State-owned Dena Bank has lowered its loan growth target to 15-16 per cent from the earlier estimate of 18 per cent due to slow economic growth.

“When we started the year (2013-14 fiscal), we had set credit growth target of 18 per cent. But, as the year progressed we had to revise it down to 15-16 per cent because of lower than expected pick up in credit,” Dena Bank Executive Director Ashok Dutt told PTI.

The demand from the corporates have been slow, he said, adding that the bank is expecting demand pick-up from retail, agriculture, exports.

Besides, the bank is giving thrust on credit to MSME sector, Mr. Dutt said.

In 2012-13, it had witnessed 16.27 per cent growth in credit to Rs 66,456.88 crore, as against Rs 57,159.20 crore outstanding at the end of March 2012.

Dena Bank is planning to raise Rs. 600 crore through qualified institutional placement (QIP) after it receives capital infusion from the government.

“Government’s share in our bank is 55.25 per cent and maintaining the government share at the same level, we will raise QIPs which should be around Rs 600 crore, depending on the price we get,” Mr. Dutt said.

The bank’s capital adequacy ratio is at 10.21 per cent.

For the second quarter ended September, 2013-14, the bank reported 55.19 per cent decline in net profit at Rs. 107.38 crore, on account of higher provisions.

The bank’s profit stood at Rs. 239.64 crore in the July-September quarter of the previous fiscal, 2012-13.

The bank’s provisions increased to Rs. 266 crore during Q2, 2013-4.

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