Dena Bank chalking out new Gujarat strategy

In a bid to cash in on the growth that Gujarat has been experiencing, the Dena Bank is at present chalking out a 'Resurgent Gujarat' plan that will include participating in various schemes and projects taken up in the state and also bringing about a change in the internal set up of the bank.

M V Nair, executive director, Dena Bank, who was in Ahmedabad on Monday, said, "The Dena Bank management is chalking out a 'Resurgent Gujarat' package. It will have two aspects"" participating in various projects here and internally ramping up the bank mechanism in the state."

Nair said that while the entire strategy is at present in the deliberations stage, the bank will approach government agencies and other departments soon.

"Dena bank already has a very strong presence in the state and with Gujarat making rapid progress in almost all sectors, the bank has decided to accord a major thrust in the state in the coming months," Nair said.

With over 525 branches in the state, which is about 35 per cent of the total branches of the bank, the bank aims at a much larger share of business from Gujarat.

"About 30 per cent of the bank's business comes from Gujarat. We want this to go up manifold with the proposed move," he said.

Nair said that in the post-IPO scenario, he expects the capital adequacy ratio to shoot up to 11.5-12 per cent by the end of the current fiscal. Without the Rs 216 crore capital generated from the public issue, the CAR stood at 10.8 per cent.

"We are overwhelmed by the response to the IPO. Dena Bank now aims to cash in on the gains that have been made," Nair said.

Nair also added that the bank proposes to have as many as 40 Finmarts (specialised loan selling centres) by the year end, which will be increased to 100 in the next financial year.

He added that reduction in the net non-performing assets (NPA) from 9.48 per cent to five per cent is also a commendable feat by the bank.