NEW DELHI: Reeling under the weight of non-performing assets, Dena Bank is set to receive a Rs 4,100 crore infusion from the government ahead of its merger with Bank of Baroda and Vijaya Bank.
“While the process of the merger is on, the government is ensuring that the financial health of the merger remains sound. We are considering the infusion of capital to the tune of Rs 4,100 crore in Dena Bank, which will help clean its loan book along with other measures (it) is already taking,” a senior government official told TNIE.
As on June 30, the gross NPA ratio of Dena Bank stood at 22.69 per cent and net NPA ratio at 11.04 per cent. The bank had reported a loss of Rs 721.71 crore on a total income of Rs 2,410 crore during the first quarter of this fiscal. The Bank has been put under prompt corrective action by the RBI.
This capital infusion has been on the agenda of the government for a while. In July, the Centre had infused Rs 2,820 crore into Punjab National Bank, Rs 2,550 crore into Corporation Bank, Rs 2,160 crore into Indian Overseas Bank, Rs 2,020 crore into Andhra Bank and Rs 1,800 crore into Allahabad Bank.