Dena Bank to raise Rs 150 crore by preferential allotment of shares to LIC

Dena Bank, the public sector entity is likely to raise Rs 150 crore of capital to fuel its growth by selling 5% stake to Life Insurance Corporation (LIC) through a preferential allotment of shares. Through this stake sale, the government’s holding in the bank will go down to 53% and LIC’s stake in the bank will go up to 11% from 6%, at present.

Net profit of the bank for the third quarter ended-December 31, 2011 was up 20.28% to Rs 186.68 crore. The total income of the bank was up 27.75% to Rs 1810.21 per cent. Net interest margins were up 6 basis points at 3.30%. Gross credit of the bank was up by 15.70% to Rs 47,928.38 crore.