Dena Bank in talks with insurance companies to raise capital

Kolkata, Feb 13 (IANS) Public sector lender Dena Bank, which requires about Rs 250-300 crore of capital by March 2017, on Monday said it is in talks with some insurance companies to raise the sum.

"Raising capital has been a challenge for banks. We are in talks with insurance companies to raise capital. We require about Rs 250-300 crore of capital by March 2017," said bank's Chairman and Managing Director Ashwani Kumar here.

He also said the public sector banks have been getting the support from the Union government in terms of re-capitalisation and Union Finance Minister Arun Jaitley, in his latest budget presentation, provided Rs 10,000 crore for recapitalisation of banks in 2017-18 and announced additional allocation would be provided, as may be required.

The bank is expected to open 25 new branches in the current fiscal and of which, it will two branches in the North-East in March, Ashwani Kumar said at an interactive session at MCCI.

On the loan front, he said credit growth has been there but, no bulk off-take has been seen.

Commenting on the non-performing asset, he said the issue should be viewed sector wise. "The worst is over in terms of NPA issue. Steel sector is showing positives while roads sector is going ahead on a positive note. Power still remains as problematic area,a he said.

Asked about the various reports on merger of Dena Bank with Union Bank of India, he said, "Nothing is impossible. But we have not discussed anything about it."

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)