Dena bank personal loan india

Finalises sale of Rs 188 crore bad assets before end of FY08.

Mumbai-based Dena Bank will auction Rs 188.4 crore of its non-performing assets (NPAs) to bring down gross NPAs below 2.5 per cent by March 2008.

"We have finalised a portfolio of 49 borrowers (including operating and closed units) with an aggregate principal balance of Rs 188.40 crore. These loans will be sold in either one or multiple tranches," a senior bank official said.

All of the loans are commercial. Chairman and Managing Director P L Gairola said,"This process (auction) will help secure better value for these assets than sale through bilateral negotiations."

The move is aimed at cleaning up the balance sheet and, perhaps, add to the bottom line. The bank wants to complete the auction process by February-end. Three prospective investors, including an asset reconstruction company, have shown interest, another official said.

The data room for investors will open on February 20 and the entire process is expected to be completed before close of the financial year.

At 3.09 per cent, the bank's gross NPAs declined to Rs 657.01 crore at December 2007-end from Rs 857.83 crore (4.99 per cent) a year ago.

The public sector bank has a target of reducing its gross bad loans to below 2.5 per cent by end of March.

Net NPAs reduced to Rs 293.76 crore (1.41 per cent) at end December 2007 from Rs 414.39 crore (2.47 per cent) a year ago. It wants to bring the net NPA ratio below one per cent by financial year end.

Public sector lender Dena Bank today said it has appointed M Surya Naik as a non-official Director on the board of the bank.

The Central government has appointed M Surya Naik as the part-time non-official Director on the bank's board for a period of two years, Dena Bank informed the Bombay Stock Exchange.

Shares of Dena Bank were trading at Rs 87.25, up 2.47 per cent in the afternoon trade on the BSE.

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Public sector lender Dena Bank on Tuesday said it has tied up with Export Credit Guarantee Corporation (ECGC) for marketing insurance-oriented products to exporters through its network of branches.

"The tie-up with ECGC would be beneficial for our exporter customers, who would get insurance protection against payment risks under various ECGC policies at our branches," Dena Bank Chairman and Managing Director P L Gairola said in a statement here. Also compare education loan rates for better rewards for your needs.

Dena Bank was presently positioning itself as a financial supermarket to provide its customers a wide range of products and services, including insurance and mutual funds, with better access and greater convenience to different customer segments.

Public sector lenders Dena Bank and UCO Bank on Tuesday ruled out their merger with market leader State Bank of India.

"It is totally baseless. It seems to be some rumour," UCO Bank Chairman and Managing Director S K Goel told PTI when asked about reports that SBI was contemplating acquiring the two banks, besides the ongoing integration of the associate banks with itself.

Such an issue has never come before the board for discussion, he said. Dena bank offering you the right way to compare personal loan and also the minimal interest rates.

Dena Bank, on the other hand, debunked the report saying these were "not correct" and it had no knowledge if SBI had any discussions with others about any merger proposal.

Bhaskar Sen has taken over as the Executive Director of Dena Bank.

Prior to this appointment, Sen was General Manager in Union Bank heading new businesses, including overseas expansion and strategic initiatives, a Dena Bank release said here today.

Sen has wide experience in the field of treasury, forex and merchant banking.

In 2006, he successfully managed the follow-on public issue of Union Bank.

Dena Bank has reported a net profit of Rs 92.1 crore for the quarter ended September and increase of 34% over the net profit of Rs 68.7 crore in the corresponding period last year. The increase in net profit has been largely on account of a 43.5% jump in other income.

Other income rose from Rs 73.8 crore to Rs 105.9 crore in the corresponding period last year. In a statement issued here the bank said that Accounting Standard (AS)-15 (Revised) on Employee Benefits is effective from the current year.

However, pending Reserve Bank of India guidelines, the Bank has provided an adhoc amount of Rs 38.54 crore/Rs 19.94 crore during the half year/quarter on an estimated basis.

We recommend a sell in Dena Bank at current levels.

It is evident from the weekly chart of Dena Bank that it was consolidating between Rs 20 and Rs 40 since April 2004.The stock broke out of this range in May and rallied to mark a life-time high of Rs 70 in September.

The stock is in a medium-term down trend since this peak. It has penetrated the 21-day moving average and the medium term up trend-line, implying a medium-term trend reversal. The daily momentum indicators are also signalling a sell.

Dena Bank has offered to wholly fund a business plan about community health, developed by Debayan Sinha, Rochak Agarwal and Amit Amitabh, second year students at XLRI Jamshedpur. This novel business idea proposed the distribution of packaged health food delivered to corporates in cities like Mumbai, Delhi, Bangalore, etc.

The plan came into focus at the Social Entrepreneurship Fair held at the Indian Institute of Management, Ahmedabad. The fair aims to encourage entrepreneurs who would act as agents of change in society and is a meeting point for active social entrepreneurs, emerging social entrepreneurs and venture funds. The entry from XLRI was made in the Community Health Category and addressed the need of a healthy India.

SEBI's proposal to remove entry load (an initial charge on the fund) on direct MF investments is good news for retail investors.

This facility would be available for investors who apply directly to the asset management company (AMC) either through the internet or by visiting the premises of the fund house without involving the services of the agents.

This move is progressive as entry loads only reduce overall returns earned by mutual fund investors. The entry loads - those that are charged at the time of investment - can range anywhere from 1-2 .25% of the investment amount depending upon the category of the scheme.

So, for instance , an investor seeking to invest Rs 10,000 in an equity fund actually ends up paying Rs 225 as entry load while the rest is invested. Says Gaurav Mashruwala, a certified financial planner, "An investor who is equipped to make his/her own decision on choosing of schemes and has the time to visit a mutual fund office directly will save a substantial amount.

KJMC Capital has maintained buy rating on the stock . Dena bank has posted decent financials during FY06-07 with decent credit and deposit growth along with significant improvement in asset quality. Bank will continue generating decent returns for the shareholders riding on higher growth trajectory.

KJMC capital research report on Dena Bank

Improving Financials Q1 FY 08 Result Update

During Q1 FY 08, Net Interest Income (NII) and other income registered growth of 14% and 21% respectively. Further PAT reported a jump to Rs.55.6 cr up from Rs.18.5 cr during corresponding quarter last year. Net interest margin (NIM) fell to 3.11 per cent at the end of June from 3.22 per cent a year earlier, however, improved by 10 basis points from 3.1 per cent at the end of March 2007. Yield on advances increased by 200 basis points to 10.02 per cent, the cost of deposits rose by 91 basis points to 5.57 per cent in the quarter ended June 2007 from a year earlier.

The bank's deposits increased by 15.71 % to Rs 27,968 cr, while advances grew 20.27 % to Rs 18,255 cr. Despite credit growth, asset quality continued to improve with Net NPA ratio coming down to 2.07% from 3.25% a year earlier. Bank plans to bring down its gross NPA level and net NPA level to 2.5 per cent and 1 per cent, respectively by March 2008.

anks virtually waged war against loan defaulters in the year 2001 to tackle the chronic problem of non-performing assets, now at Rs 56,600 crore, even as financial institutions pleaded with government for bailouts and to start preparation for transition to 'Universal Banks'.

"Wilful defaulters should be jailed," an angry Finance Minister Yashwant Sinha said after reviewing public-sector banks, whose financial health has been suffering under piles of non-performing assets (NPAs).

Canara Bank, Dena Bank, Indian Bank and Union Bank of India also had gross NPAs of over Rs 2,000 crore.

While the larger banks could absorb the shock better, NPAs also plagued the financial healths of half a dozen weak banks.

In percentage terms, Dena Bank topped the list with gross NPAs of 26 per cent of its advances, followed by United Bank of India (21 per cent), Indian Bank (20 per cent), Punjab & Sind Bank (19 per cent) and Allahabad Bank (17 per cent).

Mumbai-based public sector lender Dena Bank has reported an over three fold rise in its first quarter net profit, at Rs55.58 crore, compared to Rs18.49 crore in the year-ago period.

Total income increased by 30.17 per cent to Rs702.42 crore for the April-June 2007-08 quarter, compared to Rs539.61 crore for the same quarter of the previous year, Dena Bank said in a filing with the Bombay Stock Exchange (BSE).

Net interest income grew by 13.85 per cent to Rs224.69 crore in April-June this year from Rs197.36 crore in the year-ago quarter.

While net interest margin (NIM) fell to 3.11 per cent from 3.22 per cent a year earlier, the NIM improved by 11 basis points from 3 per cent in January-March 2006-07.

Yield on advances increased by 200 basis points to 10.02 per cent, the cost of deposits rose by 91 basis points to 5.57 per cent in the quarter ended June 2007 from a year earlier. Non-interest income grew 20.83 per cent to Rs75.17 crore in the first quarter from Rs62.21 crore a year earlier.

Dena Bank on Monday revised interest rates on NRE and FCNR (B)/RFC deposits with effect from July 1.

Interest on NRE Rupee term deposits for a period of one year and above but less than two years and two years and above but less than three years will now be 5.43 per cent as against the earlier 5.39 per cent and 5.32 per cent respectively. For three years, the new rate applicable will be 5.46 per cent as against the earlier 5.30 per cent, a bank release said here.

Interest rates on USD-denominated FCNR (B)/RFC term deposits on maturity of one year and above but less than two years and two years but less than three years, will be 4.68 per cent as against the earlier 4.64 per cent and 4.57 per cent respectively.

You are eligible if:

· You are a permanent employee between 24 to 55 years having worked for at least 2 years in a Govt. or PSU/ reputed organization.

· You have a gross monthly income of at least Rs. 5,000/-. Income of any other earning member ( co-applicants) can be clubbed for enhanced eligibility.

· You can have a salary disbursement arrangement with us or provide an undertaking form your employer.

Loan Amount:

· Minimum- Rs. 15,000/-

· Upto- Rs. 1 lakh or 9 times the net monthly income whichever is less.

Indian banks have found an unlikely ally in India Post or the department of postal services. Very soon, village post offices will offer personal and agricultural loans, carry out credit and background checks and even offer villagers the ease of withdrawing and depositing money using smart cards.

The first of these initiatives will be signed with India Post, Corporation Bank and Dena Bank soon, followed by one with Union Bank.

General purpose loans or personal loans ranging from Rs 5,000 to Rs 25,000 will be available from Corporation Bank and Dena Bank while others will offer agricultural loans of up to Rs 25 lakh to buy equipment such as tractors. Even loans up to a crore are being discussed.