Dena Bank to invest Rs 304 cr on core banking solutions:CMD

Panaji, Dec 1 (UNI) The public sector Dena Bank will invest Rs 304 crores over the next ten years to strengthen its core banking sector in a bid to strengthen its network for boosting business.

Disclosing this to media persons here today, the bank's Chairman and Managing Director P L Gairola said that it plans to cover 850 branches out of the total 1140 under core banking solutions by the year 2009.

The initiative which started only in March this year is expected to bring 150 branches under the core banking sector by March 2008.

This will facilitate on-line trading of stocks and other market instruments even as the bank has decided to foray into non-life insurance business for which it is yet to identify the partner.

Gross revenue from non-interest business including sale of mutual funds and insurance products has grown by 23 per cent to 40 crores and more focus would be made on this sector.

Sale of 99.99 per cent pure Gold Coins in collaboration with other banks is also on the anvil to increase its non-interest revenue, he said.

Spread across the Western region of India, Dena Bank has 62 per cent of its branches in rural and semi-urban areas.

It continues to register a 22 per cent growth in the current fiscal touching Rs 56,000 crore mark even as it is focussing on attracting low cost deposits, small and medium enterprises, agriculture and retail sector besides infrastructure, Mr Gairola said.

Aggressive recovery drive had resulted in reducing its NPA to Rs 701 crores by September this year, comprising 3.5 per cent of the gross advances. It is likely to reduce to 2.5 per cent by March 2008, he added.

Referring to Goa, he said that the CD ratio continues to be low with people not preferring to take loans. It was a dismal in agriculture sector with no tractor sold in Goa, where the bank had 17 branches, 11 of them in rural areas.'' The Bank's regional manager S K Tiwari and Chief manager, Goa, L S Savant were also present.

UNI