Public sector lender Dena Bank’s net profit plunged 81.4% to Rs 15.16 crore in the quarter ended June 30, 2015, on a sharp rise in NPA provisions. The bank’s net profit in the same quarter of last fiscal was Rs 81.52 crore. Provisions and contingencies were up 42% to Rs 324.7 crore in the June quarter.
Net interest income (NII) — difference between interest earned and interest expended—stood at R628.19 crore, up 2.65% y-o-y. Total income stood at Rs 2,914.7 crore in Q1FY16, up 3.19% y-o-y.
“Our staff expenses rose around R70 crore and provisions for NPAs also increased in the quarter to R340 crore from Rs 202 crore in the same period last year,” chairman and managing director Ashwani Kumar said.
The bank’s operating expenses rose 24% to Rs 548 crore against Rs 442.63 crore in the year-ago quarter. The employee cost increased to Rs 355.56 crore from Rs 289.62 crore and it made a provision of R36.48 crore towards balance of arrears for wage revision, which is effective November 1, 2012.
Asset quality of the bank worsened in Q1FY16 with gross non-performing assets at 6.20% against 4.21% in Q1FY15. Fresh slippages in the quarter were of Rs 808 crore.