"We feel the bank has many branches which are not doing much business. Thisis causing strain on our profits, especially in the current scenario of thinning spreads. The committee will report on the viability of all our branches and recommend steps of rationalisation," Dena Bank chairman and managing director (CMD) Ramesh Mishra said.

"Unviable branches are mainly concentrated in rural areas. According to the rules of nationalisation, we were required to set up a lot of branches in remote areas despite the lack of business potential," he said.

"Some of the urban branches are also not registering satisfactory performance. These are more due to managemental inefficiencies rather than lack of business potential. Such branches can be turned around by revamp strategy and infrastructure," Mishra said. The bank currently has1,167 branches across the country. It has already converted 56 branches into satellite branches.