Development bank DFCC, is counting on its subsidiary Commercial Banks Bangladesh operations to give its bottomline a major boost.
Thanks to its Bangladesh unit, Commercial Bank is expected to contribute Rs. 539 mn towards DFCCs earnings, pushing its bottomline up by 10.3 percent to Rs. 1.2 bn for the 2004 financial year, says HNB Stockbrokers.rn
rnIn the midst of declining lines of concessionary credit, DFCC shifted its focus into commercial banking to cash in on the growing lucrative fee based income.rn
rnThough it acquired MERC Bank, which was later re-branded as DFCC Vardana Bank, its commercial banking operations still remain small.rn
rnWith four branches, Vardana Bank offers demand deposits, working capital loans, overdrafts and short-term business loans for DFCCs existing clients.rn
rnBacked by around Rs. 1 bn in assets, DFCC expects Vardana to break even on a monthly basis by end FY 2004.rn
rnVardana Bank also opened the door wider for higher fee based income and foreign currency tradi