority sector lending may be considered by the RBI for an initial period of three years;g) the bank may be issued an authorised dealer?s license to deal in foreign exchange when applied for;h) it shall be governed by the 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 the RBI once they satisfy the capital adequacy and prudential accounting norms. However to avoid over-concentration of their branches in metropolitan areas and cities a new bank must open rural and semi-urban branches also; and that i) 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.