Dena Bank set to raise Rs 900 crore

Dena Bank is looking at raising Rs 700 crore as Tier-I and Tier-II capital for meeting the regulatory requirements of 12 per cent capital adequacy ratio (CAR) for which it is in talks with the finance ministry.

Given the bank's growth targets as well as Basel-II requirement, the fund would be required in three years.

The present capital adequacy ratio (CAR) of the bank stands was well above the stipulated 9 per cent level, chairman and managing director M V Nair told reporters at the sidelines of banking conclave organised by Ficci here today.

Nair said to meet the Basel-II norms and achieve 25 per cent growth in assets, the bank would need Rs 450 crore as Tier I capital and the balance as Tier-II.

Since government holding in the bank was 51.19 per cent, there was no scope for tapping the capital market for resources.

"Hence routes such as preference shares and preferential allotments would have to be looked into before which we require clear guideline from the government," he explained.

He also said the bank was planning to raise resources using innovative instruments which were being considered by the finance ministry.