PROFIT GROWTH
1. Net Profit recorded a quantum rise of 17.47 %, up from Rs. 359.79 Crs for the year ended Mar 08 to Rs. 422.66 Crs for the year ;
2. Net Profit for the Qtr ended March 09 was at Rs. 111.17 Crs as against Rs.110.99 Crs for the corresponding quarter in the previous year;
3. Operating Profit for the year improved by 5.82 % up from Rs. 686.44 Crs for the FY 2007-08 to Rs726.36 Crs;
4. Operating Profit for the Qtr ended Mar 09 at Rs. 187.77 Crs as against Rs. 218.93 Crs for the corresponding quarter in the previous year;
5. Operating profit excluding profit from sale of Securities had shown an increase from Rs. 596.42 Crs for the FY 2007-08 to Rs. 672.04 Crs for the year.
CAPITAL ADEQUACY RATIO
1. Capital Adequacy Ratio stood at 10.73% as against 11.09% recorded in the previous year ended on Mar 08;
2. The Tier I Capital showed a marked improvement of 15.92 % up from Rs. 1535.55 Crs as on Mar 08 to 1780.97 Crs as at the end of the year;
3. Tier I CRAR stood at 6.01 % as at the end of the year as against 6.75 % as on March 08;
4. CRAR as per Basel – II stood at 12.07.
BUSINESS GROWTH
1. Business Mix improved by 26.01% to Rs. 72235.97 cr as at the end of the year, from Rs. 57324.34 cr achieved as on March 08;
2. Total Deposits increased by 26.83% to Rs. 43050.61 crore as at the end of the year as against Rs. 33943.18 cr as on March 08 ;
3. Low-cost deposits constituted 35.97% of the Total Deposits.
4. Gross Advances recorded a growth of 24.82% during the year as compared to a growth of 25.15% posted during the previous year and stood at Rs. 29185.36 crs as against Rs. 23381.16 cr as on March 08; Average advances recorded a growth of 17.53% as compared to 20.20% posted during the previous year ended on March 08;
5. The Credit Deposit Ratio for the year stood at 67.82%; Incremental CD Ratio was at 63.73 %, though lower than 75.13 %, recorded during the previous year ended on March 08;
6. SME Credit increased from Rs. 3885 Crs as on March,08 to Rs.4775 Crs at the end of quarter under review, representing a growth of 22.91%. SME Credit constituted 16.36% of Gross Credit.
ASSET QUALITY
1. Gross NPA increased by 8.41% to Rs. 620.77 crs as at the end of the year, as compared to Rs. 572.60 Crs as on March 08; The Gross NPA Ratio declined by 32 bps from 2.45 % as on March 08 to 2.13 % as at the end of the year;
2. Net NPA increased by 45.46% to Rs. 313.37 as at the end of the year as compared to Rs. 215.43 Crs as on March 08; The Net NPA Ratio increased by 15 bps from 1.09 % as of March 08 to 1.09% as at the end of the year;
3. Cash Recoveries including other credits stood at Rs. 188.72 Crs as compared to Rs. 184.86 Crs achieved during previous year;
4. Percentage of Cash Recovery to Opening NPA was 32.96 % during the year as compared to 24.83% during the previous year;
5. Upgradations improved from Rs. 114.07 Crs posted during the previous year to Rs. 191.38 Crs achieved during the year;
6. The cash recovery & upgradation put together improved to 380.10 crs which amounts to 66.38% of the opening NPA as against previous year’s 40.15%;
7. 949 Recovery Camps were organised which was attended 9692 borrowers resulting in settlement of 1538 accounts;
8. Action innitiated in 1782 accounts involving a sum of 222.68 crs under SARFAESI Act;
EARNINGS ANALYSIS
1. Interest Income posted a higher growth of 28.84% during the year as compared to 28.17% posted during the previous year; Interest income stood at Rs. 3447.50 Crs for the year as compared to Rs. 2675.90 Crs during the previous year; Interest income for the quarter ended March 09 also posted a higher growth of 22.67 % at Rs. 895.79 Crs as compared to Rs. 730.24 Crs for the corresponding quarter during the previous year;
2. Interest Income on advances increased by 31.36% to Rs.2565.98 cr during the year as compared to Rs. 1953.37 cr for the previous year; The growth in the income was marginally lower as compared to 40.35 % posted during the previous year; Interest income on advances increased by 22.56 % for the Qtr ended Mar 09 as compared to the corresponding quarter in the previous year;
3. Non-Interest Income declained by 10.04% at Rs. 430.12Crs as compared to Rs. 478.12 Crs posted during the previous year. The non-interest income for the quarter ended Mar 09 also declained by 8.31% at Rs. 140.04 Crs as compared to Rs. 152.74 Crs during the corresponding quarter in the previous year;
4. Interest Expenses rose by 31.14% at Rs. 2383.07 Crs as compared to Rs. 1817.14 Crs incurred during the previous year; The interest expenses for the quarter ended March 09 also increased by 31.11% as compared to the corresponding quarter in the previous year;
5. Interest expenditure on deposits increased by 31.30% to Rs.2255.90 cr during the year as compared to Rs. 1718.11 cr. for the previous year; The increase in the expenditure for the quarter ended March 09 was 32.42% over March 08 and stood at Rs624.14 cr. as compared to Rs. 471.35 Crs during the Qtr ended Mar 08;
6. Operating Expenses increased by 18.10 % during the year and were at Rs. 768.19 Crs as compared to Rs. 650.44 Crs for the previous year ended on March 08; The increase in Operating Expenditure for the quarter ended March 09 was 17.28% over March 08 and stood at Rs191.23 cr. as compared to Rs. 163.06 Crs during the Qtr ended Mar 08;
RATIO ANALYSIS
1. Cost of Deposits was up by 46 bps and stood at 6.36 % for the year as compared to 5.90% for the previous year; Cost of Deposits for the Qtr ended Mar 09 was higher by 48 bps at 6.56 % as compared to 6.08% for corresponding quarter in the previous year;
2. Yield on Advances (YoA) increased by 60 bps to 10.71% for the year up from 10.11% posted during the previous year; YoA was higher by 43 bps at 10.51% for the Qtr ended Mar 09 as compared to 10.08 % for the corresponding quarter in the previous year;
3. Yield on Investments excluding profit on sale of securities for the year increased by 16 bps to 7.04% as compared to 6.88% during the previous year; For the quarter-ended Mar 09, it got dropped by 35 bps to 6.91% as compared to 7.26% for the corresponding quarter in the previous year;
4. Interest Spread to Average Working Funds dropped by 6 bps to 2.57% during the year as compared to 2.63% achieved during the previous year;.
5. Net Interest Margin dropped by 27 bps to 2.48% during the year as compared to 2.75% achieved during the previous year; The same was also droped by 62 bps to 2.23% for the quarter ended March 09 as compared to 2.85% achieved during the corresponding quarter in the previous year;
6. Return on Average Assets (annualised) for the year was lower by 4 bps and stood at 1.02 % as compared to 1.06 % posted during the previous year;
7. Cost to Income Ratio increased by 275 bps to 51.40% during the year as compared to 48.65% achieved during the previous year; Cost to Income ratio however stood at 50.46% for the quarter ended March 09 as compared to 42.69% posted for the corresponding quarter during the previous year;
8. Coverage Ratio for the year was droped by 44 bps to 2.97 as compared to 3.41% achieved during the previous year;
9. Earning Per share was at Rs. 14.74 as compared to Rs. 12.54 for the previous year;
10. Book Value Per Share (excluding Revaluation Reserve) improved by Rs.12.48 and stood at Rs.62.06 as at the end of the year as compared to Rs. 49.18 as on March 08;
11. Business mix per branch (with Inter Bank Deposit) improved by 23.00% and stood at Rs. 66.45 Crs as compared to Rs. 54.03 Crs as at the end of previous year;
12. Profit per Branch improved by 14.66% and stood at Rs.38.88 lacs as compared to Rs. 33.91 lacs for the previous year;
NEW INITIATIVES AND THRUST
Expanding Outreach
1. 26 New Branches were opened during the year including the 1st foot print in the state of Meghalaya, thus increasing the total number of branches to 1184
2. A new Regional Office at Panchkula (Haryana) was established for accelerating development of branches in the States of Haryana, Himachal Pradesh, Punjab, Jammu & Kashmir and Union Territory of Chandigarh by bifurcating New Delhi Region. The New Delhi Region will now comprise of Delhi and Rajasthan States only.;
3. 50 more branches were awarded ISO 9001:2000 Certification during the year, taking the total tally of ISO Certified Branches to 337.
Technology
1. Dena Garima – Bank’s Core Banking initiative gained momentum with rolling out of 498 branches during the year 2008-2009, taking the tally to 606 branches covering 293 centers and 26 states / union territories.
2. All the branches of the Bank are computerized and 99.80% of Bank’s business is conducted through technology based solutions.
3. A total of 387 ATMs have been installed as on 31st March 2009 all over the country. Out of these ATMs, 284 are Onsite and 103 are Offsite covering more than 260 centers.
4. The Bank has launched Dena International Gold Debit Card to NHI customers with Visa affiliation.
5. The Bank is offering host of other techno enabled products viz. Mobile banking, Tele banking, Dena Billpay, e-payment of indirect Taxes and RTGS/ NEFT etc.
Human Resources Development
1. Recruitment process for 553 officers (including specialist officers) for the year 2008-09 was completed in the last week of December 08.
2. 1610 employees have undergone training during Oct-Dec’08 in various thrust areas like Credit, CBS, Retail, NPA, SME, HR etc. at both in-house through STCs/DIIT/Sir SPBTC and through outside training agencies (both in India & Abroad).
3. Bank ensures to provide training to all employees to update and sharpen their skills.
4. Bank has carried out written test for internal promotion of 800 clerks to Officers (JMGS-I) and promotion of 310 JMG Scale-I officers to MMG Scale-II officers.
5. Bank recognises the efforts of outstanding achievers and encourages by suitable awards. Recently, an excursion tour with family of all achievers was organized at Lonawala during the quarter.
AUGMENTING RESOURCES
The following new products are introduced during the period 1st April 2007 – 31st March 2008.
Dena Diamond Deposit Scheme:
With a view to remain competitive with other players in the market, the Bank had introduced “Dena Diamond Deposit Scheme” for a limited period with effect from 26th May 2007 with an objective to tap short and medium term deposits. The scheme offered the depositor an opportunity to earn higher interest for their investment for a fixed maturity period of 700 days. The scheme was offered upto 30th November 2007 only.
Dena Recurring Depositors Insurance Scheme
As per the tie-up arrangement with Life Insurance Corporation of India, Dena Recurring Depositors Insurance Scheme provides life insurance cover to Recurring Deposit account holder to the extent of the Maturity value of the Recurring Deposit, against risk of death during the tenure of Recurring Deposit, by paying a nominal annual Insurance premium. In all cases of unfortunate death of depositor during the period of RD, family / dependants of depositor will receive full maturity value of such Recurring Deposit.
Dena Tractor Borrowers’ Life Insurance Scheme
In tie-up arrangement with Life Insurance Corporation of India, Dena Tractor Borrowers’ Life Insurance Scheme is launched, which provides life insurance cover to Tractor loan borrowers to the extent of outstanding loan against risk of death during tenure of loan. In case of unfortunate death of Tractor Loan Borrower during currency of loan, LIC will settle the claim to liquidate outstanding loan amount. Thus family / dependents of the Tractor Loan Borrower are not burdened with repayment of outstanding loan. The insurance premium can be included in the project cost & financed by the Bank.
Garnering Fee Based IncomE
Special focus has been accorded to augmenting fee based income;
A separate marketing cell has been created at Corporate Office for selling of third party products viz. Bancassurance & Mutual Funds etc.;
The Bank entered into tie up arrangement with 3 more Mutual funds during the year in addition to existing 8, thus providing a bountiful basket of varied products from the leading mutual funds viz. UTI, ICICI Pru, LIC, Franklin Templeton, HDFC, Reliance, ING, Kotak Mutual, TATA AIG, Birla Sunlife, SBI Mutual Fund, for selling their products;
Bank has also tied up with LIC for selling Life Insurance Products and entered into a referral arrangement with Oriental Insurance for Non-life products. During the year two new products i.e. ‘Oriental Health Royal’ Medi-Claim Scheme & Personal Accident policy, were launched;
An innovative ‘Dena Grah Swami Suraksha Yojna’ was introduced by the Bank, in association with LIC to provide Loan linked Life Insurance Cover to a Housing Loan Borrower during the currency of a the Loan;
A separate cell has also been created at Corporate Office, for shoring up the Govt Business by providing hassle free service to the customers at delivery channels and quicker processing of information / remittances;
The Bank has extended the facility of franking of stamps, beyond Mumbai, at 11 more branches at New Delhi and in the state of Rajasthan;
Bank entered into a Rupee Drawing Arrangement with UAE Exchange for inward remittances of NRI funds during the year, with a view to enable new client acquisition and help garner NRI / Resident deposits. This adds to the bank’s existing similar arrangements with Western Union Money & Times of Money for foreign inward remittances.
Priority Lending
1. Collaborated with Gujarat Green Revolution Co Ltd for promoting lending under Micro Irrigation Scheme – Drip & Sprinkler Irrigation;
2. ‘Dena Swachha Gram Yojna’, a scheme to provide collateral free finance for construction of Toilets / Bathrooms in rural areas was launched by the Bank, with a view to provide clean and hygienic living conditions to the rural folk;
2.‘Dena Paryavaran Suraksha Yojna’, a scheme to finance auto rickshaw owners for acquiring / fitting CNG / LPG gas kit in old auto rickshaws, was launched as a measure to curb environmental air pollution. The Bank has so far financed 900 such auto rickshaw owners, thus contributing to a safer environment, in a subtle way;
3. Tie up with NBHC for financing to farmers and others against pledge of godown receipts.
4. MoU signed with M/S Zero Microfinance Saving Support Foundation as Service provider and with M/S A Little World As technology provider fo the financial inclusion in 2 districts of Gujrat covering 135 villages.
Corporate Social Responsibility
1. The Bank continues to sponsor One Girl Child at each of the villages in its command area of operation in the state of Gujarat, for pursuing secondary education under the scheme Dena Shiksha Protsahan Yojana, and 521 scholarship have been provided under the scheme so far;
2. The Bank has adopted 51 villages in the State of Gujarat for all round development;
3. Bank has sponsored 2 RUDSETIs at Mehsana & Bhuj in the state of Gujarat to provide training to rural youth and women enabling them acquire skills for self-employment. More than 2864 rural youth trained so far;
4. Pro-actively promoting the Innovators with need based & collateral free financing;
Road Map ahead
1. The Bank plans to open at least 22 new branches during the current year;
2. Another Industrial Finance Branch is slated to be opened at New Delhi;
3. 450 more Branches are planned to be rolled out under CBS during FY 2008-09;
4. To expand outreach and facilitate rural centres with a greater number of bio-metric ATMs;
5. Bank proposes to enter into a tie-up arrangement with Postal Department for engaging their services as Business facilitators for processing and recovery of loans;
6. To continue to offer innovative deposit schemes to augment low cost / retail deposits;
7. The Bank continues to lay focus on credit to productive sectors of the economy viz. SME, Manufacturing and Agriculture etc.;
8. To shore up new avenues of fee based income viz. Selling of Gold, tie ups with more mutual funds / exchange houses etc.;
9. Committed to reposition itself as a robust medium sized Bank with strong fundamentals.
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