Dena Bank net falls 52% as gross NPAs jump 96%

Public sector lender Dena bank reported a 51.96% year-on-year decline in the net profit…

Public sector lender Dena bank reported a 51.96% year-on-year decline in the net profit, which stood at Rs 51.58 crore for the quarter ended September on account of an increase in the non-performing loans and the provisions.

The net interest income (NIM) decreased 0.33% y-o-y to Rs 624.84 crore compared with Rs 625.17 crore in the same period last year.

The net interest margin for the quarter increased 9 basis points to 2.32% compared with 2.23% in the June quarter of the current fiscal, but fell 27 bps y-o-y.

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“Profit in this quarter came down mainly on account of higher provisions and a number of fresh slippages. The fraud at Malabar Hill branch also had a negative effect on the net profit,” said Dena Bank CMD Ashwini Kumar.

Bank’s total income grew 10.97% y-o-y to Rs 2,885.22 crore. Meanwhile, operating profit decreased by 13.69% y-o-y to Rs 318.82 crore compared with Rs 369.37 crore in the second quarter of the last fiscal.

Gross non-performing loans stood at Rs 3,861.26 crore, which is up 96.17 % y-o-y, while the net NPA rose 102% year-on-year. Gross NPA ratio including the Malabar Hill fraud case stood at 5.12% compared with 4.21% in the preceding quarter.

The net NPA ratio stood at 3.59%. Bank effected a cash recovery and upgradation in the current year which stood at Rs 427.21 crore and its provision coverage ratio for the September quarter was at Rs 51.90 crore.

Total advances of the bank grew 14.78% year-on-year to Rs 75,367 crore and retail credit grew 15.71% to Rs 9,633 crore from the second quarter of the last fiscal. Total deposits in the bank grew 13.66% y-o-y at Rs 1,06,460 crore.

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First published on: 11-11-2014 at 00:09 IST