Dena Bank turns east to grow CASA and SME loans

KOLKATA: State-run Dena Bank, the western India focused lender, is turning to east as the region appears less crowded and shows opportunity.

Source from (The Economy Times): http://articles.economictimes.indiatimes.com/2013-06-17/news/40027532_1_ashwani-kumar-sme-casa
Published: Jun 17, 2013

Chairman and managing director Ashwani Kumar said the bank has decided to focus especially on West Bengal and Bihar in the east to mobilise the untapped low cost deposits and lend to small scale sectors.

It plans to bifurcate the Kolkata zone into Kolkata and Patna as it increases its eastern focus. West Bengal, Odisha and eight northeast states will be under Kolkata zone while Bihar and Jharkhand will be managed by the Patna zonal office.

"These are good CASA (current and savings account) and SME belts," Kumar said. He was here to inaugurate a branch in an unbanked village, 20 km away from the city.

CASA deopsits are less costly and rise in the ratio adds to profitability. In the asset side, banks earn better returns from SME loans.

Dena Bank plans to open at least 13 more branches in the east and northeast regions including five in the state in 2013-14.

This region contributes just about 4% or Rs 7000 crore of Dena's business of Rs 1.64 lakh.

Kumar said the lender is also focusing on Haryana and Punjab to improve its farm lending. The bank may add 150-200 branches this year across the country.

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