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Kolkata: Public sector Dena Bank has asked for recapitalisation support from the government to the tune of Rs 900 crore in the next few years to improve its capital adequacy and support its lending growth.
Among this, the bank is expecting the government to pump in Rs 500 crore in 2009-10 and the balance Rs 400 crore in 2010-11.
On July 14, Dena Bank chairman and managing director DL Rawal said, “We have sought Rs 500 crore from the government for the fiscal. This includes Rs 300 crore by way of preference shares and Rs 200 crore as perpetual non-cumulative preference shares.”
The government holds 51.19% in the Mumbai-based bank’s paid-up equity of Rs 286.82 crore and has little room for diluting its parent’s stake to raise capital. The capital adequacy ratio of the bank stood at 12.07%.
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