Dena Bank into non-life,credit cards
Dena Bank intends to venture into new areas like general insurance and credit cards.
By TNN |
KOLKATA: Dena Bank intends to venture into new areas like general insurance and credit cards. While the bank’s insurance plan is at a preliminary stage, its bid for an entry into the credit cards space is learnt to have gained momentum.
Dena Bank chairman and managing director PL Gairola said the bank would explore a partnership with State Bank of India (SBI) for the credit card foray. “We have approached SBI, which is yet to give a final nod,” Mr Gairola said here on Friday.
He was speaking to the media on the sidelines of a banking conclave organised by Federation of Indian Chambers of Commerce & Industry.
Regarding the general insurance business, the bank is likely to forge a three-way joint venture with another bank and one foreign insurance player. “We are in the initial stage of planning,” the CMD said. He indicated that Dena Bank may pick 26% stake in the proposed JV.
At present, the bank is selling risk policies of Life Insurance Corporation of India and Oriental Insurance Co. The bank would require fresh capital of around Rs 300 crore to fund its business during 2007-08. Mr Gairola said the bank was keen to maintain a capital adequacy ratio (CAR) above the 11% level. Its CAR is now at 11.52%.
“We plan to raise around Rs 300 crore by selling tier II bonds or perpetual debt,” he said. Dena Bank, with 1,140 branches and 270 ATMs, intends to achieve a business mix of Rs 57,000 crore by March 2008 from Rs 46,500 crore as on March 2007.
Dena Bank chairman and managing director PL Gairola said the bank would explore a partnership with State Bank of India (SBI) for the credit card foray. “We have approached SBI, which is yet to give a final nod,” Mr Gairola said here on Friday.
He was speaking to the media on the sidelines of a banking conclave organised by Federation of Indian Chambers of Commerce & Industry.
Regarding the general insurance business, the bank is likely to forge a three-way joint venture with another bank and one foreign insurance player. “We are in the initial stage of planning,” the CMD said. He indicated that Dena Bank may pick 26% stake in the proposed JV.
At present, the bank is selling risk policies of Life Insurance Corporation of India and Oriental Insurance Co. The bank would require fresh capital of around Rs 300 crore to fund its business during 2007-08. Mr Gairola said the bank was keen to maintain a capital adequacy ratio (CAR) above the 11% level. Its CAR is now at 11.52%.
“We plan to raise around Rs 300 crore by selling tier II bonds or perpetual debt,” he said. Dena Bank, with 1,140 branches and 270 ATMs, intends to achieve a business mix of Rs 57,000 crore by March 2008 from Rs 46,500 crore as on March 2007.
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