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Sunday, April 14, 2013

Dena Bank hopes to get Rs 600 cr capital infusion this fiscal

Public sector undertaking Dena Bank hopes for Rs 600-crore capital infusion by the Government this financial year.

The bank had originally sought Rs 1,260 crore from the Government, and “we expect at least 50 per cent of that this year,” said Ashwani Kumar, Chairman and Managing Director of the bank.

Talking to a group of journalists here today, he said Dena Bank plans to expand its network by adding around 150 branches and 560 ATMs (automatic teller machine) during the current financial year.

The bank has pan-India presence with 1,600 branches and 560 ATMs across cities.

On the bank's performance, Kumar said it has been growing at 23-24 per cent year on year, and the total business (deposits and advances) is likely to be in excess of Rs 1,50,000 crore for 2012-13. “Our target is to touch Rs 4,00,000 crore in the next five years.”

Pressure on net interest margin

Admitting that there will certainly be pressure on net interest margin this year, he said the bank has been witnessing growth in the retail segment, particularly real estate and automobile sectors, which will drive the business growth.

According to him, the infrastructure sector is a major challenge for the bank, to which it has around 20 per cent exposure. Pointing to the state electricity boards restructuring account, he said the bank has a restructured SEB account portfolio of Rs 2,200 crore. The Tamil Nadu SEB restructuring to the tune of Rs 390 crore will come into the bank’s books during the current financial year, taking the total portfolio to Rs 2,600 crore.

Source: thehindubusinessline


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