Dena Bank eyes credit growth of 20-25% in current fiscal

The monsoon shortfall so far has not deterred Dena Bank's credit growth projections for the current year. "We are looking at credit growth of 20-25% during the current fiscal," Dena Bank Chairperson and Managing Director Nupur Mitra said today at an interactive session with the Bharat Chamber of Commerce.

She said so far the rainfall deficit has not caused any major worry on credit offtake, but if it worsened then it could be a problem. Till June, there was deficit of around 30%. But, last weekend rainfall had raised hopes of improvement in the monsoon.

Mitra said the bank was able to raise Rs 850 crore in tier II capital at 9.23%. "We have adequate core capital. The Rs 850 crore we raised and plouging back of profit will keep the bank going for the next three years and we do not think under the current growth projection we will require any further capital," she said when asked about capital requirement under Basel III.

The bank wants to continue with net interest margin of 3% to strike a balance on risk-reward model of the bank.