 "Dilute 7% stake to raise Rs 1,200 cr: Dena Bank to Centre")
State-owned Dena Bank has said it has asked the Centre to dilute seven per cent of its 58 per cent stake in the bank. The move will help the bank raise about Rs 1,200 crore and meet its target of 18 per cent growth. The bank management has said without the capital-raising, growth will stand at 11 per cent.
Speaking to reporters, Chairman and Managing Director Ashwani Kumar said, “Our target is to grow at about 18 per cent in the next 18 months, primarily driven by the SME (small and medium enterprise) and retail sectors.” He added the bank’s retail book was expected to increase 23-24 per cent.
“We asked the government to reduce its holding to 51 per cent. If this capital isn’t there, our growth will be about 11 per cent,” Kumar added. The bank aimed to improve its credit-deposit ratio from 70 per cent to 72-73 per cent, he said.
Kumar said the bank’s gross non-performing assets stood at 3.3 per cent, adding there was pressure on the infrastructure, steel and textile segments. During the quarter ended June, the bank saw slippages in large accounts.
On whether the bank would see any impact of a possible cancellation of coal block allocations, Kumar said Dena Bank had exposure to nine power and steel accounts, and these might be hit.
Speaking to reporters, Chairman and Managing Director Ashwani Kumar said, “Our target is to grow at about 18 per cent in the next 18 months, primarily driven by the SME (small and medium enterprise) and retail sectors.” He added the bank’s retail book was expected to increase 23-24 per cent.
“We asked the government to reduce its holding to 51 per cent. If this capital isn’t there, our growth will be about 11 per cent,” Kumar added. The bank aimed to improve its credit-deposit ratio from 70 per cent to 72-73 per cent, he said.
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At the end of 2013-14, Dena Bank’s overall loan book stood at Rs 1,88,649 crore. The bank plans to increase this to Rs 4 lakh crore by 2017. To support this, the bank has set a target of opening 150-175 branches every year.
Kumar said the bank’s gross non-performing assets stood at 3.3 per cent, adding there was pressure on the infrastructure, steel and textile segments. During the quarter ended June, the bank saw slippages in large accounts.
On whether the bank would see any impact of a possible cancellation of coal block allocations, Kumar said Dena Bank had exposure to nine power and steel accounts, and these might be hit.