DCB Bank, a new-generation private sector lender, is strengthening its focus on self-employed customers and aims to evolve from being primarily a lender to becoming a comprehensive financial solutions provider, while targeting a doubling of its loan book over the next three to four years.
The bank said it intends to offer sustainable solutions that address the surplus, deficit, risk protection and trade finance requirements of self-employed customers, reinforcing its long-term strategy of building deeper customer relationships.
Growth strategy remains customer-centric
In its Annual Report 2025-26, DCB Bank outlined its continued emphasis on self-employed customers, secured advances and granular loan and deposit portfolios. The bank also plans to expand its branch network in a calibrated manner through a cluster-based footprint strategy.
DCB Bank Managing Director & CEO Praveen Achuthan Kutty, said, “The bank’s core strategy continues to focus on self-employed customers, on secured advances and granular loans and deposits. Going forward, the bank expects to double the book in three to four years. We expect granularity of portfolio, continued focus on secured loans and geographical expansion that do not create regional concentration.”
Technology drives productivity gains
The bank highlighted technology as a key enabler of operational efficiency and customer convenience. Paperless processes, instant fulfilment capabilities, built-in validations and enhanced self-service options have helped reduce turnaround times, lower costs and improve customer experience.
DCB Bank has also deployed Gen AI-based solutions across voice and chatbot interactions. The technology is being leveraged to reduce false positives in deduplication, anti-money laundering (AML) monitoring and mule account identification, improving effectiveness while lowering operational expenses.
Digital innovation gathers pace
FY26 marked DCB Bank’s debut participation at the Global Fintech Festival in Mumbai, where it launched 13 products and showcased several fintech partnerships.
The bank also highlighted the success of DCB Tech Pulse 2025, which featured more than 30 initiatives spanning customer onboarding, digital servicing, automation and analytics. Its Technology Innovation Centre in Bengaluru continues to develop AI-driven personalisation, cloud-native solutions and simplified customer journeys aimed at supporting long-term scalability.
Balance sheet crosses ₹88,000 crore
DCB Bank reported that its balance sheet expanded beyond ₹88,000 crore during FY26, reflecting what it described as steady and granular growth.
Advances grew 17.58% year-on-year to ₹60,022 crore, while deposits increased 20.91% to ₹72,583 crore. Strategic changes in product mix, including a greater emphasis on business loans over home loans and a stronger focus on deposit costs, helped drive a 17% increase in net interest income.
The bank also recorded its highest-ever core fee income, resulting in a 14% year-on-year rise in fee income. Overall revenue grew 16% during the year.
Focus shifts to delinquency management
On asset quality, DCB Bank said it has shifted its priority from merely reducing non-performing assets (NPAs) to actively managing delinquency levels.
The bank has intensified monitoring of accounts that are even one day past due, rather than focusing solely on loans that have crossed the 90-day delinquency threshold. Combined with improvements in average asset ticket sizes, this approach has contributed to strengthening overall portfolio quality.