DCB IPO Basis of Allotment

DEVELOPMENT CREDIT BANK LIMITED

(Being a company Incorporated under the Companies Act, 1955 and a banking company within the meaning of the Banking Regulation Act, 1949 pursuant to its conversion from Development Co-operative Bank Limited, a co-operative bank, to a joint stock banking company on May 31, 1995.)

Registered office: 154, S.V. Patel Road (East), Dongri, Mumbai - 400 009 Telephone: 91-22-2289 9999;
Fax: 91-22-2287 6112 Corporate office: 204, Raheja Centre, Nariman Point, Mumbai - 400 021

BASIS OF ALLOCATION

PUBLIC ISSUE OF 71,500,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 26 PER EQUITY SHARE AGGREGATING RS. 1,859 MILLION BY DEVELOPMENT CREDIT BANK LIMITED (THE 'BANK' OR 'ISSUER') (THE 'ISSUE'). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF UP TO 68,997,500 EQUITY SHARES OF RS. 10 EACH (THE 'NET ISSUE') AGGREGATING RS. 1793.93 MILLION AND A RESERVATION FOR ELIGIBLE EMPLOYEES OF 2,502,500 EQUITY SHARES OF RS. 10 EACH AGGREGATING RS. 65.06 MILLION, AT THE ISSUE PRICE. THE ISSUE WOULD CONSTITUTE 48.43% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE BANK.

ISSUE PRICE Rs. 26 PER EQUITY SHARE. THE ISSUE PRICE IS 2.6 TIMES OF THE FACE VALUE

The Issue made through the 100% Book Building Process where up to 50% of the net Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') (including 5% of the QIB portion that was to specifically be allotted to mutual funds). Further, not less than 15% of the net issue to the public shall be available for allocation on. a proportionate basis to Non-Institutional Bidders and not less than 35% of the net issue to the public shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 201,255 applications for 2,521,237,600 equity shares resulting in 35.26 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retell Individual Investors and Employee and categories are as under (Before technical rejections):

Final Demand
The final demand at different bid prices is as under.

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ('BSE') on October 18,  2006.

A. Allocation to Employees
The Basis of Allocation to the Employees category, who have bid at cut-off or at the Issue Price of Rs.26/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 0.57702 times. The total number of shares allotted in this category is 1444000 Equity Shares. The category-wise details of the Basis of Allocation (Sample) are as under:

B. Allocation to Retail Investors
The Basis of Allocation to the Retail Investors, who have bid at cut-off or at the Issue Price of Rs.26/- per Equity Share, was finalized in consultation with BSE. The Category was over subscribed 14.53515 times. The total number of shares allotted in this category is 24678540 Equity Shares. The category-wise details of the Basis of Allocation are as under:

C. Allocation to Non Institutional Investors
The Basis of Allocation to the Non Institutional Investors, who have bid at the issue Price of Rs.26/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 77.25365 times. The total number of shares allotted in this category is 10878710 Equity Shares. The category-wise details of the Basis of Allocation (Sample) are as under:

D.Allocation to QIBs
Allocation to QIBs have been done on a proportionate basis in consultation with the Bombay Stock Exchange Limited. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (1724938) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (32773812) on proportionate basis. The sectoral cap and other limits applicable to the holding of shares in company have been taken into account while allotting shares. Mutual Funds were allotted 5.00% for QIB segment and other QIB applicants were allotted 95.00% of the shares for QIB segment.

The IPO Committee of the Bank at its Meeting held at Mumbai on October 19, 2006 has adopted the basis of allocation of shares of the Issue as approved by the Bombay Stock txcnange Limited area has allotted the shares to various successful applicants.

The Refund Orders and allotment advice and notice has been dispatched to the address of the investors as registered with the depositories.In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The company is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
These details of allotment made, would be hosted on the website of the Registrar to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Issue, Intime Spectrum Registry Limited, quoting full name of the First / Sole Applicant, Serial Number of the Bid-cum-Application Form, Number of Equity Shares bid for, Name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

INTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), Mumbai - 400 078
Tel. No.: (91 22) 25960320-28 Fax. No.: (91 22) 25960329

For Development Credit Bank Limited
Sd/
Mr. H. V. Barve
Company Secretary