Basis of Allotment

DEVELOPMENT CREDIT BANK LIMITED

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):

Category No. of Applications No. of Shares Subscription
Retail Bidders 199556 364378850 15.09
Non Institutional Bidders 871 848513250 61.96
Qualified Institutional Bidders 204 1306894000 37.68
Employees 622 1451500 0.56
TOTAL 201255 2621237800 35.26

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

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to Total
22 38348250 1.33 38348250 1.33
23 824500 0.03 39172750 1.36
24 174560500 6.06 213733250 7.42
25 131939000 4.58 345672250 12.01
26 2178422500 75.66 2524094750 87.66
CUT-OFF 355172500 12.34 2879267250 100.00
TOTAL 2879267250 100.00

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:

Category No. of
Applications
% to Total Total No. of
Shares Applied
% to Total No. of Shares
Allocated
Ratio Total No. of Shares Allocated
250 46 7.42 11500 0.8 250 FIRM 11500
500 71 11.45 35500 2.46 500 FIRM 35500
750 14 2.26 10500 0.73 750 FIRM 10500
1000 83 13.39 83000 5.75 1000 FIRM 83000
1250 10 1.61 12500 0.87 1250 FIRM 12500
1500 21 3.39 31500 2.16 1500 FIRM 31500
1750 24 3.87 42000 2.91 1750 FIRM 42000
2000 31 5 62000 4.29 2000 FIRM 62000
2250 7 1.13 15750 1.09 2250 FIRM 15750
2500 8 1.29 20000 1.39 2500 FIRM 20000
2750 5 0.81 13750 0.95 2750 FIRM 13750
3000 16 2.58 48000 3.32 3000 FIRM 48000
3250 7 1.13 22750 1.58 3250 FIRM 22750
3500 14 2.26 49000 3.39 3500 FIRM 49000
3750 263 42.42 986250 68.3 3750 FIRM 986250

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:

Category No, of Applications Total Total No. of Shares Applied % to Total No. of Shares Allocated Ratio Total No. Of Shares Allocated
250 22795 11.61 5698750 1.59 250 7:100 398250
500 24222 12.33 12111000 3.36 250 7:51 831250
750 7808 3.98 5856000 1.63 250 7:34 402000
1000 22582 11.5 22582000 6.3 250 11:40 1552500
1250 4114 2.09 5142500 1.43 250 10:29 354750
1500 6906 3.52 10359000 2.89 250 7:17 711000
1750 48371 24.63 84649250 23.6 250 13:27 5822500
2000 3943 2.01 7886000 2.2 250 11:20 542250
2250 613 0.31 1379250 0.38 250 31:50 95000
2500 1215 0.62 3037500 0.85 250 69:100 209500
2750 350 0.16 962500 0.27 250 3:4 65750
3000 1330 0.68 3990000 1.11 250 63:100 276000
3250 378 0.19 1228500 0.34 250 89:100 84000
3500 1533 0.78 5365500 1.5 250 24:25 368000
3750 50255 25.59 188456250 52.54 258 FIRM 12965790

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:

Category No. of Applications % to Total Total No. of Shares Applied % to Total No. of Shares Allocated Ratio Total No. of  Shares Allocated
4000 69 9.09 276000 0.03 250 1: 5 3500
10000 25 3.29 250000 0.03 250 13:25 3250
100000 30 3.95 3000000 0.36 1294 FIRM 38820
200000 23 3.03 4600000 0.55 2589 FIRM 59547
1000000 4 0.53 4000000 0.48 12944 FIRM 51776
1153750 6 0.79 6922500 0.82 14935 FIRM 89610
1346000 5 0.66 6730000 0.8 17423 FIRM 87115
1923000 4 0.53 7692000 0.92 24892 FIRM 99568
2000000 3 0.4 6000000 0.71 25889 FIRM 77667
3846000 2 0.26 7692000 0.92 49784 FIRM 99568
4250000 2 0.26 8500000 1.01 55014 FIRM 110028
5000000 2 0.26 10000000 1.19 64722 FIRM 129444
10000000 3 0.4 30000000 3.57 129443 FIRM 388329
10349500 2 0.26 20699000 2.46 133968 FIRM 267936
10384500 5 0.66 51922500 6.18 134420 FIRM 672100
19230750 2 0.26 38461500 4.58 248930 FIRM 497860
68997500 2 0.26 137995000 16.42 893001 FIRM 1786002

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.

Category FIs/Banks MFs FIIs Insurance Companies VCs Total
No. of Shares 5991740 8719157 18944011 843842 - 34498750

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

Place: Mumbai
Date: October 23, 2006

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

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF DEVELOPMENT CREDIT BANK LIMITED.
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