Dena Bank in recast mode

Plans to double ATM network, merge 50 urban branches

In a move aimed at consolidating its urban banking operations, Dena Bank has decided to merge 50 urban branches with other urban branches. At present, Dena Bank has 1,135 branches.

"The rationale behind closing 50 branches and merging them with other branches is to save day to day operational costs and to improve productivity. But profitability and productivity of the branches are not the reasons for the merger. We will merge only those branches in the metro and urban areas," said A K Khandelwal, chairman and managing director of Dena Bank.

Explaining the move, he said that there were too many branches located close to each other in the urban areas which is not a gainful equation.

Khandelwal was in Vadodara to inaugurate bank's new branch building.

Dena Bank is also in the process of recruiting 275 officers to ensure efficient operations. Of the 250 officers, 100 officers will focus on agriculture finance.

"The officers will be trained about the crop pattern of the respective areas and will be deployed in the rural branches to promote the rural finance," said Khandelwal.

The bank is also moving ahead with the plan to interlink 200 branches under the Core Banking Solutions (CBS) platform, Khandelwal stated. The bank will also add about 100 ATMs to its existing network of 123 ATMs, by the end of this year. Of the 100 ATMs, 25 will be installed in Gujarat. Currently, Dena Bank has 30 ATMs in the state.

Dena Bank has also chalked out a plan to target students interested in education loans for further studies in India as well as abroad.

"Gujarat and Maharashtra will be our prime targets as there is a large number of students who are interested in higher studies and looking for the finance. We have approached some of the institutes for support," said Khandelwal.

Dena Bank will also continue its focus on housing finance and trade finance.

Dena Bank is awaiting a nod from the Central government to raise Rs 80 crore through the public issue, which is likely to be announced anytime during the third quarter of the current fiscal year, the CMD said.