AUDITED FINANCIAL RESULTS For the year ended 31st March 2008

PROFILE
70 Yrs of banking - Founded on 26th May, 1938 as Devkaran Nanjee Banking Company Ltd.; Rechristened as The Dena Bank Ltd in Dec66;

Nationalized on 19th July, 1969 - 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 51.19 %
2

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 VileParle, Mumbai (Bombay);

Specialized Training Institute for Computer Literacy : Dena Institute of Information Technology (DIIT), Mumbai (1997);
Customer Service Rating of Branches.

SNAPSHOT
Snap Shot as at 31st March 08

1160 Branches
316 ATMs Net Loans 23024

CRAR 11.09%

Deposits 33943

BVPS Rs.57.35

Net Profit 360

Amount in Rs. Crore 4

KEY INDICATORS
[Rs. Crore] Total income Total expenses Operating Profit Operating profit without profit on sale of NPAs Provisions Net Profit NIM - % EPS [Rs.] [non annualized] Return on Assets [Annualized] - % F.Y. 2005-06 2199.17 1598.80 600.37 F.Y. 2006-07 2510.04 1874.67 635.37 2007-08 3154.02 2467.58 686.44 Growth [%] 25.66 31.63 8.04 Quarter Mar07 684.24 499.97 184.27 Mar08 882.98 664.05 218.93 Growth [%] 29.05 32.82 18.81

475.04

565.71

686.44

21.34

181.04

218.93

20.93

527.38 72.99 2.95 2.54

433.81 201.56 3.00 7.03

326.65 359.79 2.75 12.54

[24.70] 78.50

140.47 43.80 3.27 1.53

107.94 110.99 2.85 3.87

[23.16] 153.40

0.29

0.71

1.06

0.58

1.21

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 [%] Net NPA Ratio [%] CRAR [%]

22197.72 1425.34 23623.06 14747.79 8635.28 6.44 3.04 10.62

26506.01 1183.90 27689.91 18683.07 9324.54 3.98 1.99 11.52

32232.39 1710.79 33943.18 23381.16 10335.46 2.45 0.94 11.09

NET INTEREST INCOME

F.Y. [Rs. Crore] 2005-06 Interest Income Advances Investment Inter Bank Others Interest Expense Deposits Others Net Interest income [NII] 1760.13 984.85 714.09 36.87 24.32 1037.45 973.37 64.08 722.68 2006-07 2118.52 1391.80 665.09 39.88 21.75 1263.16 1189.67 73.49 855.36 2007-08 2710.05 1953.37 726.05 19.92 10.71 1817.14 1718.11 99.03 892.91 Growth [%] 27.92 40.35 9.17 [50.05] [50.76] 43.86 44.42 34.75 4.39 Quarter Mar07 584.49 396.73 170.50 17.14 0.11 351.57 328.73 22.84 232.91 Mar08 739.24 545.22 185.67 2.34 6.01 500.99 471.35 29.64 238.25 42.50 43.39 29.77 2.29 Growth [%] 26.48 37.43 8.90 [86.35]

includes interest on income-tax refund of Rs.21.56 crore for the year 2006-07 & Rs.10.08 for the year 2007-08

NON INTEREST INCOME

[Rs. Crore] Commission of which from 3rd party products Govt. Business Locker rent Profit from Securities Profit from sale of Properties Forex Exchange Process fee F.Y. 2005-06 87.44 4.82 4.79 7.17 125.33 56.32 25.26 22.59 [19.96] 7.70 4.42 77.38 2006-07 125.20 5.52 6.00 8.48 39.45 0.00 30.76 28.37 [30.72] 10.58 5.42 155.60 2007-08 120.94 9.36 6.88 8.58 90.02 29.95 42.03 30.10 [34.15] 11.38 7.04 114.29 36.64 6.10 11.16 7.56 29.89 [26.55] Growth [%] [3.40] 69.57 14.67 1.18 128.19 Quarter Mar 07 31.16 1.69 2.35 2.20 3.23 0.00 11.76 10.08 [8.63] 4.09 1.98 37.02 Mar 08 34.69 3.42 1.94 2.35 8.48 30.24 7.48 11.24 [9.00] 3.69 2.18 43.23 [36.39] 11.51 4.29 [9.78] 10.10 16.77 Growth [%] 11.33 102.37 [17.45] 6.82 162.54

Amortization of premium on investments [HTM]

Incidental charges Supervision charges Recovery in written off advances

Other Misc.
Total non interest income

52.55
439.03

26.86
391.53

32.37
443.97

20.51
13.39

6.86
99.75

11.51
143.74

67.78
44.10

includes commission income of Rs.16.93 crore due to change in accounting policy includes Rs.69.66 crore recoveries on account of sale of NPA assets.

OPERATING EXPENSES
F.Y.

[Rs. Crore]
2005-06 Staff Expenses Insurance Postage/Telephone Printing/Stationery Depreciation Lighting Rent & Taxes Advertising Auditors Fees Repairs/Maintenance Core Banking Solution Other Expenses Total Expenses 354.25 24.98 9.45 8.45 32.41 15.50 30.06 12.77 5.37 17.30 0.00 50.81 561.35 2006-07 384.08 28.65 15.93 9.52 31.78 16.57 32.00 11.05 5.21 17.96 0.00 58.76 611.51 2007-08 370.85 33.75 9.31 10.34 29.45 19.38 36.95 9.47 7.64 19.13 35.65 68.51 650.44

Growth [%] [3.44] 17.80 [41.56] 8.61 [7.33] 16.96 15.47 [14.30] 46.64 6.51

Quarter Mar 07 86.12 7.51 8.61 2.30 5.92 3.80 7.13 3.76 1.63 4.68 0.00 Mar 08 85.77 8.53 2.23 2.61 8.26 4.08 10.45 4.39 2.33 4.71 8.65 21.05 163.06

Growth [%] [0.41] 13.58 [74.10] 13.48 39.53 7.37 46.56 16.76 42.94 0.64

16.59 6.37

16.94 148.40

24.26 9.88 9

PROVISION & CONTINGENCIES

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

10

RESOURCES
[Rs. Crore] 31.03.06 31.03.07 31.03.08 % growth

Current Deposits Savings Deposits Term Deposits Aggregate Deposits CASA [%] Inter Bank Deposits TOTAL DEPOSITS Borrowing

2327.10 7930.63 11939.99 22197.72 43.65 1425.34 23623.06 0.99

3214.41 9043.59 14248.01 26506.01 44.51 1183.90 27689.91 450.94

3015.97 10239.19 18977.23 32232.39 41.13 1710.79 33943.18 394.61

[6.17] 13.22 33.19 21.60

44.50 22.58 [12.49]

11

RESOURCES
33943 35000 30000 25000 20000 15000 10000 5000 0 2005-06 2006-07 Deposits 2007-08 23623 27690

12

DEPLOYMENT
[Rs. Crore] 31.03.06 31.03.07 31.03.08 Growth over Mar 07 25.15 21.53 27.00 18.83

Gross Advances Priority Sec. Advance Agriculture Others PS credit to NBC [%] Retail Credit S.M.E CD Ratio [%] Gross investment

14748 6074 2363 3711 42.20 2249 2388 62.43 8635

18683 6662 2200 4462 45.17 3423 3158 67.47 9325

23381 8096 2794 5302 43.32 4297 3885 68.88 10335

25.53 23.02

10.83

13

DEPLOYMENT
Growth [%] [Rs. Crore] Mar 06 Mar 07 Mar 08 [y on y]

Net Advances
Net Investments

14231
8571

18303
9235

23024
10283

25.79
11.35

25000

23024 18303

10500 10000

10283

20000

14231
15000

9235
9500 9000

8571

10000 8500 5000 8000 7500 Mar '06 Mar '07 N et Advances Mar '08 Mar '06 Mar '07 N et Investments Mar '08

14

INVESTMENT
[Rs. Crore] 31.03.07 31.03.08 [Rs. Crore] 31.03.07 31.03.08

Held to Maturity

7463.15 [80.04%] 1858.56 [19.93%] 2.82 [0.03%] 9324.53

8622.00 [83.43%] 1612.26 [15.60%] 100.72 [0.97%] 10334.98

Govt Securities

7646.76

8475.53

Available for Sale

Other Approved Securities

163.53

119.78

Held for Trading Total

Shares / Equity Debentures / Bonds

145.20 909.16

227.73 899.75

[Rs. Crore]

31.03.07 7664.65 [82.20%] 1659.88 [17.80%] 9324.53

31.03.08 8595.31 [83.17%] 1739.67 [16.83%] 10334.98 Subsidiaries / Jt. Ventures 21.72 21.72

SLR Non-SLR Total

Others Total

438.16 9324.53

590.47 10334.98 15

CAPITAL ADEQUACY
[Rs. Crore] 31.03.06 31.03.07 31.03.08

Tier I capital Tier II capital Total capital funds Total RWAs Core CRAR Tier I CRAR on Tier II CRAR [Total] Net Worth

848.23 662.97 1511.20 14225.29 5.96 4.66 10.62 848.23

1086.81 979.37 2066.18 17941.01 6.06 5.46 11.52 1086.81

1535.55 986.38 2521.93 22742.25 6.75 4.34 11.09 1410.55

16

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

17

ASSET QUALITY
25000

23024 6.44 18683 14748 3.98

7 6 5 4 3

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%;

20000 15000 10000 5000 0 Mar '06

2.45

2 1 0

Mar '07

Mar '08

Gross Advances

Gross NPA

25000

23024 3.04 18303

3.5 3 2.5

Aggressive efforts on Recovery in NPAs & Written off A/cs through action under SARFAESI & One Time Settlements;

20000 15000 10000 5000 0

14231
2

1.99

1.5 1

0.94

0.5 0

Mar '06

Mar '07
Net Advances

Mar '08
Net NPA

18

ASSET QUALITY
[Rs. Crore] Gross NPA Opening Balance Less: Cash recoveries Upgradations 227.07 31.41 247.29 76.61 184.86 114.07 [25.25] 48.90 1147.54 949.40 744.48 Mar 06 [FY] Mar 07 [FY] Mar 08 [FY] Variation [%]

Write off
Total Reductions Add:

273.63
532.11

414.78
738.68

288.96
587.89

[30.33]
[20.41]

Slippage & Debit Operations

Closing Balance

333.97
949.40

533.76
744.48

416.01
572.60

[22.06]

19

FINANCIAL RATIOS [cost/yield]

[Financial Year] Mar06 Cost of Deposits [%] Cost of Funds [%] Yield on Advances [%] Yield on Investments with POSOI [%] Yield on Investments without POSOI [%] Yield on Funds [%] 4.58 4.66 7.80 Mar07 4.89 5.19 8.66 Mar08 5.90 5.95 10.11 [Quarter] Mar07 5.09 5.45 9.13 Mar08 6.08 6.13 10.08

9.19

7.74

7.74

7.39

7.58

7.82

7.52

6.88

7.39

7.26

7.46

7.84

8.22

8.08

8.35

20

FINANCIAL RATIOS
[F. Y] Mar06 Int. Income as %age to avg. working funds Non Int. Income as %age to avg working funds Int. spread as %age to avg working funds (NII/Avg. Gross Assets) Operating Profit as %age to avg working funds Net Interest Margin [%] [NII / Income generating assets] Mar07 Mar08 Mar07 [Q] Mar08

7.03

7.47

7.97

7.72

8.04

1.89

1.38

1.31

1.32

1.56

2.88

3.02

2.63

3.07

2.59

2.48

2.24

2.02

2.43

2.38

2.95

3.00

2.75

3.27

2.85

21

FINANCIAL RATIOS
[F. Y] Mar06 Earning Per Share Rs. [non-annualized] Cost Income Ratio [%] Return on Assets [%] [annualized] Return on Networth [%] [annualized] Profit Per Branch [in Rs. Lacs] [annualized] Profit Per Employee [in Rs. Lacs] [annualized] 2.54 47.50 0.29 Mar07 7.03 49.04 0.71 Mar08 12.54 48.65 1.06 Mar07 1.53 44.61 0.58 [Q] Mar08 3.87 42.69 1.21

9.02

21.21

40.20

16.68

34.81

7.13

19.46

33.91

4.23

41.84

0.72

1.99

3.61

0.43

4.46

22

FINANCIAL RATIOS
[F. Y] 31.03.06 31.03.07 31.03.08

Coverage Ratio [%] Book Value Rs. [including Revaluation Reserve]

1.56

2.26

3.41

39.11

46.85

57.35

Book Value Rs. [excluding Revaluation Reserve] Business Per Branch [in Rs. Crore] Business per Employee [in Rs. Crore]

29.57

37.89

49.18

37.51 3.78

44.76 4.58

52.42 5.59

23

ATMs 316 ATMs installed with additional access to over 20,000

ATMs through various tie-up arrangements for benefit of the

Banks 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.
24

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.

25

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;

26

NEW INITIATIVES AND THRUST

Technology
The Bank rolled out 93 branches during the year 2007-08, taking the total CBS branches to108 covering 50 centers and 22 states. With this, 55% of Banks 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 2007 - 2008, 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.
27

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 20000 ATM access points & more than 3.50 lacs Merchant Establishments (MEs) in India and more than 1 million ATMs & 24 million

MEs abroad, to banks 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;
28

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 2008-09. Continuing with the process of customer-centric grooming of frontline staff at the branches.
29

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 30 Money.

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
31

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;
32

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 2008-09 thus, covering 74% of the Banks 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.
33

Thank You
34