Dena Bank shares surges over 13% on capital raising plans

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New Delhi | Updated: Dec 01, 2015 4:05 PM

Dena Bank shares soared after it said that a meeting of the Board of Directors will be held on Dec 3 to consider raising AT1 and Tier 2 capital upto an amount of Rs 1,500 crore and Rs 1,000 crore, respectively, in one or more tranche.

sensex, Dena Bank share price, Dena BankDena Bank share price soared as much as 13.17 per cent on Tuesday after the bank informed stock exchanges that a meeting of the Board of Directors will be held on December 03 (Express photo by Heena Khandelwal)

Dena Bank share price soared as much as 13.17 per cent on Tuesday after the bank informed stock exchanges that a meeting of the Board of Directors will be held on December 03 to consider raising AT1 and Tier 2 capital upto an amount of Rs 1,500 crore and Rs 1,000 crore, respectively, in one or more tranche. The bank will also consider to raise equity capital of the bank by diluting the government of India’s (GOI) holding upto 52 per cent on obtaining necessary approval.

At 2.49 pm, the share price of Dena Bank was trading 7.83 per cent up at Rs 45.45. The scrip opened at Rs 42.20 and had touched a high and low of Rs 47.70 and Rs 41.80, respectively, intrade so far. Sensex was marginally up 0.12 per cent at 26,168.64. Later, the share price of the company closed 7.83 per cent up at Rs 45.45.

The bank reported 24.85 per cent fall in its net profit at Rs 38.76 crore for the quarter ended September 30, 2015 as compared to Rs 51.58 crore for the same quarter in the previous year.

Gross non-performing assets (NPAs) of the bank have increased to 6.84 per cent for the quarter as against 5.12 per cent in the same quarter previous year. Besides, bank’s net NPA stood at 4.65 per cent in Q2FY16.

In the past one year, the share price of Dena Bank declined 30 per cent to Rs 42.15 on November 30. Sensex slid 8.45 per cent during the same period.

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