Public sector Dena Bank’s net profit plunged 81.4 per cent to Rs 15.16 crore in the first quarter ended June 30 in the current fiscal on a sharp rise in bad loans.
Bank’s net profit in the same quarter of last fiscal, 2014-15, was at Rs 81.52 crore.
The steep fall was attributed to a sharp rise in Non Performing Assets (NPAs) and consequently a higher allocation towards provisioning.
Its income increased marginally by 3.2 per cent to Rs 2,914.87 crore in the first quarter of 2015-16, as against Rs 2,824.58 crore in the year-ago period, Dena Bank said in a BSE filing.
The asset quality deteriorated further as gross NPAs or bad loans shot to 6.2 per cent of gross advances during the quarter under review as against 4.21 per cent a year ago.
Its net NPAs too rose further to 4.24 per cent from 2.94 per cent of net advances.
Thus, the provision towards bad loans and contingencies was raised by over 42 per cent to Rs 324.75 crore during the quarter, from Rs 228.06 crore a year ago.
Dena Bank stock was trading 3.41 per cent up at Rs 43.95 on the BSE.