Dena Bank Q2 profit grows 20.5% to Rs 194 cr

Dena Bank has reported a 20.51 per cent jump in net profit to Rs 194 crore for the second quarter ended September 30, 2011, from Rs 161 crore in the corresponding quarter last year.

“The bank has identified agriculture, MSME and retail as thrust areas for lending,” said Mr D.L. Rawal, Chairman and Managing Director of Dena Bank.

As on September 30, 2011, the bank's deposits grew 20 per cent to Rs 64,236 crore and advances were up 18 per cent to Rs 43,100 crore. The net interest margin fell to 3.22 per cent during this quarter from 3.52 per cent in the previous quarter.

On increasing savings bank rate, Mr Rawal said that the bank has enough liquidity, and there is no immediate plan to increase the SB rate. “It will depend on a combination of factors such as liquidity position and relationship with one's customers. But in one or two months, we will have to take a call,” he said.

The bank has recruited 564 officers in the area of credit, agriculture and forex and is in the process of recruiting about 600 clerks. The bank is planning to open 100 new branches during the current financial year.