2. PROFILE
70 Yrs of banking - Founded on 26th May, 1938 as “Devkaran Nanjee Banking Company Ltd.”;
Rechristened as ‘The Dena Bank Ltd’ in Dec’66;
Nationalized on 19th July, rechristened as Dena Bank;
Professional Board of Directors— consisting of Banking Professionals, Eminent academicians, Qualified Chartered Accountants, etc. including shareholder Directors;
Two whole time Directors : Chairman & Managing Director & Executive Director;
Well diversified stable customer base (8 Million) supported by wide branch network;
Mid size Bank with Branch concentration in Industrially developed & vibrant Western India – Financial Hub of the country;
Initial Public Offer in 1996; Follow on Issue in 2005;
Govt of India Stake at %

3. FORERUNNERS IN Savings Deposit Scheme for MINORS;
KRISHI SAKH PATRA (Credit Card) for Farmers in rural India in 1989;
First FULLY COMPUTERISED BRANCH in PSU Banks (1991) : Nepean Sea Road, Mumbai;
First DRIVE-IN-ATM in Banking Industry in India (1996) : Juhu Vile- Parle, Mumbai (Bombay);
Specialized Training Institute for Computer Literacy : Dena Institute of Information Technology (DIIT), Mumbai (1997);
Customer Service Rating of Branches.

4. Snap Shot as at 31st March ‘08
† Amount in Rs. Crore

5. KEY INDICATORS [Rs. Crore] F.Y. 2005-06 F.Y. Growth [%] Quarter
Mar’07
Mar’08
Total income
25.66
684.24
882.98
29.05
Total expenses
31.63
499.97
664.05
32.82
Operating Profit
600.37
635.37
686.44
8.04
184.27
218.93
18.81
Operating profit without profit on sale of NPAs
475.04
565.71
21.34
181.04
20.93
Provisions
527.38
433.81
326.65
[24.70]
140.47
107.94
[23.16]
Net Profit
72.99
201.56
359.79
78.50
43.80
110.99
153.40
NIM - %
2.95
3.00
2.75
3.27
2.85
EPS [Rs.]
[non annualized]
2.54
7.03
12.54
1.53
3.87
Return on Assets [Annualized] - %
0.29
0.71
1.06
0.58
1.21

6. KEY INDICATORS [Rs. Crore] 31.03.06 31.03.07 31.03.08
Aggregate Deposits
Inter Bank Deposits
Total Deposits
Gross Advances
Investments
Gross NPA Ratio [%]
6.44
3.98
2.45
Net NPA Ratio [%]
3.04
1.99
0.94
CRAR [%]
10.62
11.52
11.09

7. NET INTEREST INCOME [Rs. Crore] F.Y. Growth [%] Quarter 2005-06
Mar’07
Mar’08
Interest Income
27.92
584.49
739.24
26.48
Advances
984.85
40.35
396.73
545.22
37.43
Investment
714.09
665.09
726.05
9.17
170.50
185.67
8.90
Inter Bank
36.87
39.88
19.92
[50.05]
17.14
2.34
[86.35]
Others
24.32
21.75†
10.71†
[50.76]
0.11
6.01
Interest Expense
43.86
351.57
500.99
42.50
Deposits
973.37
44.42
328.73
471.35
43.39
64.08
73.49
99.03
34.75
22.84
29.64
29.77
Net Interest income [NII]
722.68
855.36
892.91
4.39
232.91
238.25
2.29
† includes interest on income-tax refund of Rs crore for the year & Rs for the year

8. NON INTEREST INCOME [Rs. Crore] F.Y. Growth [%] Quarter 2005-06
Mar 07
Mar 08
Commission
87.44
125.20†
120.94
[3.40]
31.16
34.69
11.33
of which from
3rd party products
4.82
5.52
9.36
69.57
1.69
3.42
102.37
Govt. Business
4.79
6.00
6.88
14.67
2.35
1.94
[17.45]
Locker rent
7.17
8.48
8.58
1.18
2.20
6.82
Profit from Securities
125.33
39.45
90.02
128.19
3.23
162.54
Profit from sale of Properties
56.32
0.00
29.95
30.24
Forex Exchange
25.26
30.76
42.03
36.64
11.76
7.48
[36.39]
Process fee
22.59
28.37
30.10
6.10
10.08
11.24
11.51
Amortization of premium on investments [HTM]
[19.96]
[30.72]
[34.15]
11.16
[8.63]
[9.00]
4.29
Incidental charges
7.70
10.58
11.38
7.56
4.09
3.69
[9.78]
Supervision charges
4.42
5.42
7.04
29.89
1.98
2.18
10.10
Recovery in written off advances
77.38
155.60††
114.29
[26.55]
37.02
43.23
16.77
Other Misc.
52.55
26.86
32.37
20.51
6.86
67.78
Total non interest income
439.03
391.53
443.97
13.39
99.75
143.74
44.10
† includes commission income of Rs crore due to change in accounting policy
†† includes Rs crore recoveries on account of sale of NPA assets.

9. OPERATING EXPENSES [Rs. Crore] F.Y. Growth [%] Quarter 2005-06 2006-07
Mar 07
Mar 08
Staff Expenses
354.25
384.08
370.85
[3.44]
86.12
85.77
[0.41]
Insurance
24.98
28.65
33.75
17.80
7.51
8.53
13.58
Postage/Telephone
9.45
15.93
9.31
[41.56]
8.61
2.23
[74.10]
Printing/Stationery
8.45
9.52
10.34
2.30
2.61
13.48
Depreciation
32.41
31.78
29.45
[7.33]
5.92
8.26
39.53
Lighting
15.50
16.57
19.38
16.96
3.80
4.08
7.37
Rent & Taxes
30.06
32.00
36.95
15.47
7.13
10.45
46.56
Advertising
12.77
11.05
9.47
[14.30]
3.76
4.39
16.76
Auditors Fees
5.37
5.21
7.64
46.64
1.63
2.33
42.94
Repairs/Maintenance
17.30
17.96
19.13
6.51
4.68
4.71
0.64
Core Banking Solution
0.00
35.65
8.65
Other Expenses
50.81
58.76
68.51
16.59
16.94
21.05
24.26
Total Expenses
561.35
611.51
650.44
6.37
148.40
163.06
9.88

10. PROVISION & CONTINGENCIES
[Rs. Crore]
F.Y.
Quarter
Mar 06
Mar 07
Mar 08
Non Performing Loans
236.92
287.89
264.00
112.13
127.12
Tax expense
[21.46]
31.46
[42.17]
[8.25]
[128.34]
Investment Depreciation
270.69
83.02
27.58
23.32
30.15
Standard Assets
42.92
32.86
78.18
13.18
78.16
Other provisions
[1.70]
[1.42]
[0.94]
0.09
0.85
Total Provisions
527.37
433.81
326.65
140.47
107.94

11. RESOURCES [Rs. Crore] 31.03.06 31.03.07 31.03.08 % growth
Current Deposits
[6.17]
Savings Deposits
13.22
Term Deposits
33.19
Aggregate Deposits
21.60
CASA [%]
43.65
44.51
41.13
Inter Bank Deposits
44.50
TOTAL DEPOSITS
22.58
Borrowing
0.99
450.94
394.61
[12.49]

12. RESOURCES

13. DEPLOYMENT [Rs. Crore] 31.03.06 31.03.07 31.03.08 Growth over Mar 07
Gross Advances
14748
18683
23381
25.15
Priority Sec. Advance
6074
6662
8096
21.53
Agriculture
2363
2200
2794
27.00
Others
3711
4462
5302
18.83
PS credit to NBC [%]
42.20
45.17
43.32
Retail Credit
2249
3423
4297
25.53
S.M.E
2388
3158
3885
23.02
CD Ratio [%]
62.43
67.47
68.88
Gross investment
8635
9325
10335
10.83

14. DEPLOYMENT [Rs. Crore] Mar 06 Mar 07 Mar 08 Growth [%] [y on y]
Net Advances
14231
18303
23024
25.79
Net Investments
8571
9235
10283
11.35

15. INVESTMENT [Rs. Crore] 31.03.07 31.03.08 Held to Maturity 7463.15
[80.04%]
[83.43%]
Available for Sale
[19.93%]
[15.60%]
Held for Trading
2.82
[0.03%]
100.72
[0.97%]
Total
[Rs. Crore]
Govt Securities
Other Approved Securities
163.53
119.78
Shares / Equity
145.20
227.73
Debentures / Bonds
909.16
899.75
Subsidiaries / Jt. Ventures
21.72
Others
438.16
590.47
Total
[Rs. Crore]
SLR
[82.20%]
[83.17%]
Non-SLR
[17.80%]
[16.83%]
Total

16. CAPITAL ADEQUACY [Rs. Crore] 31.03.06 31.03.07 31.03.08 Tier I capital
848.23
Tier II capital
662.97
979.37
986.38
Total capital funds
Total RWAs
Core CRAR – Tier I
5.96
6.06
6.75
CRAR on Tier II
4.66
5.46
4.34
CRAR [Total]
10.62
11.52
11.09
Net Worth

17. ASSET QUALITY [Rs. Crore] 31.03.06 31.03.07 31.03.08 Gross NPA 949.40
744.48
572.60
Net NPA
432.85
364.80
215.43
Gross NPA Ratio [%]
6.44
3.98
2.45
Net NPA Ratio [%]
3.04
1.99
0.94
NPA Provision
499.46
372.58
347.62
Provision coverage
52.61
50.04
60.71

18. ASSET QUALITY Gross NPA brought down to below 2.5% (i.e. 2.45%)
Net NPA brought down to below 1% (i.e. 0.94%);
NPA Provision Coverage Ratio increased from 50.05% to 60.71%;
Aggressive efforts on Recovery in NPAs & Written off A/cs through action under SARFAESI & One Time Settlements;

19. ASSET QUALITY [Rs. Crore] Mar 06 [FY] Mar 07 Mar 08 Variation [%]
Gross NPA
Opening Balance
949.40
744.48
Less:
Cash recoveries
227.07
247.29
184.86
[25.25]
Upgradations
31.41
76.61
114.07
48.90
Write off
273.63
414.78
288.96
[30.33]
Total Reductions
532.11
738.68
587.89
[20.41]
Add:
Slippage & Debit Operations
333.97
533.76
416.01
[22.06]
Closing Balance
572.60

20. FINANCIAL RATIOS [cost/yield]
[Financial Year]
[Quarter]
Mar’06
Mar’07
Mar’08
Cost of Deposits [%]
4.58
4.89
5.90
5.09
6.08
Cost of Funds [%]
4.66
5.19
5.95
5.45
6.13
Yield on Advances [%]
7.80
8.66
10.11
9.13
10.08
Yield on Investments with POSOI [%]
9.19
7.74
7.39
7.58
Yield on Investments without POSOI [%]
7.82
7.52
6.88
7.26
Yield on Funds [%]
7.46
7.84
8.22
8.08
8.35

21. FINANCIAL RATIOS [F. Y] [Q] Mar’06 Mar’07 Mar’08
Int. Income as %age to avg. working funds
7.03
7.47
7.97
7.72
8.04
Non Int. Income as %age to avg working funds
1.89
1.38
1.31
1.32
1.56
Int. spread as %age to avg working funds (NII/Avg. Gross Assets)
2.88
3.02
2.63
3.07
2.59
Operating Profit as %age to avg working funds
2.48
2.24
2.02
2.43
2.38
Net Interest Margin [%]
[NII / Income generating assets]
2.95
3.00
2.75
3.27
2.85

22. FINANCIAL RATIOS [F. Y] [Q] Mar’06 Mar’07 Mar’08 Mar07 Mar08
Earning Per Share Rs.
[non-annualized]
2.54
7.03
12.54
1.53
3.87
Cost Income Ratio [%]
47.50
49.04
48.65
44.61
42.69
Return on Assets [%]
[annualized]
0.29
0.71
1.06
0.58
1.21
Return on Networth [%]
9.02
21.21
40.20
16.68
34.81
Profit Per Branch
[in Rs. Lacs] [annualized]
7.13
19.46
33.91
4.23
41.84
Profit Per Employee
0.72
1.99
3.61
0.43
4.46

23. FINANCIAL RATIOS [F. Y] 31.03.06 31.03.07 31.03.08 Coverage Ratio [%]
1.56
2.26
3.41
Book Value Rs.
[including Revaluation Reserve]
39.11
46.85
57.35
[excluding Revaluation Reserve]
29.57
37.89
49.18
Business Per Branch [in Rs. Crore]
37.51
44.76
52.42
Business per Employee [in Rs. Crore]
3.78
4.58
5.59

24. New Products
ATMs – 316 ATMs installed with additional access to over 20,000 ATMs through various tie-up arrangements for benefit of the Bank’s ATM cardholders.
Dena International Gold debit Card to HNI customer with VISA affiliation;
“Dena I Connect” – the internet banking services for customer of its CBS Branches, to access their account information through internet in the form of a) Balance inquiry, b) Mini Statement (last 10 transactions), c) Detailed Statement of accounts, d) Cheque book inquiry, e) Cheque Stop request, f) Direct Tax e payment, g) Fund Transfer (self), h) Outward cheque inquiry etc.

25. New Products Dena Recurring Depositors Insurance Scheme
Tie-up arrangement with Life Insurance Corporation of India.
Life insurance cover to Recurring Deposit account holder to the extent of the Maturity value of the Recurring Deposit, against risk of death during the tenure of Recurring Deposit, by paying a nominal annual Insurance premium.
Full maturity value of Recurring Deposit in all cases of unfortunate death of depositor during the period of RD to family / dependants of depositor.
Dena Tractor Borrowers’ Life Insurance Scheme
Life insurance cover to Tractor loan borrowers to the extent of outstanding loan against risk of death during tenure of loan.
In case of unfortunate death of Tractor Loan Borrower during currency of loan, LIC will settle the claim to liquidate outstanding loan amount.

26. NEW INITIATIVES AND THRUST
Expanding Outreach
25 new Branches were opened during the year including the first foot print in the state of Himachal Pradesh, thus increasing the total number of branches from 1135 to 1160;
62 more branches were awarded ISO Certification during the year, taking the total tally of ISO Certified Branches to 287;

27. NEW INITIATIVES AND THRUST
Technology
The Bank rolled out 93 branches during the year , taking the total CBS branches to108 covering 50 centers and 22 states. With this, 55% of Bank’s business is covered under CBS.
Bank has set up its own network “DENANET” using 651 leased lines, 253 ISDN lines, 26 V-SATs and 598 Dial up lines connecting 1068 branches and 36 administrative offices spread over 300 centers;
47 New ATMs were installed during the year , taking the total tally to 316 ATMs across 142 centers, of which 49 were at off-site locations;
As a part of financial inclusion, the ATM facility is extended to illiterate customer by installing 2 Bio-metrics ATMs, which can be operated by thumb impression of customers.

28. NEW INITIATIVES AND THRUST
Technology
The Bank has ATM sharing arrangement with SBI, Corporation Bank, through CASHTREE, VISA, CASHNET & NFS tie ups, enabling more than ATM access points & more than 3.50 lacs Merchant Establishments (MEs) in India and more than 1 million ATMs & 24 million MEs abroad, to bank’s customers; International Debit / ATM Card base stood at aprox. 6 lacs;
The Bank has number of value added services through the ATMs i.e. Mobile Pre-paid Top-Ups & Post paid bill payment etc. Debit card customer can also pay through internet;
The bank is offering host of other techno enable products i.e. Mobile Banking, Tele banking, Dena Bill Pay, E- payment of indirect taxes and RTGS / NEFT etc;

29. NEW INITIATIVES AND THRUST
Human Resources Development
Major initiative taken on building Leadership Skills across cadres;
Engaged the services of a consultant of repute to advise on the strategies for repositioning of the Bank;
255 new officers inducted during the year, to infuse young and specialised talent in different specialised areas viz. Credit, IT, Marketing, Agriculture and Treasury etc.;
Further recruitment of 649 Officers, 649 Clerks and 159 sub-staff proposed for the year
Continuing with the process of customer-centric grooming of frontline staff at the branches.

30. NEW INITIATIVES AND THRUST
Garnering Fee Based Income
Tie-up arrangement with 3 more Mutual funds during the year in addition to existing 8, thus providing a bountiful basket of varied products from the leading mutual funds viz. UTI, ICICI Pru, LIC, Franklin Templeton, HDFC, Reliance, ING, Kotak Mutual, TATA AIG, Birla Sunlife, SBI Mutual Fund, for selling their products;
Tie-up with LIC for selling Life Insurance Products and entered into a referral arrangement with Oriental Insurance for Non-life products. During the year two new products i.e. ‘Oriental Health Royal’ Medi-Claim Scheme & Personal Accident policy, were launched;
Introduced ‘Dena Grah Swami Suraksha Yojna’ in association with LIC to provide Loan linked Life Insurance Cover to a Housing Loan Borrower during the currency of a the Loan;
Facility of franking of stamps extended beyond Mumbai at 11 more branches at New Delhi and in the state of Rajasthan;
Rupee Drawing Arrangement with UAE Exchange for inward remittances of NRI funds similar to existing arrangements with Western Union Money & Times of Money.

31. NEW INITIATIVES AND THRUST
Priority Lending
Collaborated with Gujarat Green Revolution Co Ltd for promoting lending under Micro Irrigation Scheme – Drip & Sprinkler Irrigation
‘Dena Swachha Gram Yojna’, a scheme to provide collateral free finance for construction of Toilets / Bathrooms in rural areas;
‘Dena Paryavaran Suraksha Yojna’, a scheme to finance auto rickshaw owners for acquiring / fitting CNG / LPG gas kit in old auto rickshaws, to curb environmental air pollution. The Bank has so far financed 900 such auto rickshaw owners, thus contributing to a safer environment, in a subtle way;
Tie up with NBHC for financing to farmers and others against pledge of godown receipts.
MoU signed with M/S Zero Microfinance Saving Support Foundation as Service provider and with M/S A Little World As technology provider for the financial inclusion in 2 districts of Gujarat covering 135 villa

32. NEW INITIATIVES AND THRUST
Corporate Social Responsibility
Continues to sponsor One Girl Child at each of the villages in its command area of operation in the state of Gujarat, for pursuing secondary education under the scheme Dena Shiksha Protsahan Yojana, and 521 scholarship have been provided under the scheme so far;
Adopted 51 villages in the State of Gujarat for all round development;
Sponsored 2 RUDSETIs at Mehsana & Bhuj in the state of Gujarat to provide training to rural youth and women enabling them acquire skills for self-employment. More than 2864 rural youth trained so far;
Pro-actively promoting the Innovators with need based & collateral free financing;

33. NEW INITIATIVES AND THRUST
Road Map ahead
Plans to open at least 26 new branches and 12 Retail Asset Centres during the current year;
342 more Branches are planned to be rolled out under CBS during FY thus, covering 74% of the Bank’s business;
To expand outreach and facilitate rural centres with a greater number of bio-metric ATMs;
New avenues of fee based income viz. tie ups with more mutual funds / exchange houses etc.;
Committed to reposition itself as a robust medium sized Bank with strong fundamentals;
Plans to expand Depository business and other related services.

34. Thank You