Govt stake in Dena Bank to drop 20%

The central government holding in Dena Bank will come down by 19.80% to 51.19% from the current level of 70.99% after the second public issue of the bank to raise Rs 216 crore.

The bank is entering the capital market with its second public issue of 8 crore equity shares of Rs 10 each at a premium of Rs 17 per share.

The issue opens for subscription on January 24 and closes on January 29.

M V Nair, executive director of Dena Bank, said the issue was being made to augment the capital base to meet future capital adequacy requirements and also augment long-term resources.

The bank's capital adquacy ratio would increase to about 12% from 10.28% after the proposed issue.

Nair said the bank would be laying thrust on retail banking in the coming years to be among the top 4-5 banks in the segment.