Dena Bank plans revival strategy

Mumbai: Dena Bank, which recorded a loss of over Rs 250 crore during 2000-2001, has come up with a time-bounded strategy to revive the bank.

The banks executive director SC Vohra said after conducting an extensive SWOT analysis, it has come up with a programme which can ensure that the bank would make profits in a three-to-four years'' period.

Vohra said the control on growth of risk-weighted assets is essential. The growth in advances and the consequent risk-weight levels can be neutralised by temporary shedding of advances towards the yearend through inter-bank participation certificates.

As part of the strategy, the bank is considering focussing only on 75 to 100 identified branches for credit expansion. For fresh businesses, the concentration will be on advances, housing, consumer and education loans. A system of prior risk exposure clearance from a committee of executives at the corporate office is being considered for all advances of Rs 1 crore and above for both fresh and enhancements.

On the target to cut NPAs, all such accounts will be closely reviewed and wherever feasible, additional marketable security will be obtained. A list of top 100 NPA branches have been identified and senior executives from the head office will monitor these branches.

Vohra also said the committee of directors of the bank for monitoring NPAs may directly interact with the borrowers in cases of defaults of Rs 10 crore or more.

The monthly reporting system on upgradation or recovery performance introduced by the recovery management department would be vigorously implemented and information of the system will flow right up to the level of the executive director and the chairman-cum-managing director.

The bank will also introduce incentives for rewarding performing employees as per the norms permissible by the Indian Banks Association and the RBI.