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Dena Bank.

BSE: 532121 Sector: Financials
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OPEN 31.00
VOLUME 87636
52-Week high 50.00
52-Week low 30.50
Mkt Cap.(Rs cr) 3,114
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 31.00
CLOSE 31.25
VOLUME 87636
52-Week high 50.00
52-Week low 30.50
Mkt Cap.(Rs cr) 3,114
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dena Bank. (DENABANK) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me great pleasure to place before you the Annual Report of your Bank for thefourth year in succession.

During the year:

i. Government of India selected your Bank for capital infusion of ' 407 cr based onefficiency parameters.

ii. Life Insurance Corporation of India subscribed ' 64.86 cr to Preferential Issue ofShares of the Bank.

iii. Bank raised an amount of ' 1000 cr by issue of Additional Tier 1 [AT1] Bonds at acoupon rate of 10.95%.

These capital infusions enabled your Bank to expand its business and post an improvedCapital Adequacy Ratio of 11% even in these stressful times.

The Bank's strong brand image was validated in the Economic Times Brand Equity surveyof "Most Trusted Brands - 2015" where your Bank was Ranked 10th amongst allPublic Sector Banks under the Strong Brand Equity category. As stakeholders of the Bankit is a proud moment for each one of us.

Before apprising you about other performance highlights of the Bank for the FY 2015-16I wish to touch upon the global and Indian economic environment and Indian bankingindustry trends which outline the challenges and opportunities in the operatingenvironment in which your Bank is functioning.

Economic Overview

Over the past years the global economy is reviving but at a slower than expectedpace. According to the International Monetary Fund's (IMF) latest projectionsthe worldeconomy is poised to grow at 3.2% in 2016 a moderate increase from last year's 3.1%. TheIndian Economy on the other hand grew at 7.6% for FY 2015-16 placing it at theforefront of Emerging Market and Developing Economies.

The Government's initiatives like ‘Make in India' ‘Digital India'"Startup India" "Standup India" and ‘100 Smart Cities' haveadded to the increased optimism for investments in the country. These initiatives coupledwith Government's commitment to fiscal targets prediction of above normal monsoon areexpected to brighten the investment climate. Further the Rural Sector reforms interestrate cuts and anticipated 7th Pay Commission award are expected to boost the householdconsumption demand.

Banking Industry Trends

During the year Government of India launched "Indradhanush" a comprehensiveframe work for improving functioning of Public Sector Banks in seven key areas.

Further RBI introduced Regulatory reforms such as Strategic Debt Restructuring (SDR)Scheme and Flexible Structuring Scheme to address the issues faced by large borrowersunder distress.

The Asset Quality Review (AQR) by the RBI is another path breaking measure for correctand transparent disclosure of the Assets portfolio of the banks. AQR is aimed at havingclean and fully provisioned bank balance sheets by March 2017. In the short run themeasures taken up for cleaning up the banks' balance sheets have impaired theprofitability of banks. However in the long-run this will enable banks to supportsustainable and profitable economic growth.

Performance of the Bank

The key highlights of your Bank's performance during the FY 2015-16 are:

• Business Mix of the Bank surpassed ' 2 lakh cr mark for the first time andreached a new height of ' 203242 cr as on 31st March 2016 from ' 196565 cr as on 31stMarch 2015.

• Total Deposits have grown to the level of ' 117431 cr as on 31st March 2016 ascompared to ' 115936 cr as on 31st March 2015.

• Savings Bank Deposits grew by 9.18% from ' 25706 cr to ' 28067 cr.

• CASA as percentage to Total Deposits has improved by 156 bps during FY 2015-16and stood at 29.27% as of March 2016.

• Total Advances of the Bank registered a growth of 6.43% and stood at ' 85811 cras on 31st March 2016 as compared to ' 80629 cr as on 31st March 2015.

• In this year of lean credit off-take Bank posted impressive performance incredit flow to vital sectors of the economy such as Agriculture and Retail. Bank's creditto Agriculture and Retail sectors grew by 37.50% and 10.48% respectively.

• Priority Sector Advances at ' 34117 cr increased by 19.90% during the FinancialYear and as on 31st March 2016 constituted 40.23% of Adjusted Net Bank Credit (ANBC)surpassing the regulatory minimum of 40%.

• Similarly Agricultural Advances at ' 15912 cr constituted 18.77% of ANBCsurpassing the regulatory minimum of 18%.

• Bank reduced its high cost deposits resulting in reduction of interest paid onDeposits from ' 7989 cr for FY 2014-15 to ' 7717 cr for FY 2015-16.

• Cost of Deposits for the FY 2015-16 reduced by 46 bps and stood at 7.20%.

• Your Bank has posted Operating Profit of ' 925.30 cr. and Net Loss of ' 935.32cr for FY 2015-16.

• In view of the net loss the Board of Directors of the Bank has not recommendedany dividend for FY 2015-16.

Asset Quality

• As of 31st March 2016 Gross NPA stood at ' 8560 cr as against ' 4393 crduring the previous year. In percentage terms it is at 9.98% as compared to 5.45% duringthe previous year.

• As of 31st March 2016 Net NPA stood at ' 5230 cr as against ' 3014 cr duringthe previous year. In percentage terms it is at 6.35% as compared to 3.82% during theprevious year.

• Cash recovery in NPA accounts increased from ' 595 cr in FY 2014-15 to ' 728 crin FY 2015-16.

• Recovery in Written-Off accounts has more than doubled and stood at ' 73 cr forFY 2015-16 as against ' 34 cr for FY 2014-15.

Capital Adequacy Norms:

• As on 31st March 2016 the Capital to Risk (Weighted) Asset Ratio (CRAR) underBasel III improved and stood at 11.00% as compared to 10.93% ason 31st March 2015 againstthe regulatory requirement of 9.625%.

• The Tier I capital ratio of the Bank increased from 7.67 % as on 31st March 2015to 8.59 % as on 31st March 2016 against the regulatory requirement of 7.625%.

Branch Expansion

Your Bank improved its outreach by opening 107 new branches during the

Financial Year. As on 31st March 2016 Bank is having 1846 Branches.

Human Resources Development:

During the yearyour Bank recruited 226 Probationary Officers 150 Specialist Officers486 clerks and 134 Sub-staff. The current people strength of the Bank is 13906 of which3684 are women.

Transformation through Technology:

Your Bank has been constantly trying to harness technology to provide value addedproducts and services to customers.

The establishment of E-Smart centers is one such initiative. In E-Smart centerscustomers can deposit cash deposit cheques withdraw cash get their passbooks printedand access their account through internet banking facility on 24*7 basis. As on 31stMarch 2016 Bank has established 74 E-Smart centers.

During the year 2016-17 your Bank proposes to provide the following technology enabledservices:

i. Point of Sale (POS) Terminals

ii. Additional 1200 ATMs

iii. Additional E-Smart centers

iv. Digital Wallet

v. TAB Banking

vi. IRCTC Payment through Debit Card

vii. Collection of Fees for Educational Institutions through Portal

viii. Loyalty Program for usage of Debit Cards

ix. Establishment of Next Generation Digital Branch.

New Initiatives by Bank

Some of the new schemes/products/enhancements introduced during the year are:

i. Dena Earn More

ii. Dena Stree Shakti

iii. NRIs Deposit- Compounded Interest Payment

iv. Dena Equipment Finance Scheme

v. Dena Professional Loan Scheme

vi. Modified Vehicle loan Scheme

vii. Dena Solar - Scheme for finance of Solar powered systems

viii. Pre-Approved Loan Facility

ix. Dena Online Locker Booking Facility

x. Online Registration for Internet Banking and Mobile Banking facility.

Inclusive Growth

Your Bank firmly believes that delivery of financial services at an affordable cost tothe vast sections of the disadvantaged and low-income groups is a National Priority. I amhappy and proud to share with you that your Bank has done exceedingly well in this area.

Here are some key highlights:

• Opened 35.67 lakh PMJDY accounts wherein total deposit mobilized is '570 cr .

• Aadhar Enrolment

• Enrolled 8.64 cr Citizens and Earned ' 32.26 Crores as noninterest income.

• Secured 1st Rank for Maximum Aadhar Enrolments during Pradhan Mantri Jan DhanYojana [PMJDY] camp

• Enrollments Under Social Security Schemes.

• Pradhan Mantri Suraksha Bima Yojana (PMSBY) - 24.46 lac policies

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) - 5.60 lac policies

• Atal Pension Yojana - 0.32 lac policies

Energy Conservation

Energy conservation is another important National Priority

Prime Minister while launching "Prakash Path" - "way to light"scheme observed that while it is much more economical to conserve power than to producethe same it is much more difficult to conserve power because it requires the activeparticipation of many people.

I am happy to share with you that your Bank has taken significant step to further thecause of conservation of energy.

Your Bank in the first phase in Head Office building replaced all conventionalelectrical bulbs with energy efficient LED bulbs and replaced ACs with 5 star ACs. Thiswill reduce energy consumption by 35% to 40%.

It is planned to extend the initiative to other buildings and offices of the Bank.

Future Outlook

For the FY 2016-17 your Bank will primarily focus on reducing NPA.

For growth Bank will continue to focus on CASA deposits and advances to AgricultureRetail & MSME sectors.


As I conclude I express my sincere thanks and gratitude to Government of IndiaReserve Bank of India various State Governments Securities and Exchange Board of IndiaInsurance Regulatory and Development Authority of India and all other Stake Holders fortheir valuable patronage guidance support and timely advice and seek their continuedsupport and co-operation.

My profound thanks are also due to all the Shareholders Customers and Well-Wishers fortheir valuable patronage and support during the challenging period of FY 2015-16 and hopeto receive their continued patronage.

The Board of the Bank has been proactively guiding the Bank during these testing timesand I want to place on record the appreciation for their encouragement and guidance.

I am also thankful to the NABARD SIDBI and other Financial Institutions Banks andCorrespondents for their continued support to the Bank.

Last but not least I wish to place on record the deep appreciation for untiring andrelentless efforts put in by all the staff members of the Bank without which the progressachieved in these demanding times would not have been possible.Family members of thestaff also need to be acknowledged for their continued support to the Institution.

I look forward for continued cooperation and support from all stakeholders forsustained progress of the Bank in the years to come.

By Order of the Board of Directors


(Ashwani Kumar)

Chairman and Managing Director