The Chairman and Managing Director of Dena bank, Mr. D. L. Rawal, is hopeful of getting capital infusion of Rs 500 crore for the bank, from the central government in September. The bank is also working out ways to get additional infusion of Rs 400 crore in 2010-11 from the government.

Mr. Rawal, on the sidelines of a banking conference organized by the Federation of Indian Chamber of Commerce and Industry (FICCI), said: "We have made a request for Tier I capital worth Rs 500 crore to the Government and it has given an in-principle approval. We will receive Rs 300 crore by way of preferential shares and Rs 200 crore by way of perpetual non-cumulative preference shares." He expressed satisfaction over the current liquidity level, and said that the bank may push up interest rates, in case there is a liquidity crunch.

Dena Bank reported 23 per cent on year-on-year credit growth rate during the first quarter of the current financial year. Its capital adequacy ratio stood at 12.07 per cent on March 31, 2008; but the net interest margin remained almost flat. The bank hopes to report 20 per cent increase in credit and deposits by August-September this year.