Dena Bank aims to bring down gross NPAs to 15% from 22%-23% by March 2019
The government had earlier announced its intention to merge Dena Bank, Vijaya Bank and Bank of Baroda to form the country’s second largest public sector bank.
Dena Bank said they are planning to bring down its gross non-performing asset (NPA) to 15% from 22%-23% by March 2019, which will help it reduce losses.
Its managing director and chief executive officer Karnam Sekar told reporters that “Our gross NPAs are about Rs. 16,000 crore. The target is to bring it down to Rs. 10,000 crore by the end of March 2019,”
He said, “Dena Bank hoping that we will settle most of the cases by March 2019. Huge accounts are in advanced stages of resolution. By March 2019, our gross NPAs, which are currently between 22 percent and 23 percent, will surely come down.
Sekar said that the bank has not added any NPA (non-performing asset) in the last two quarters, and in the September quarter, it reduced slightly. He also added that Dena Bank is working to improve its CASA (current accounts and savings accounts) ratio, which will positively affect its profitability.
"We have 40%-41% CASA ratio and with more focus, we are trying to take it to at least 44%-45%. He said, while hoping to "turn the corner" by 2019-2020 so, both NPA reduction and CASA improvement will improve the profitability of the bank,
Last month, the government had announced the merger of Bank of Baroda, Vijaya Bank, and Dena Bank, to create the country's second-largest lender, after the State Bank of India.
“We have formed an internal committee to decide on an action plan. I understand the other two banks to have formed such committees. He said that The CEOs will meet next week.” Asked about a timeline for the merger, he said, “The others in the merger process have talked about 2-3 quarters. We are also comfortable with that timeline.”