Public sector lender Dena Bank is planning to raise Rs 366 crore through a preferential allotment of shares to Life Insurance Corporation of India (LIC) and General Insurance Corporation (GIC). As part of the capital raising programme, LIC will invest Rs 282 crore, while GIC will invest Rs 84 crore.
The bank has received its shareholders approval in an extraordinary general meeting which was held on March 22, 2014. The bank has approached LIC and GIC for capital infusion to meet the credit requirement of the productive sectors of economy as well as to maintain regulatory capital adequacy ratios.
Dena Bank was established in 1938 and was nationalized in July 1969. The bank has reported 67.16% fall in its net profit at Rs 67.80 crore for third quarter ended December 31, 2013 as compared to Rs 206.44 crore for the same quarter in the previous year. However, total income of the bank has increased by 10.56% at Rs 2662.80 crore for quarter under review as compared to Rs 2408.42 crore for the quarter ended December 31, 2012.
