Dena Bank on Saturday reported a loss of R44.32 crore for the September quarter on account of higher provisions for bad loans. The state-owned lender’s net profit stood at R38.76 crore in the same period last fiscal.
Total income of the bank increased to R2,914.13 crore during the quarter as against R2,872.0 crore in the year-ago period, up merely 1.5%, Dena Bank said in a filing to the stock exchanges. The topline would have been even lower had there not been a 60% rise in other income at R306.77 crore.
Dena Bank’s net interest income (NII), which is the difference between interest earned and interest expended, remained nearly flat y-o-y at R671.49 crore.
The lender also reported a weakening of its asset quality on y-o-y basis as well as on a sequential basis. Gross non-performing loans—as a percentage of total loans – increased by as much as 695 basis points year-on-year to 13.79%, while net NPA shot up 428 bps over the same period to 8.93%. Sequentially, the increase in gross and net NPA came in at 191 bps and 128 bps, respectively.
In absolute terms, the bank reported gross non-performing loans of R10,824.50 crore and net non-performing loans of R6,623.00 crore, as on September 30.
Consequentially, Dena Bank was forced to increase its provisions for bad loans too. For the quarter under review, the bank made provisions totaling R554.46 crore, 93.3.% higher y-o-y.