Business   

Dena Bank to raise Rs. 250-300 crore

Ties up with UAE Exchange

MUMBAI: Dena Bank on Saturday said that it would raise Rs. 250-300 crore next month through the upper Tier-II route to meet its capital requirements.

"We have received our board's approval for raising Rs. 675 crore in this fiscal, out of which Rs. 250-300 crore is likely to be raised some time next month," Dena Bank Chairman and Managing Director, P. L. Gairola, told reporters here on Saturday after announcing the bank's rupee-drawing arrangement with UAE Exchange Centre LLC, Abu Dhabi. The amount will be raised domestically, he added.

Through this arrangement, the NRIs in the Middle East can remit funds to India by sending rupee drafts drawn by UAE Exchange on 200 designated branches of Dena Bank in India.

NPA recovery

Also, the bank in the current fiscal has set an ambitious target of Rs. 350 crore for recovery from its non-performing assets.

"We are likely to recover Rs. 200 crore of outstanding debt and Rs. 150 crore through write offs," he said.

The bank has roped in leading consultant PricewaterhouseCooper for selling a substantial portion of its NPAs. "We have provided them accounts worth Rs. 600 crore for due diligence and after evaluation we may decide to sell it in several phases," he said, adding that the first lot should be sold in the next couple of months.

He, however, declined to reveal the size of the assets to be sold. — PTI

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

`Planters should move in new direction'
Bigger corporates enter DTH service market
SEZ developers in a fix over conflicting laws
Dena Bank to raise Rs. 250-300 crore
Air Deccan's new game plan

Copyright © 2006, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu