The public sector bank, Dena Bank, has announced that it is targeting to alleviate its net interest margin to 3.10 percent by the end of March. To achieve this, the bank is taking steps to augment its share of low cost deposits, like the current accounts and savings account (CASA) deposits.
Making this announcement, Chairman and Managing Director of Dena Bank, Mr. Ashwani Kumar said, "We are targeting to increase the Casa deposits share to 33 per cent by March from the current 31 per cent. That will take the NIM up to 3.10 per cent." Mr. Kumar was appointed as the Chief of the bank recently and he took charge of the office on January 1, 2013.
He further added that the field staff and officers of the bank are already on a drive to hike the CASA deposits. He said, "We have good presence in Maharashtra and Gujarat, therefore, meeting the targets should not be a worry." He also added that the CASA segment of the bank has not witnessed much change in the past several quarters and so a push is necessary.
Reportedly, Dena Bank has been able to bring down its high cost bulk fixed deposits, from more than 22 percent to 18 percent.
Apart from this, the bank will focus on retail segment loans and loans to small businesses to drive its business growth. In the coming two weeks, the bank may set up 15 new branches in Punjab and Haryana regions.