Gramin bank cuts gross NPAs by 1.40%

Dena Gujarat Gramin Bank (DGGB) has managed to bring down its present gross non performing assets (NPAs) by 1.40 per cent compared to previous year through an enhanced focus on debt recovery.

Purushottam Kumar, general manager of Dena Bank, told Business Standard, "The gross NPAs has been reduced to a greater extend compared to previous financial year".

The gross NPAs for the financial year ended March 31, 2006 was recorded at 3.29 per cent which has been brought down to 1.89 per cent in the fiscal year ended on March 31, 2007.

The gross NPAs of DGGB stood at Rs 9.59 crore as against the advances of Rs 290.31 crore for the fiscal ended March 2006. While during 2006-07 the gross NPAs stood at Rs 8.26 crore against the advances of Rs 436 crore. The DGGB was able to reduce the gross NPAs by efforts made through recovery and one time settlement.

The bank had a target of achieving a total advances of Rs 415 crore for the FY2007 against which it made total advances of Rs 436 crore. Whereas in deposit the bank had set a target of Rs 830 crore, while it was able to garner deposit of Rs 882.65 crore for the FY2007.

The bank was also able to achieve the doubling of agriculture advances. The bank had set a target of Rs 173 crore for agriculture advances for 2006-07. While the bank disbursed Rs 235 crore for agriculture advances in the financial year ended March 2007.

DGGB has 131 branches in rural and semi urban areas targetting the agriculture sector, self help group and allied agricultural activities. Dena Bank has 35 per cent stake in the DGGB, while central government and state government holds 50 per cent and 15 per cent respectively.