A slowing economy has prompted Dena Bank to lower its credit growth target this fiscal.
As against 18 per cent credit growth witnessed till March-end in the previous fiscal, the public sector lender is now eyeing 15-16 per cent credit growth this fiscal, a top official said.
Dena Bank has now decided to focus its attention on improving credit flow to the agricultural, retail, and MSME sectors in the second half of this fiscal, Ashok Kumar Dutt, Executive Director, told
The bank will not look to add new corporate customers in the current fiscal. It has also decided not to focus on large corporations, Dutt said.
LONDON Entry
Dena Bank is hopeful of opening its London representative office by December-end.
This public sector lender has already received Reserve Bank of India (RBI) nod for the move .
The bank’s senior management had also met the UK banking regulator and hopes to get its approval soon, Dutt said.
After a period of one year, Dena Bank wants to convert the representative office into a full-fledged branch, Dutt said.
Dena Bank has also applied to the RBI for opening a branch each at Hong Kong, Nairobi and Johannesburg.
Once an in-principle nod is received, Dena Bank will approach the Government for its nod to open a branch in these three overseas locations.
CAPITAL RAISING
An inter-ministerial panel will have to clear the bank’s application before it is allowed to expand footprint in these locations. Dena Bank will complete the formalities for receiving capital infusion of Rs 700 crore from the Government by December-end.
The bank will also do a qualified institutional placement (QIP) for Rs 600 crore in the fourth quarter of this fiscal.
After both the equity issuances, the Government stake in the bank will be retained at the current level of about 55 per cent, Dutt added.