The Hindu Business Line : Dena Bank plans major thrust on retail biz

Mr M.V. Nair (left), CMD, Dena Bank, and Mr Pankaj Razdan, Managing Director, Prudential ICICI AMC, at a press conference in Mumbai on Tuesday. — Paul Noronha

Mumbai , Sept 27

DENA Bank is planning to focus on retail business in a big way. The bank's retail business, currently growing at 110 per cent, will see fresh focus by way of more FinMarts for selling retail loans and third party products. The plan is to increase the number of FinMarts, from 9 currently to 100 within a year.

Mr M.V. Nair, Chairman and Managing Director, said: "We have brought in a clear shift in the lending portfolio and are focusing on retail, agriculture, and SMEs."

He was speaking to newspersons after announcing a tie-up with ICICI Prudential Asset Management Company for distribution of mutual funds.

Dena Bank also has a tie-up with UTI Mutual Fund. The bank is looking at an income of Rs 2 crore from marketing mutual funds and an income of Rs 10 crore from its insurance tie-ups.

The bank is targeting a total business of Rs 39,000 crore by the end of this fiscal against Rs 32,000 crore in 2004-05.

Dena Bank is also looking to reduce its NPAs to two per cent through better cash recovery. The bank is looking at 20 per cent growth in deposits this year. But other savings instruments like postal savings are affecting the bank's deposit mobilisation, Mr Nair said.

On interest rates, he said: "I don't see a hike in interest rates in the next 3-4 months."

The bank is also looking to offer advisory services for wealth management within a year, Mr Nair added.

Mr Pankaj Razdan, Managing Director, Prudential ICICI AMC, said that the company hoped to gain from the huge network of public sector banks. The company also has a tie-up with UCO Bank and 16 private sector banks.

It currently has Rs 21,000 crore assets under management and is targeting Rs 23,000 crore by December 2005. About 45 per cent of these come from the banking channel, Mr Razdan said.

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