Dena Bank inks pact with Star Agri

Dena Bank, public sector lender has partnered with Star Agri for funding warehousing infrastructure in Tier 2 and 3 cities. As per the deal Star Agri will offer collateral management services to the bank and warehousing facilities to end users pan India.

The bank will finance the warehouse receipts issued by the Star Agri to the extent of 70-75% of the value of receipt to benefit farmers, traders, processors, millers and other agri based businesses. It aims to Rs 500 crore of agri funding for the short term period ending December 2012 mainly targeting the kharif crop to be harvested in September-October followed by a more challenging target in the next crop-year.

The bank has posted a rise of 62.29% in its net profit at Rs 254.79 crore for the quarter ended March 31, 2012 as compared to Rs 157.00 crore for the same quarter in the previous year. Total income has increased by 36.40% at Rs 2166.36 crore for quarter under review as compared Rs 1588.26 crore for the quarter ended March 31, 2011.