Dena Bank posts net profit of Rs 70.53 cr for Q3

Mumbai, Jan 19 | Updated: Jan 20 2007, 06:03am hrs
The state-owned Dena Bank has posted a net profit of Rs 70.53 crore for the third quarter (Q3) of current financial year, a decline by 15.21% from Rs 83.18 crore in the same quarter in the previous year. However, the net profit for the nine months, which ended on December 31, 2006, stood at Rs 157.77 crore from Rs 57.48 crore a year ago, a jump of 174.48%.

In the treasury operations, the bank received some setback where the treasury revenue dropped by 56.6% to Rs 53.4 crore in third quarter of 2006-07 from Rs 123.06 crore in the same quarter last year. Explaining the decline PL Gairola, chairman and managing director, Dena Bank said, The fall in treasury revenue is on account of sale of long dated securities. The bank plans to maintain its investment in statutory liquidity ratio (SLR) securities at 27.5% from the current level of 28.2%.

The banks net interest margin decreased marginally to 3.12% for the nine months as compared to 3.16% in the previous year, while for third quarter it was 3.15% against 3.43% in the last year. The deposits increased by 18.19% to Rs 25,529 crore during the reporting quarter as compared to Rs 21600 crore in the third quarter last year, whereas advances increased to Rs 17206 crore as against Rs 13456 crore, a rise of 27.27%. Commenting on capital raising plans, he said, Our present CAR is above 12% and adequate to support my needs for the fourth quarter and first quarter of the next financial year and as such there may be some capital raising exercise in the second quarter.

The bank reduced its gross net performing assets (NPAs) to 4.99% for the reporting quarter from 7.49% previously, while net NPAs came down to 2.47% from 3.37%.