Dena Bank's fund raising depends on credit offtake: CMD

State lender Dena Bank, which got the board approval to raise funds both by issuing fresh shares and bonds, would go to the market depending upon credit offtake, its CMD Ashwani Kumar said.
"We have got board approval to raise funds both by issuing fresh shares. But that will depend on growth in credit offtake," Kumar said at a news conference here today.
He said if the credit offtake went on at the current trend, then they would raise capital from Tier I bonds in tranches.
During the last three or four days, there had been good disbursements, he said.

The board approval is valid till March, 2016.
Regarding NPAs, he said there had been some improvements and all the accounts were being monitored at the apex level.

The bank has also lined up sale of bad assets to the tune of Rs 1,200 crore to ARCs.
The bank's target is to reduce gross NPA below 5.5 per cent by March 2016, he said.
Post-equity dilution, government's stake would come down from 65 per cent to 52 per cent.
The bank got board approval to raise Rs 2,500 crore from bonds.