Dena bank seeks Rs 2,000 cr capital infusion as tier-I capital falls below 8%

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Public sector lender Dena Bank has sought Rs 2,000 crore capital infusion from the Central government to support its future loan growth as the tier-I capital of the Bank fell below 8 per cent by the end of June quarter, as per the media report.

Chairman and Managing Director of Dena Bank, Ashwani Kumar said, "We have requested for Rs 2,000 crore capital infusion from the government to support future loan growth. We hope that it may come in two tranches."

Media report said that by the end of June quarter, the public sector lender's capital adequacy ratio stood at 11.12 per cent even as tier-I capital, which is critical to support loan growth, fell below 8 per cent to 7.28 per cent.

Kumar said during the first quarter, the bank had consciously not grown its loan book aggressively as its core capital (tier-I) came below 8 per cent.

Read more about: dena bank
Story first published: Monday, July 29, 2013, 9:23 [IST]
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