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Nupur Mitra, Chairperson & Managing Director, Dena Bank

Yash Ved / 14:00 , Aug 06, 2012

Nupur Mitra, Chairperson & Managing Director, Dena Bank graduated in science and law, and has over three and half decade of commercial banking experience, both in India and overseas. After serving in Bank of India for over 34 years in various capacities at different locations which include overseas assignment heading London Branch of Bank of India and also as their Chief Executive of Europe Operations, she shouldered the responsibility as Executive Director of Indian Overseas Bank till October 31, 2011,before taking over the reigns of Dena Bank. During her long banking career at Bank of India, she was leading the teams in Financing to SME segment, Retail Banking products,Corporate credit and as Executive Director of Indian Overseas Bank, she was overseeing large corporates, International Banking, Treasury, Financial Inclusion, Risk Management, Human Resource Management, Business process Re-engineering and Public Relations.


Dena Bank was founded on 26th May, 1938 by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd. It became a Public Ltd. Company in December 1939 and later the name was changed to Dena Bank Ltd. In July 1969 Dena Bank Ltd. along with 13 other major banks was nationalized and is now a Public Sector Bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. Under the provisions of the Banking Regulations Act 1949, in addition to the business of banking, the Bank can undertake other business as specified in Section 6 of the Banking Regulations Act, 1949.


Yash Ved of IIFL provides the highlights of a media interaction where Nupur Mitra says “MSME has been identified as one of the growth engines for increasing credit portfolio of the Bank”.


Brief us about your Financials?

Dena Bank has posted results for the first quarter ended 30th June, 2012.


The net profit stood at Rs2.38bn, while the operating profit stood at Rs4.57bn.


The NIM stood at 3.06%.


The Net NPA ratio stood at 1.01% from 1.08%.


What is your target for NIMs?

We expect NIMs at 3% for FY13.


What kind of credit growth do you expect in FY13?

We expect 18% growth in deposits and 20% credit growth.


Share your Business Highlights for the quarter?

The overall performance for the quarter is quite encouraging. The Bank has witnessed CAGR of 22.30% in Total Deposits over the last two years.


During the quarter ended June-12, the Bank has raised Rs 8.5bn via lower Tier–II bonds.

The bank restructured Rs 8bn of its assets during the quarter.


MSME has been identified as one of the growth engines for increasing credit portfolio of the Bank. Central Processing Cells are set-up in all the 21 Regional offices for speedy processing of MSME proposals.


Interest rates on MSME advances are also significantly reduced to make it competitive.


The Bank has also entered into tie-up with different auto manufacturers for financing of three wheelers. The Bank is having 95 specialized MSME branches for better servicing to MSME sector.


Bank has appointed IDBI Intech (a PSU owned by IDBI) to suggest strategies and assist in the implementation of Business Processing Re-engineering exercise.


With the advancement of banking technology, the Bank has kept pace by introducing state-of-the-art products and services for its customers in the form of Internet banking, ATM, Mobile Banking, Phone Banking etc.


During the current year, the Bank has ambitious plan to expand the range of offerings through alternate delivery channels as under:

Utility Bill Payment through ATM and Mobile Banking, Income Tax payments through ATM,

Establishing call centre,

Card less remittance through ATM, besides Issue of Gift and Travel cards.


What are your plans for FY13?

Bank has opened 16 new branches during the first quarter. The bank is having 52 licences pending for opening of new branches. The Bank plans to open 100 new branches during FY13.


What are your plans for financial inclusion?

The Bank has successfully implemented Financial Inclusion Plan (FIP), which envisages road map for provision of banking services through banking outlet in 730 villages allocated to it.

The Bank has set up Ultra Small Branches in 683 villages, which are serviced through the Business Correspondent Model.


Similarly, the Bank has embarked upon urban financial inclusion plan for providing banking services to migrant workers/laborers in select urban areas in Gujarat. So far, 5 kiosks have been set up and the Bank plans to set up 100 Kiosks in urban areas during FY13.


What are your hiring plans?

The Bank has been imparting training to employees as an on-going process for development / improvement of their knowledge, skill and business confidence. Such training programmers are conducted in-house through various training centres and also through reputed institutes like NIBM, CAB, BIRD, ASCI, MDI, and JNIDB etc. Bank is also nominating for training programmers in different foreign locations.


Recruitment of fresh talent- Bank has completed process of recruitment of 500 Probationary Officers & 1090 clerks; selected candidates will join Bank shortly.


During 2012-13, the Bank will further initiate process of recruiting 193 Specialist/ Probationary Officers.