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Dena Bank to foray into non-life insurance business soon

PANAJI: As part of a move to expand its basket of value-added services, Dena Bank will foray into non-life insurance business soon.

Chairman and Managing Director P.L. Gairola, who was on a Goa visit, told presspersons on Saturday that the bank had taken a decision to approach the insurance regulator and thereafter it would scout for a partner.

Mr. Gairola disclosed that the bank had embarked on a major technology initiative with plans to invest Rs. 304 crore in 10 years. The plan was to bring 800 of its 1,140 branches under core banking network to cover about 85 per cent of its core business across the country.

The bank, he said, had got 40 branches covered under core banking network and by the end of March, 2008, it expected to cover 150 branches.

About thrust areas, Mr. Gairola said, “We are presently concentrating on low-cost deposits.

Advances to small and medium enterprises, agriculture and retail are our focus areas for growth apart from funding of infrastructure development.”

Armed with consistent efforts towards aggressive recovery, the bank has managed to bring down its high non-performing assets (NPAs) from about 25 per cent four years ago to 3.58 per cent (gross NPAs).

“We are looking to bring down the gross NPAs to 2.5 per cent and net NPAs to less than 1 per cent by the end of the current financial year,” said Mr. Gairola. Stating that the bank’s non-interest business had been growing at about 25 per cent, he said they were looking to venture into new areas of business such as gold coin sale through a business partner.

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Dena Bank to foray into non-life insurance business soon

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