SUMMARY REPORT OF DENA BANK

PREPARED BY :Vikram Ghosh Sudeep Mendjoge PG-11-011 PG-11-028

Divya Padmanadhan PG-11-071 Ruchi Modi Sahil Shah PG-11-094 PG-11-108

Performance Highlights
Aggregate Business Mix (Deposits + Advances) of the Bank scaled a level of Rs. 1,34,326 Crore during the financial year ended 31st March, 2012. The total Business Mix of the Bank increased by Rs. 24,953.01 Crore to Rs.1,34,326.00 Crore at the end of the year 2011-12 from Rs.1,09,372.99 Crore as on 31st March, 2011, registering a growth of 22.81%. Total Deposit of the Bank increased by Rs.12,957.18 Crore from Rs.64,209.62 Crore as on 31st March, 2011 to Rs.77,166.80 Crore as on 31st March, 2012, registering a growth of 20.18%. Advances of the Bank increased by Rs. 11,996.43 Crore from Rs.45,163.37 Crore as on 31st March, 2011 to Rs. 57,159.20Crore as on 31st March, 2012, registering a growth of 26.56%. Micro, Small and Medium Enterprises (MSME) Credit posted a growth of Rs.1,507.41 Crore from Rs. 6,783.72 Crore as on 31st March, 2011 to Rs. 8291.13 Crore as on 31st March, 2012, registering a growth of 22.22%. Retail Credit posted a growth of Rs. 1,146.91 Crore from Rs.6,135.59 Crore as on 31st March, 2011 to Rs. 7,282.50 Crore as on 31st March,2012, registering a growth of 18.69%. Recovery efforts in NPA Accounts of the Bank yielded good results. Cash recovery during the year 2011-12 stood at Rs. 222.56 Crore and Up gradation to the tune of Rs. 191.47 Crore. The recovery in written off accounts during the year was Rs. 81.93 Crore including recovery of interest in written off accounts of Rs. 12.17 Crore.

Branch Network
During the year 2011-12, the Bank opened 51 new Branches and Branch network of the Bank increased to 1342. All the branches of the Bank are covered under CBS. The ATM Network of the Bank increased to 543, it includes 113 offsite ATMs. Bank`s customers have access to 90,000 ATMs in the shared network, 4.70 Lacs plus Merchant Establishments (MEs) in India. Worldwide, our customers have access to more than 1 million ATMs and 26 million MEs.

2011-2012 Highlights
The Credit-Deposit ratio of the bank improved from 68 per cent in March 2008 to 71.81 per cent in March 2012. Banks net interest income (NII) has increased by 19.15% and stood at ` 2101.00 Crore as compared to ` 1763.37 Crore posted during the previous year. Net Interest Margin stood at 3.17 % for 2011-12. The ratio of priority sector advances to Adjusted Net Bank Credit stood at 38.54% as of March, 2012 against the regulatory guidelines of 40%.

Agriculture credit increased from the level of 6389 Crore as of March, 2011 to 6989 Crore as of March 2012, registering a growth of 9.39 %. The outstanding exposure under agriculture credit represented 15.71% of the Adjusted Net Bank Credit.

Gross NPA stood at Rs. 572.60 Crore as on 31.3.2012 as against Rs. 620.77 Crore as on 31.3.2011 and in percentage terms, the Gross NPA ratio was 2.45 as on 31.3.2012 as against 2.13 as on 31.3.2011

Net NPA stood at Rs. 215.43 Crore as on 31.3.2012 as against Rs. 313.38 crore as on 31.3.2011. In percentage terms, the Net NPA ratio was 0.94 %as on 31.3.2012 as compared to 1.09 % as on 31.3.2011.

The Bank maintained a Provision Coverage Ratio of 60.70 % as on 31.3.2012.

The Tier I capital adequacy ratio of the Bank under Basel II is 8.86% as against 9.77% as of March, 2011. The table below gives details about CRAR as per Basel-I and Basel-II.

BASEL I March,11 March,12 CRAR Tier- I Capital CRAR Tier-II Capital Total 8.04 3.00 11.04 March,12 7.75 2.32 10.07 9.77 3.64 13.41

( In % terms ) BASEL II March,11 8.86 2.65 11.51

The Capital to Risk (Weighted) Asset Ratio (CRAR) stood at 11.51% as of March 2012, compared to 13.41% as of March 2011, against the requirement of 9%. However, the Core CRAR of the Bank under Basel II is 8.86 % as on 31st March, 2012 which indicates healthy level of Core Capital. The Tier I capital adequacy ratio of the Bank under Basel II is 8.86% as against 9.77% as of March, 2011.

The capital requirement is a function of the regulatory requirements, the risks arising from banks activities mainly due to economic and market conditions. Capital planning of the bank is to ensure the adequacy of capital at the times of changing economic conditions, even at times of economic recession. In this process, the Bank recognizes: Current capital requirement of the bank; and Capital requirements to sustain projected asset acquisition in near future. The Bank reviews its capital requirements and capital strategy based on medium range plans for 3 5 years and reviewed annually. On the basis of the annual review, the bank raises capital in Tier-1 or Tier-2 with the approval of Board of Directors of the Bank. The Capital Adequacy position of the bank is reviewed by the Board of the Bank on quarterly basis.

The Banks Risk Weighted Assets (RWA), Minimum Capital Requirement and Actual Capital Adequacy as on 31.03.2012 are as under: 1. Capital requirement for Credit risk Risk Weight Assets for Credit Risk Capital requirement for Market risk in respect of: Risk Weight Assets for Interest Rate Risk Risk Weight Assets for Foreign Exchange risk (including gold) Risk Weight Assets for Equity Risk Total Risk Weight Assets for Market Risk Risk Weight Assets for FFC Capital requirement for Operational Risk: Risk Weight Assets for Operational Risk under Basic indicator approach Capital requirement for others : Risk weight assets for Fixed Assets, Other Assets and Contingent items Total Capital & CRAR Minimum Capital Requirement for Credit, Market & Operational Risk Actual Position of Total Eligible capital Eligible Tier I Capital Eligible Tier II Capital CRAR Tier I Capital to RWA Tier II Capital to RWA ( in crore) 44009.29

2.

1607.22 50.00 222.33 1879.55 50.39

3.

2957.47

4.

1677.59

5.

4551.69 5821.92 4481.98 1339.94 11.51 % 8.86 % 2.65 %

(Amt in Crore) Particulars As of March, 2011 As of March, 2012 77,166.80 57,159.20 23,207.80 17,153.00 6,989.00 7,282.50 8,291.13 956.50 571.73 1.67 1.01 11.51

Deposits 64,209.62 Advances 45,163.37 Investments 18,860.22 Priority Sector 15,150.00 Agriculture 6,389.38 Retail 6,135.59 MSME 6,783.72 Gross NPA 842.24 Net NPA 548.95 % of Gross NPA to Gross Advance 1.86 % of Net NPA to Net Advance 1.22 Capital Adequacy Ratio % 13.41

Net Worth and CRAR

1. Net Worth of the Bank improved to Rs. 4,256.14 crore as on 31.03.2012 from Rs. 3,366.43 crore as on 31.03.2011, registering a growth of Rs.889.71 Crore (26.43%). 2. Capital to Risk (Weighted) Asset Ratio (CRAR) as of March, 2012 works out to 11.51% as compared to 13.41% as of March, 2011. 3. During the year, the Bank allotted 1.66 Crore Equity Shares of face value of Rs. 10/- at a price of Rs. 90.73 (including premium of 80.73) aggregating Rs. 151.24 Crore to Life Insurance Corporation of India on preferential basis. With the above allotment, Government of India holding in the Bank stands reduced to 55.24% from 58.01%.