Dena Bank to tie up with Sidbi to tap SME sector

Mumbai, Aug 1 | Updated: Aug 2 2005, 05:30am hrs
The state-run Dena Bank, in line with extending its corporate banking activity, now plans to tie-up with Sidbi to enhance its exposure to the small and medium enterprises (SME) segment.

"We expect this segment to grow by 60% to Rs 550 crore. The idea is to distribute the risk and protect and improve the yield," said MV Nair, CMD, Dena Bank

Dena Bank expects a better performance in the next quarter, since it has lined up growth plans and derisked its portfolio. The bank posted a net loss of Rs 189.3 crore for the quarter ended June 30, 2005.

The bank however, plans to maintain its thrust on the retail front. It expects its retail segment to grow by 65% by the end of this fiscal by adding another Rs 800 crore to its portfolio.

The bank recently took one-time hit of Rs 199.71 crore by way of depreciation on shifting of securities from available for sale category to held to maturity. " We have now completely derisked our portfolio and have also restructured our loan portfolio . This definitely calls for a healthy performance of the bank in the next quarter, added Mr Nair.