The Hindu Business Line : Dena Bank forms cell to check credit quality

DENA Bank has set up a `credit monitoring cell' and a `slippages prevention task force' to ensure the quality of assets being created, and to arrest the slippages in non-performing assets.

The bank is re-strategising its business focus and taking steps to strengthen its foundation, in terms of credit, risk management and human resources.

The bank is looking to give a renewed focus to retail business in the near future and plans to set up 15 retail fin marts across the country by January 1, 2005.

At present, the bank has two retail fin marts in Mumbai.

"We are going systematically into the retail business and it will be a strategic shift in our focus. We want to grow this area of business where we have been slow so far. We have identified people in our organisation and are training them not only in terms of products but also in softer dimensions, like courtesies and maintaining customer relationships," said Dr Anil K. Khandelwal, Chairman and Managing Director, Dena Bank.

The bank is planning to hire 100 chartered accountants and MBAs, 100 agri officers and 75 officers with specialisations in the areas of human resources, law and economics."We are also trying to bring in the multi-bank perspectives to Dena Bank and have hired the services of retired banking officials who have served in senior positions in other leading banks," said Dr Khandelwal.

The bank has taken on two retired General Managers from other leading public sector banks, in advisory positions in the area of IT and credit risk management.

Mr K.R. Ramamoorthy, former CMD of Corporation Bank has been hired as a consultant, to advise the senior management of Dena Bank, including the CMD, on balance sheet management and other issues.

"Experienced bankers are being brought in to add value by helping the bank strengthen its foundations. The bank has also embarked on a massive internal promotions exercise in every cadre, that will be strictly performance related. We have also started grooming credit officers in a bid to create people for good credit management," said Dr Khandelwal.

Dena Bank is also focusing on cutting operational costs by rationalising branches wherever necessary.

The bank has fixed a price band of Rs 23-27 for its proposed second public issue.

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