State-owned Dena Bank on Tuesday reported a net loss of `575 crore for the March quarter, compared to a loss of Rs 326 crore in the corresponding quarter last year, owing to a 28% year-on-year (y-o-y) decline in net interest income (NII) to Rs 450 crore in Q4 of FY17.
There was a fall in interest income and asset quality worsened over the period under review. Dena Bank ended the quarter in the red as its provisions rose by 7.8% y-o-y to Rs 972 crore. The total provision for non-performing loans stood at Rs 878 crore. Dena Bank chairman and managing director Ashwani Kumar said that Videocon Industries was the largest loan to slip to the non-performing asset (NPA) category. On prompt corrective action of the Reserve Bank of India (RBI), Kumar said that the bank has not yet received any communication from the central bank.
In terms of asset quality, the bank witnessed a deterioration in the March quarter, both sequentially and on a y-o-y basis. Gross non-performing assets (GNPA) constituted 16.27% of the total advances, as much as 629 basis points (bps) higher than the corresponding quarter last year and 148 bps more than the sequential quarter.