Dena Bank to expand network in FY 08

In the current financial year Dena Bank will be extending its network of branches across India. It has plans to open 22 new branches; out of these four branches will be opened in Gujarat, three branches in Ahemdabad and one in Surat.

In addition to this in financial year 2008-2009 bank will be increasing advances by 45% in Gujarat in financial year 2008-2009.

In March Dena bank's total advances were at Rs 23,381 crore, in the current financial year bank has plans to increase by 22% to be around Rs 28,525 crore.

PL Gairola chairman and managing director of Dena Bank stated that the advances will be allocated to different segments, 20% will be given to retail segment, 17% SME and 14.5% in agriculture sector. "We are also into micro advances but right now the proportion is not fixed."

Core banking project of Dena Bank's is going full strangle. To connect all branches under core banking it is investing Rs 304 crore in addition this year, bank will be diverting 400 branches under the project which is to be completed in 2010.

General Manager of Dena Bank, TR Chawla told the newsmen in FY 08, the bank's total advances were Rs 4,568 crore in Gujarat, which the bank aims to increase by 45%.

"Bank will put in Rs 1,580 crore in indirect agriculture loan, Rs 340 crore for direct agriculture loan and Rs 637 crore for SME industries in Gujarat."

In other priority sector like education bank will be giving Rs 1050 crore in Gujarat.

Dena Bank has signed an MoU with Microfinance Saving Support Foundation for introducing 'Zero Balance Accounts' as it has plans to collaborate with Gujarat Green Revolution Co Ltd for drip irrigation.

Gairola informed bank also plans to tie-up with postal department in Gujarat to cover more customers. The pilot project for the same is already running in Maharashtra's Appola and Amravarti districts.

In financial year 2007-08, the bank's total deposits rose to Rs 33,943 crore, up by 22.58% over the previous year. Net profit increased by 78.50% to touch Rs 359.79 crore, while net NPA ratio was down by 105 points to be at 0.94%.