Nov 12, 2012, 10.21 AM | Source: PTI
Public sector Dena Bank expects to achieve a total business of Rs 1.5 lakh crore by the end of this fiscal on the back of sound growth in deposits and advances, a top bank official said.
"We will end this fiscal with a total business of Rs 1.5 lakh crore," Dena Bank Chairman and Managing Director Nupur Mitra told PTI.
The bank aims to have a credit growth of 18 per cent and deposit growth of 17 per cent in FY13, Mitra added.
By the end of September quarter, the public sector lender had gross advances of Rs 59,406 crore and total deposit of Rs 83,552 crore, taking the total business to Rs 1.43 lakh crore.
The bank, which has seen advances growth of 37.83 per cent and deposit growth of 30 per cent in the second quarter of FY13 over the same period last year, however, said reduction in rates in some segments had an impact on its net interest margin.
"Reduction in NIM in the last quarter was due to rationalisation of loan rates in some segments. However, we hope to have a NIM of around 3 per cent by the end of this financial year," she said.
Referring to reduction in interest rates after RBI's recent reduction in cash reserve ratio (CRR), Mitra said slashing of rates would happen as the cost of deposits go down.
"We have already reduced rates in specific segments. So, there is a possibility of reduction in base rates as the cost of deposit goes down," he said, adding she expects reduction in cost of deposits to reflect on margin in the current quarter.
Dena Bank today reported a 23.79 per cent rise in net profit to Rs 239.64 crore in the second quarter of current financial year on the back of increase in core income along with sound performance of standard assets.
Net profit of the bank stood at Rs 193.58 crore in the same period last fiscal.
Total income of the bank increased by 33.23 per cent to Rs 2,327.84 crore in July-September period, compared to Rs 1,747.19 crore reported in the same period a year ago.