Ashwani Kumar, Chairman and Managing Director of the state-run Dena Bank said the bank decided to strengthen its footprint in the eastern part of the country especially in West Bengal and Bihar.

The state-run bank, which is predominantly present in the western part of the country, is turning to east as the region appears less crowded and shows opportunity.

In 2013-14, the bank plans to open at least 13 more branches in the east and northeast regions. This region contributes just about 4 percent or Rs 7000 crore of Dena's business of Rs 1.64 lakh.

The bank plans to mop up the untapped low cost deposits and lend to small scale sectors. It plans to bifurcate the Kolkata zone into Kolkata and Patna as it increases its eastern focus.

While Bihar and Jharkhand will be managed by the Patna zonal office, West Bengal, Odisha and eight northeast states will be under Kolkata zone.

Banks typically prefer to raise the share of CASA deposits in their overall deposit because it is less costly and hence it increases their profit margin. In the asset side, banks earn better returns from SME loans.

In order to improve its farm lending, the bank is also focusing on Haryana and Punjab. The bank may add 150-200 branches this year across the country, Kumar said.