Dena Bank to foray into syndication

State-run Dena Bank plans to enter the syndication business. For this, the bank has set up a team in Mumbai and fixed a revenue target of Rs 25 crore for 2010-11. Besides, the bank has appointed an agency to identify the potential countries and business model for its overseas foray.

The government of India’s shareholding would increase by 10 per cent after the proposed capital infusion of around Rs 600 crore in the current financial year.

Chairman and Managing Director D L Rawal, who was here to open the bank’s 1,248th branch in the country at Tambaram near Chennai said the bank had recruited four people for the syndication business, which was expected to start by December this year. He added the bank was working on a feasibility report on the sector.

 

“To start with, we are looking at infrastructure and manufacturing sectors and a revenue of Rs 25 crore,” he told Business Standard.

The bank is starting operations from Mumbai and will expand it to other parts of the country in a phased manner.

Earlier, talking to reporters, Rawal said the bank had appointed a consultant to study the potential markets for the foray. “We are looking at countries like the UK, Africa, West Asia, and Canada. The consultant will submit the reports in the next six months on the operation and business model based on which we will select three countries to start with,” said Rawal.