Excerpts from CNBC - TV18’s exclusive interview with Nasser Munjee:

Q: Take us through the roadmap that you have of cleaning up the balance sheet of DCB and by what time can you actually go back to net NPA levels which you would be comfortable with, and capital adequacy ratio?

A: We’ve had a static balance sheet for a while, largely because we’ve been at a capital adequacy ratio of just over 9. So, our net NPAs have fallen from 6% to 4% and we are hoping to go below 2% very shortly, by recoveries and by growing the balance sheet, which this IPO will enable us to undertake.

Q: What would the strategy of this bank be, would it be more towards retail or corporate and what kind of rollout plan do you have?

A: Our basic focus is the SME sector, our history with the corporate sector has not been particularly bright but we will have a very strong retail focus as well. We are very keen to push CASA, current account and savings account, which is actually moving very dramatically through our 70 branches at the moment. So it will really be a SME strategy with a very strong retail focus as well.

Q: Line out whether the bank has set targets in terms of deposit growth, advanced growth and where you want your net interest margins to be by FY08?

A: Given this strategy of dramatic CASA growth, we want to reduce the cost of funds as dramatically as possible. Our focus is SME, which gives us far better spreads than what one would get in traditional lines of business. This is a sector which the bank has understood and has been involved with for many years. So NIMs will improve as we go along. Unfortunately today with the  competitive nature of the deposit market, NIMs will not improve immediately but it will be on a rise, depending on the cost of funds.

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