Project Report on

DENA BANK Submitted in partial fulfillment of requirement for the degree of Post Graduate (Master Of Commerce) University of Mumbai Submitted by

SHAIKH RABIYA
MCOM PART 1, ROLL NO -04, DIV A Under the guidance of : PROF. ASHFAQUE AHMED

Burhani College of Commerce & Arts NESBIT ROAD, MAZGAON, MUMBAI - 10 Academic year 2013-2014

CERTIFICATE

This is to certify that SHAIKH RABIYA of M.Com. Accountancy Semester 1ST [2013 2014] has successfully completed the project on Dena Bank under the guidance of PROF. ASHFAQUE AHMED

Project Guide Course Coordinator Internal Examiner External Examiner Principal

_____________________ _____________________ _____________________ _____________________ _____________________

Date: _______ Place: Mumbai

DECLARATION

I SHAIKH RABIYA NIYAZ AHMED the student of M.Com-I (ACCOUNTANCY) 1ST Semester (2013 -2014) , hereby declare that I have completed the project on

DENA BANK

This information submitted is true and original to the best of my knowledge.

SHAIKH RABIYA (Signature)

ACKNOWLEDGEMENT

I owe my thanks to a great many people who helped and supported me during the project. My deepest thanks to PROF. ASHFAQUE AHMED the guide of the project for guiding and correcting various documents of mine with attention and care.

TABLE OF CONTENTS Sr No 1 2 3 4 5 6 7 8 9 10 Chapters Introduction Objectives History Strategy/Goals Services Balance Sheet Profit & Loss A/c Board Of Dirctors Conclusion Bibliography Page No

INTRODUCTION
Dena Bank is one of the earliest banks in India, headquartered in Mumbai.[3]Dena Bank was founded on 26 May 1938, by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd. It is one of the nationalised banks of India. It became a Public Limited Company in December 1939 and later the name was changed to Dena Bank Ltd. It has a network of over 1400 branches.

The Bank had 1122 branches as at 31st March 2006 (1122 as at 30th June 2006)including 98 satellite offices spread over 21 states and 3 Union Territories. Of these, 518 branches were located in Gujarat, 249 in Maharashtra and 74 in Chhattisgarh. The Bank had presence in almost all major cities / towns elsewhere. Of the 1122 branches, 491 (including 98 s atellite offices) were located in rural areas, 191 in semi-urban, 236 in urban and 204 in Metro areas. The Bank does not have any branch outside the country. The Bank has 37 authorized dealer branches to undertake forex related business. The Bank has also set up 5 Asset Recovery Branches to focus on recovery efforts in large NPA accounts. The Bank has set up over 50 FINMARTS for marketing of its retail products and services. The Bank has a large bouquet of products and services to offer its customers. Apart from traditional asset & liability products and ancillary services like Safe Deposit Vaults, the Bank also has a number of Retail Banking schemes for housing loans, consumer durables, educational loans, mortgage loans etc. The Bank also offers its services in the form of Credit cards, ATM cum Debit cards, Kisan Credit Cards, Dena Laghu Udyami Credit Card, Dena General Credit Card etc. The Bank also had a special deposit scheme Dena Alpa Bachat Katha aimed at financial inclusion. The Bank has been active in corporate credit, agricultural credit, SME & SSI loans, retail credit and export credit. The loan book of the bank is well diversified covering a wide of sectors / industries of the economy.

OBJECTIVES
The main objective of a commercial bank is to generate profitability for its ownership by providing quality based products and services to the residents of the communities and regions that they represent. Aside from offering traditional banking products, commercial banks must be highly competitive and provide specialized products. For example, some commercial banks participate in the innovative CDARS (Certificate of Deposit Account Registry Service) program that allows customers to deposit up to $5 million in FDIC insured time deposits

An important objective for a commercial bank is to increase the level of new customers and to retain those customers that already exist. In this regard, the quality and type of banking services offered are crucial, especially since services are provided in exchange for fee income, which is a great contributing factor to the profitability of a bank. Commercial banks must be able to either provide in-house or outsourced services for all types of banking products such as check collection, electronic payments, foreign exchange conversions, letters of credit, investment advisory services and trust accounts. Since some of these services may have to be outsourced to larger banks, a seamless type of environment must exist between the commercial bank and the contractor.

Community Involvement

Commercial banks are tied to the communities they serve and must be heavily involved in local associations and organizations. Furthermore, banking legislation requires that each bank must provide loans through the "Community Reinvestment Act" (CRA) program. These CRA programs usually represent loans made to low income housing projects, hospitals and schools for the needy.

Regulation All commercial banks must have the objective of complying with banking regulations, rules and laws. Many different types of regulations exist in order to protect consumers, depositors and loan customers. For example, Regulation CC stipulates the time frame for the availability of funds deposited and the collection of checks while Regulation Z includes laws regarding truth in lending. The regulatory authorities conduct annual examinations of banks

Function

Commercial banks attempt to function as the financial institution of choice for all levels of the community. Therefore, they concentrate on those products and services that are most in demand. For example, if a commercial bank is located in a farming region, the products offered range from small business and consumer loans to the financing of farm equipment and distribution centers. In addition, commercial banks must offer full service banking that includes deposit taking ,
mortgage lending, check clearing and all other fee for service activities.

Significance

Commercial banks possess special local features that separate them from other types of financial institutions. Commercial banks are different from other types of banks due to their close knit community relationship and the specialized local products that they offer to their customer base. They are not able to effectively compete with large money center banks or multinational banks that engage in money dealing activities such as buying and selling overnight federal funds, hedging of foreign exchange contracts or trading in securities.

HISTORY
Dena Bank was founded by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd. It found its new name, Dena Bank Ltd. (Devkaran Nanjee) when it was incorporated as a Public Company in December 1939. The bank was nationalised (and therefore dropped Limited from its name) in 1969 along with 13 other banks in India. Dena Bank features:

Minor savings scheme. Credit card in rural India known as "Dena Krishi Sakh Patra" Drive-in ATM counter at Juhu, Mumbai. Smart card at selected branches in Mumbai. Customer rating system for rating the bank's services.

The bank's head office is in Mumbai, with a network of 1291 branches (as at March 2011) across the country. The bank has a network of 496 ATMs across India, of which 105 ATMs are off site(as at March 2011). Dena Bank introduced core banking on March 2007 at its Mahim branch in Mumbai. 850 branches out of the 1122 branches including extension counters of the bank are scheduled for coverage. Milestones

One among six public sector banks selected by the World Bank for sanctioning a loan of Rs.723 million for augmentation of Tier-II Capital under Financial Sector Developmental project in 1995. One among the few banks to receive the World Bank loan for technological upgradation and training. Launched a bond issue of Rs.921.3 million in November 1996. Maiden public issue of Rs.1.80 billion in November 1996. Introduced telebanking facility at metropolitan centres

Key Attributes Dena Bank was one of the six Public Sector Banks which had been chosen by the World Bank in the year 1995 for granting a loan of Rs. 72.3 Crores under Financial Sector Development project. Also, it is one of the few banks which have been given a loan by the World Bank for technological advancement and training. Dena Bank has maintained a strong technological infrastructure with state-of-the-art IT innovations and solutions implemented at its branches and back-end. 100% branches of the bank have been fully computerized, and the bank has established its own network called DENANET to ensure seamless connectivity and smooth workflow all the way through its banking process. DENANET is comprised of VSATs, leased lines, dial-up lines and ISDN backups, and is completely integrated with the Indian Financial Network (INFINET) of the Reserve Bank of India (RBI). Regular Banking Services Dena Bank offers a host of Regular Banking Services to its customers, including Personal Baking Services comprising of Deposit, Loan and Investment Services, Priority and Small & Medium Enterprises (SME) services, International Baking Services, Corporate Banking Services and a host of other Value Added Services. Network Based Services Leveraging the potential of its own advanced high-speed Information Network DENANET, Dena Bank offers a host of network based services to its customers in addition to the Regular Banking Services. These services include Data Transfer, Remote Support, Real Time Gross Settlement (RTGS), Dena BillPay, Dena m-banking, Any Branch Banking, Multi-City Cheque Facility, Internet Banking and Dena e-Tax Pay.

STRATEGIES/GOALS
Scope of Work:

Diagnostic Study & Gap Analysis: To conduct a Diagnostic Study and Gap Analysis followed by formulating and implementing Credit, Market & Operational Risk Management Frameworks and also a Framework for enterprise wide integrated risk management to comply with Basel II norms & RBI Guidelines and benchmarked against the international best practices and achieving the following objectives: Review of Policies, Processes and Organization Structure pertaining to credit, market & operational risk management;
Credit Risk Management:

Review of Policies, processes and Organization Structure pertaining to Credit Risk Management; Adopting Simplified Standardized Approach for Credit Risk Capital computation by March 2008 and suggesting ways of optimizing capital requirements;
Market Risk Management:

Framework for Cost to Close Analysis for efficient Funds / Liquidity Management;

 Framework for introduction of VaR analysis, Back-testing etc to cover State Government Securities, non-SLR portfolio including Equities & Forex Exposures and integration VaR as part of decision making process in Treasury;
Operational Risk Management:

Framework for Improvements in Identification of core areas of operational risk origination, Assessing, Controlling, Monitoring and Mitigation of Operational Risk; Identification of core areas of risk origination from an operational risk perspective;
Eligibility Criteria:

The eligibility criteria for the consultants to participate in the bid process are as follows: The Consultant should have experience in developing & implementing credit, market, operational risk management frameworks and Integrated Risk Management system in at least one Bank in India [Private/Public] of comparable size (i.e. with a branch net work of around 1000 branches and a business-mix of at least Rs 40,000 crore) or at least in 2-3 international financial institutions / Banks, preferably abroad.

SERVICES
ATM CARDS Dena Bank Debit cum ATM Card offers you an easy and convenient way to do all your transactions and that too within a fraction of seconds.

Presently DENA BANK have more than 770* ATMs all across India and out of these ATMs, 23 ATMs with biometric based identification features have been installed including 21 ATMs in four tribal blocks in the state of Gujarat initiated by Development Support Agency of Gujarat Government (D-SAG). *as of 30.09.2013

Dena Bank offers the following types of cards: 1.Dena ATM Card 2.Dena Insta Card (Un-named Debit Card) 3.Dena Debit cum ATM Card (Named Debit Card) 4.Dena International Gold Debit Card 5. Dena RuPay KCC Debit cum ATM card for DKCC holder

MOBILE BANKING
Dena Bank's offers Dena MConnect the convenient and secure way to conduct banking transaction in your account using your mobile handset. You can access facilities like account information, fund transfer. The customer can also avail the post registration services like reset MPIN, change of mobile number.

GO RECHARGE
Recharge Mobile, DTH and Data Card with Dena Visa Debit Card

CREDIT CARDS Dena International Travel Card Dena Bank has launched yet another new product - Dena Travel Card - this is a perfect travel companion which is available in three major currencies viz. US Dollars, Sterling Pounds and Euro. Dena Travel Card is a VISA prepaid Reloadable card which lets you carry foreign currency conveniently, and in a secure manner. This prepaid card can be loaded with foreign currency in India and can be used for making payments directly at over 14 million merchants as well as for withdrawing local currency at over 1 million VISA ATMs worldwide. Since, meant only for foreign travels, this Card cannot be used in India, Nepal and Bhutan. The initial load amount should be minimum USD 250, Euro 200 and Pounds 150. The Maximum Amount & usage charges will be as per RBI/FEMA & various sharing network guidelines, applicable from time to time.

Presently the card is available from branches authorised for dealing in Foreign Exchange. Gift Card Dena Bank has launched yet another new product - Dena Gift Card this is a perfect alternative to the usual forms of gifting articles or cash thereby giving choice in the hands of the person to whom it is given.. Dena Gift Card is a VISA prepaid Non-Reloadable card which can be obtained at the designated branches across the counter just like Insta Debit Cards and can be used for purchases. DENA BANK Gift Card is Valid for use only in India , at all VISA Merchant locations

BALANCE SHEET
------------------- in Rs. Cr. ------------------Balance Sheet of Dena Bank Mar '13 12 mths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 350.06 350.06 0.00 0.00 5,413.95 0.00 5,764.01 97,207.15 8,413.66 105,620.81 2,055.61 113,440.43 350.06 350.06 0.00 0.00 3,941.45 185.82 4,477.33 77,166.80 3,880.95 81,047.75 1,862.84 87,387.92 333.39 333.39 0.00 0.00 3,125.79 196.74 3,655.92 64,209.62 1,691.66 65,901.28 1,281.22 70,838.42 286.82 286.82 0.00 0.00 2,106.23 208.64 2,601.69 51,344.28 1,561.92 52,906.20 2,078.70 57,586.59 Mar '12 12 mths Mar '11 12 mths Mar '10 12 mths

Mar '13 12 mths Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 8,644.49 1,176.92 65,781.22 34,343.10 1,112.12 0.00 1,112.12 0.00 2,382.58 113,440.43 47,689.51 9,124.64 164.66

Mar '12 12 mths

Mar '11 12 mths

Mar '10 12 mths

5,194.96 356.24 56,692.54 23,027.65 924.45 519.29 405.16 1.48 1,709.90 87,387.93 36,367.62 9,118.38 122.59

4,721.41 687.40 44,828.05 18,768.91 888.00 484.40 403.60 0.15 1,428.91 70,838.43 12,523.97 6,271.84 103.76

4,355.03 759.49 35,462.44 15,694.23 828.95 421.89 407.06 0.22 908.11 57,586.58 11,330.45 22,326.00 83.43

Source : Dion Global Solutions Limited

PROFIT AND LOSS A/C

Standalone Profit & Loss account

------------------- in Rs. Cr. ------------------Mar '13 Mar '12 Mar '11 12 mths Mar '10 12 mths Mar '09 12 mths

12 mths 12 mths Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses

8,899.39 6,794.13 5,033.53 4,010.36 3,447.50 655.46 582.17 533.84 588.63 430.13 9,554.85 7,376.30 5,567.37 4,598.99 3,877.63 6,516.29 4,693.13 3,270.16 2,910.33 2,383.07 791.83 0.00 41.28 1,395.07 0.00 928.48 Mar '13 714.68 482.23 35.60 647.53 0.00 463.16 Mar '12 688.20 477.51 30.55 489.31 0.00 330.91 Mar '11 12 mths 611.63 0.00 0.00 611.63 0.00 85.53 0.00 511.59 270.55 27.61 367.66 0.00 944.80 232.61 Mar '10 12 mths 511.25 0.00 0.00 511.25 0.00 67.11 0.00 467.89 359.11 26.84 218.05 0.00 967.63 104.26 Mar '09 12 mths 422.66 0.00 0.00 422.66 0.00 40.27 0.00

1,299.70 1,416.88 1,354.66

8,744.47 6,573.17 4,955.73 4,087.74 3,454.96

12 mths 12 mths Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) 810.38 0.00 0.00 810.38 0.00 192.49 0.00 803.14 0.00 0.00 803.14 0.00 122.05 0.00

Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total

23.15 47.00 164.66

22.94 30.00 122.59

18.35 22.00 103.76

17.82 20.00 83.43

14.74 12.00 67.95

617.89 0.00 192.49 0.00 810.38

292.53 388.56 122.05 0.00 803.14

207.77 318.33 85.53 0.00 611.63

184.78 259.36 67.11 0.00 511.25

172.92 209.47 40.27 0.00 422.66

BOARD OF DIRECTORS

Shri Ashwani KumarShri Chairman & Mg. Director

Shri A. K. Dutt Executive Director

Smt. Trishna Guha Executive Director

Shri V. Vasanthan RBI Nominee Director

Shri Rajat Sachar Govt Nominee Director

Shri S P Sharma Workmen Employee Director

Shri Mohan Lal Gupta Officer Employee Director

Shri J Shri Vijay Kapoor Shri Rakesh Goel Balasubramanian Director Director Director

Shri Rohit M Desai Shareholder Director

Shri Mukesh Mohan Shareholder Director

CONCLUSION
So we can conclude that the banking sector play very important role in the economic development of the country its having special significance after new economic policy 1991 which was the turning point our economy and bring a revolutionary changes to industrialization process of our country. Banking sector was top most priority even after global financial crisis 2008 in which all the nationalize bank including DENA BANK PLAY a pivotal role for our national development which is the top most priority currently in front of the governments.

BIBLIOGRAPHY

WEBSITES
WWW.GOOGLE.COM WWW.SCRIBD.COM WWW.MANAGEMENTPARADISE.COM WWW.WIKIPEDIA.COM