Dena Bank jumps on inking pact with Star Agri

Dena Bank is currently trading at Rs. 95.50, up by 0.55 points or 0.58% from its previous closing of Rs. 94.95 on the BSE.

The scrip opened at Rs. 94.95 and has touched a high and low of Rs. 95.95 and Rs. 93.25 respectively. So far 1, 88,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 104.00 on 27-Feb-2012 and a 52 week low of Rs. 47.50 on 02-Jan-2012.

Last one week high and low of the scrip stood at Rs. 101.70 and Rs. 92.00 respectively. The current market cap of the company is Rs. 3,343 crore.

The promoters holding in the company stood at 55.24% while Institutions and Non-Institutions held 23.16% and 21.60% respectively.

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.