''Stepping in 21st Century''. Review on Dena Bank

A financer by name Devkaran Nanji started a bank called Devkaran Nanji Bank in 1938 which later on became Dena Bank and was nationalised by the then Prime Minister Late Mrs. Gandhi in 1969 since then it has came a long way.

I hold a Savings Account with this bank since 1996. The first reaction for the public at large would be that 'don't bank with a nationalised bank'. But, my first hand experience in comparison to all of them is excellent. To operate a Savings Account one is required to keep a minimum balance of Rs. 500/-. Usually, its being said that nationalised bank don't give an ear to their customers after banking hours but my experience in this respect is totally of contrary kind. I always used to visit my bank after banking hours to solve queries and to everyone's surprise they would respond very decently. Whether, I want to withdraw cash or in need of demand draft all services are prompt, no unnecessary wastage of time. For, issuing a demand draft maximum time taken by them is an hour. The commission rates for demand draft, telegraphic transfer, etc. are highly competitive, for a demand draft upto Rs. 1,000/- they would charge Rs. 5/- to an account holder and Rs. 7.50 to a non-account holder, for a demand draft from 1,001/- to Rs. 5,000/- they would charge Rs. 10/- to an account holder and Rs. 15/- to a non-account holder and so on. Cheque Book charges are Re. 1/- per cheque. For, Forex transactions they are costly; for a draft upto $200/- they would charge you Rs. 180/- while State Bank of India charges Rs. 110/-, so on this front they are costly. They have ''ATM'' machines at very few of their total number of branches.

Having a loan from the bank or getting your account sanctioned for overdraft, cash credit, etc. isn't hectic. From the day when the account holder submits all the required legal documents with the application, within 15 days the account holder receives the sanctioning letter (subject to the concerned authority is satisfied). Even if the concerned authority doesn't sanction the loan they would furnish satisfactory explanation and would further guide you.

Investing in shares of Dena Bank would be quite risky. NPA of this bank is heading towards Rs. 1,000 crores (as stated in the prospectus for IPO) the bank are taking steps to minimise the NPA but doesn't seem to be working. The Government of India holds 70% of total share capital, near about 13% is being hold by the public at large and remaining is being held by financial institutions. So, to be globally competitive they would be required to be thoroughly professional.