“We are eyeing 25% growth in our home loan portfolio in 2011-12,” DL Rawal, chairman and managing director told moneycontrol.com.
He said the bank has tied up with 400 builders and is tracking CRISIL star ratings on real estate projects to tap builders. The bank will add another 600 builders in the current fiscal, Rawal said.
Customers who are trying to buy homes with those builders will have easy access to the bank’s credit.
Dena Bank is offering 10.5% rate of interest on floating basis to its home loan customers. Its current home loan book stands at Rs 5,400 crore.
Earlier Dena Bank had a special scheme on home loan that was discontinued in October last year.
Meanwhile, the bank has set up a 22 member committee to examine the avenues of boosting fee income. The committee will gauge the expectation of customers for various services to be offered.
“In a higher interest rate regime, it is important for a bank to increase its fee income. The committee will focus on distributing third party products, CASA (credit account-saving account) ratio improvement and credit syndications,” added Rawal.
When multiple banks fund a particular project together, it is called syndication. Dena Bank has just started a credit syndication cell at its head office. So far it has generated 3-4 proposals.
The bank’s current CASA forms 35% of total deposits and it aims to achieve 36-37% CASA in the current financial year. A high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts, which means it is getting funds at low cost Source www.moneycontrol.com...
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