Public sector lender Dena Bank is eyeing to concentrate on home loans and fee-based income to increase income in the subsisting financial year.

Mr. DL Rawal, chairman and managing director stated, "We are eyeing 25% growth in our home loan portfolio in 2011-12."

Mr. Rawal stated that Dena Bank has joined hands with 400 builders and is chasing CRISIL star ratings on realty projects with the aim to tap constructors.

Dena Bank will append another 600 builders in 2011-12.

The bank is providing 10.5% interest rate on floating basis to its home loan clients.

Its existing home loan book stands at Rs 5,400 crore.

Previously, Dena Bank had a special plan on home loan, which was stopped in October 2010.

In the meantime, the banking institution has framed a 22 member group to inspect the avenues of encouraging fee income.

"In a higher interest rate regime, it is important for a bank to increase its fee income. The committee will focus on distributing third party products, CASA (credit account-saving account) ratio improvement and credit syndications," Mr. Rawal added.