Dena Bank likely to enter non-life insurance biz

Kolkata, Jul 13: Dena Bank, a public sector bank, is exploring opportunities to enter insurance sector in the non-life segment, with a foreign partner, in the current fiscal.

Speaking to mediapersons here today at the sidelines of the Banking Conclave, organised by FICCI, Dena Bank Chairman&Managing Director P L Gairola said,''The proposal is yet to get approval from our board. We are trying to tie up the loose ends and will soon finalise the plan.'' Dena Bank might have 26 per cent stake in the joint venture, where a foreign partner would be roped in, he said.

The bank currently sells both life and non-insurance products of LIC and Oriental Insurance Company respectively through its retail network.

Speaking about the bank's capital raising plans, Mr Gairola said the bank has headroom for raising Rs 800 crore. The bank aims to raise Rs 300 crore this fiscal through Upper or Lower Tier I or II bonds. The Cash Reserve Ratio of the bank stands at 11.5 per cent.

The bank has targeted credit growth of 22 per cent in 2007-08, compared to 27 per cent last year, while the deposit growth would be 23 per cent in the current fiscal.

''The total business of the bank is expected to touch Rs 46,500 crore at the end of the fiscal compared to Rs 57,000 crore in the last fiscal,'' he said.

Elaborating about the bank's branch expansion plans, Mr Gairola said the bank intends to open around 35 branches in this fiscal.

Last year 20 branches were opened. The bank has also initiated steps to introduce Core Banking Services (CBS) in 25 branches, which would eventually go up to 100.

UNI