Dena Bank to halve its gross NPAs

Dena Bank is aiming at further reduction in its gross non-performing assets (NPA) during the financial year 2007-08.

According to the bank, the gross NPAs and net NPAs stood at Rs 857 crore and Rs 414 respectively.

U S Kohli, executive director of Dena Bank told Business Standard, "We have set a target to bring down our gross NPAs from the existing 4 per cent to 2 per cent this year."

Dena Bank has stepped up its bad loans recovery under the Securitisation and Reconstruction of Financial Asset and Enforcement of Securities Interest (Sarfaesi) Act and has five branches involved in bad debt recovery.

The bank is focusing on reduction of its NPAs after it recovered only Rs 82 crore out of Rs 370 crore worth of NPAs, informed Kohli.

"We will also bring down our net NPA below 1 per cent from the present 2 per cent in the FY 08," Kohli said, adding that the bank aims to bring the net and gross NPAs at par with the normal banking industry trend.

On the possibilities of Dena Bank raising further capital from the market, Kohli said presently the bank has enough capital and has no immediate need to raise the money.

"The board has authorisation to raise Rs 650 crore. We have already raised Rs 300 crore", said Kohli.

However, he said that if the need arises the bank would raise the remaining amount after analysing the market situation. The bank's capital adequacy ratio stands between 10.5 per cent to 10.75 per cent.