Chennai, Jan 22 (IANS): The DCB Bank Ltd will soon approach the Reserve Bank of India (RBI) seeking extension of time to dilute the promoters' stake to 10 percent given the poor market conditions, a top bank official said Wednesday.

"Our plan is to approach the RBI seeking its guidance on the issue and also extension of time to comply with its equity holding norms," managing director and CEO Murali M Natarajan told IANS.

He said given its business plans, the bank does not need any equity infusion over the next 15 months.

The bank's promoter and promoter group, the Aga Khan Fund for Economic Development, holds around 18.5 percent in the bank's equity.

The RBI stipulated time limit is March 31, 2014.

Earlier speaking to reporters here, Natarajan said: "We do not need any fresh capital for the next 12-15 months given our business plans. Fresh capital would be needed only after that. The equity market is also not right now for an equity issue."

He said the bank would expand its branch network to 300 in three-four years time from the current 116 branches.

Nearly 50-60 percent of the new branches will be in the tier two-tier six towns where the income levels are going up. Branches located in such towns achieve their breakeven point in 18 months time, he said.

On the business side, Natarajan said the bank aims to have a total business (deposits plus advances) of around Rs.24,000 crore. Last fiscal, the bank closed with a total business of around Rs.12,000 crore.

Natarajan said the bank would also focus on increasing its fee based income selling insurance, mutual fund and other products.

To query whether the bank would be open to become an insurance broker if stipulated, he said a decision would be taken once the norms gets finalised.

The Insurance Regulatory and Development Authority (IRDA) wants banks to become insurance brokers and not be an agent of a single insurer.