Dena Bank to put Rs 400 cr into Core Banking

Ahmedabad, May 30: Even as Dena Bank proposes to implement Rs 400 crore 'Core Banking' or 'Anywhere Banking' Project in three years, it has also decided to focus on retail, rural, small and medium enterprise (SME) sectors for asset building.

Unveiling the bank's Vision 2005-10, its Chirman and Managing Director P L Gairola said the selection of vendors might take 4 to 6 weeks, and implementation would be done in the first half of this fiscal.

The bank proposes to take its total business from Rs 36,946 crore last financial year to Rs 50,000 crore by 2006-07 and to Rs 100,000 crore by 2010.

He said the advances to retail sector is proposed to be increased by 52 per cent, agriculture sector by 36 per cent and SME 30 per cent during the current year from last year.

He said the Non-Performing Asset (NPA) has been a contentious issue for Dena Bank in the previous years, but its Gross NPA was brought down to Rs 949 crore as on March 31 thsi year from Rs 1,147 crore as on March 31 last year.

However, he said, the bank continued to increase its net profit to Rs 72.99 crore last fiscal from 61.00 crore the previous year.

He stressed on the need to bring it down further with prudent assesement of advances to various sectors.

''Although small in size,'' Mr Gairola said, ''Dena Bank has a big exposure in the rural sector. Two-third of its 1,120 branches are in rural and semi-urban areas. That is the ratio among 518 branches in Gujarat.'' It is not only fulfilling its statutory obligation of 33 per cent advances to rural sector and 40 per cent to priority sector, it runs several unique schemes for the rural sector.

''The bank has adopted 51 villages in its seven lead districts (out of total 25) in Gujarat to ensure not a single household is left without banking services.'' he said.

''Each of these villages must have a minimum of two Self Help Groups and Farmers' Club. NCDEX Price Index is maintained at Dena Bank branches in these villages to enable farmers tally global fluctuation of the crops they produce,'' he added.

The two Dena Bank Rural Development&Self Training Institutes (DRUDSETIs), opened at Bhuj and Mehsana last year, has not only trained over 500 youth, but has also arranged credit for them to start their own business.

Mr Gairola, who was in Gujarat in connection with the bank's 69th foundation day, made it a point to visit the Mehsana institute today. He also opened 15 ATMs in different parts of the state during his two-day visit to the state.

He said that the bank has decided to open new savings bank accounts with just five rupees as deposit, but only in rural areas.

The bank also proposes to open 45 new branches and 245 ATMs in the country, including 33 branches and 37 ATMs in Gujarat, during the year, taking the total to 500 ATMs and 1,165 branches.

UNI