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Mumbai, June 14: The state-owned Dena Bank, which has turned red, is likely to suffer a huge loss of over Rs 250 crore during the financial year 2000-2001. The bank had recorded a profit of Rs 62 crore during 1999-2000.

The bank’s board is meeting today to approve the financial results for the year. It may be noted that during the year, the bank’s capital adequacy ratio has fallen from over 11 per cent to seven per cent. The Reserve Bank of India guidelines stipulate a minimum 10 per cent capital adequacy ratio for any bank.

The operating profit of the bank during the year has also dipped to around Rs 160 crore from over Rs 218 crore recorded the previous year. Higher provisioning against non-performing assets, negative credit growth, low deposit growth and low recovery of non-performing assets have together taken a toll on the bank’s performance during the year.