The bank is in the process of mandating one institution to train its frontline staffers on how to deal with customers. It is also planning to tie up with a panel of builders to augment its housing loan assets. Having a reatil asset of Rs 700 crore, the bank is planning to double it by March 2005.
The turnaround strategy includes focus on recovery of bad loans, raising its capital adquacy from its current 9.48 per cent level, inculcating a reatil culture in the bank and human resource development.
We want to become a financially healthy medium size boutique bank, said bank chairman and managing director (CMD) AK Khandelwal, in an exclusive interview to FE. Training would be a major area in this plan. We are grooming young credit officers across the country, Dr Khandelwal said, adding: Cost of no training can be hazardous.
The bank has plans to set up 40-50 retail boutique called Dena Retail Fin Marts to don a retail face. We already have the infrastructure. We are now devising a strategy to go all-out. This will cost not more than Rs 5 crore, said the CMD.
The bank, which was saddled with NPAs of Rs 1,484 crore on a gross basis (14.85 per cent) and Rs 884.4 crore on a net basis (9.40 per cent), is encouraing a recovery culture in the bank. A separate daily control room has been opened to track the recovery process, Dr Khandelwal informed.