DCB Bank dropped DSA-led sourcing and rebuilt teams, gold loans up 56.7% (interview)
In an interview, DCB Bank's CEO says it accepted slower growth to move from agent-led to own-sourced secured lending, shrinking then rebuilding headcount.
What was changed
In a May 2026 interview with ETBFSI, DCB Bank MD and CEO Praveen Kutty says the private lender consciously restructured its workforce over the previous few quarters as it moved from sourcing led by direct selling agents (DSAs) to an organic, productivity-driven model. He says that brought temporary pressure on growth in select segments, such as mortgages, while the bank rebuilt teams, retrained staff and realigned incentives.
Kutty says some disruption and attrition was natural because not everyone is comfortable with the move. Headcount fell from 11,057 in March 2025 to 10,792 in September 2025, then recovered to 11,374 by March 2026, while branches grew from 464 to 480. The stated strategy is to cut reliance on bulk and volatile businesses, focus on secured small-ticket lending to self-employed customers and small businesses, and expand in Tier-II to Tier-VI markets.
FY26 figures from the bank's Q4 investor presentation, as cited by ETBFSI: advances rose 17.6% to ₹60,022 crore, the retail mortgage book grew 10.7% to ₹29,262 crore, gold loans grew 56.7%, co-lending 24.9% and tractor financing 23.1%.
Why it worked
The bank wanted to rely less on volatile, bulk business and more on granular, secured lending it sources itself.
Tighter underwriting, sourcing and productivity standards meant some staff left and mortgage growth moderated for a time.
Retraining and new incentives were needed to align the frontline with serving self-employed customers through relationship-led banking.
What can be applied
Switching how a lender sources business costs attrition and a growth dip first; the payoff only shows once teams are rebuilt and incentives realigned.
Aftermath
By March 2026 the bank had rehired to 11,374 staff and 480 branches, but the article offers no profit figure; mortgage growth of 10.7% trailed the overall 17.6% advances growth, which the CEO frames as the accepted short-term cost.