Dena Bank may require Rs 700cr for meeting 12% CAR

Dena Bank might require Rs 700 crore as Tier I and Tier II capital for meeting the regulatory requirements of 12% capital adequacy ratio (CAR) for which it was in talks with the finance ministry.

The present CAR of the bank was well above the stipulated 9% level, M V Nair, chairman and managing director of Dena Bank said on the the sidelines of banking conclave organised by Ficci today.

Nair said that to meet Basell II norms and achieve 25% 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%, there was no scope for tapping the capital market for resources.

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

Speaking about targets, he said during the current financial year, deposits growth was pegged at 20% over last year's figure of Rs 20,000 crore.