MUMBAI: Public sector lender, Dena Bank expects a capital infusion of Rs 600-crore from the government in the current fiscal to fuel its business growth, a top bank official said here on Monday.

“We need a total of Rs 1,300-crore over the next three years. We expect to receive Rs 600 crore from the government in this fiscal to fuel our business growth,” Dena Bank’s chairman and managing director, Mr D L Rawal, told reporters here.
The remaining Rs 700-crore is likely to be received in two tranches of Rs 400-crore and Rs 300-crore each in the next two fiscal, he said.
The bank is confident of achieving a 22 per cent credit growth in the current fiscal, little higher from the RBI target on the back of a strong revival in credit demand.
“We will be able to achieve a 22 per cent credit growth and 20 per cent deposit growth in the current fiscal,” Mr Rawal said.
The government has set a growth target of 20 per cent for banks both in the credit and deposit segments in the current fiscal.
Dena Bank has clocked a 20.67 per cent jump in its net profit for the quarter ended June 30 to Rs 138.79 crore as against Rs 115.02-crore during the same period last year.
“We have posted a good profit in June quarter and hope to perform well in the remaining quarters of the current fiscal,” he said. The Bank’s total income stood at Rs 1,221.78 crore in the June quarter as against Rs 1,123.82 crore, an increase of 8.72 per cent over the year-ago period.
The bank’s gross non-performing assets (NPAs) to gross advances went down to 2.11 per cent in the quarter from 2.22 per cent during the same period last year.
Its net NPAs, grew to 1.49 per cent at Rs 561-crore for the first quarter ended June 30 from 1.26 per cent in the corresponding period of the previous fiscal.
The bank’s current account and saving account (CASA) deposits increased to Rs 19,026-crore in the June quarter from Rs 15,034-crore last year.
“We have a target of CASA growth of 23 per cent in the current fiscal,” he said.