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Sunday, November 10, 2013

Dena Bank Q2 net down 55% to Rs 107 cr on higher provisions

Public sector lender Dena Bank reported a 55.19 per cent decline in net profit at Rs 107.38 crore for the quarter ended September 30, 2013 on account of higher provisions. The bank’s profit after tax stood at Rs 239.64 crore in the corresponding quarter last year.

“The profit has come down mainly on account of higher provisions, which we had to provide for treasury and restructuring and NPA advances,” the bank’s Chairman and Managing Director Ashwani Kumar told reporters here.

The bank’s provisions increased to Rs 266 crore in the second quarter as against Rs 197 crore in the last quarter.

For the half year, it has gone up by Rs 242 crore to Rs 659 crore from Rs 417 crore, Kumar said.

The bank exercised the option of providing the net depreciation on the entire Available for Sale (AFS) and Held for Trade (HFT) categories of government bonds portfolio in three equal instalments.

“Accordingly, provision to the extent of Rs 129 crore has been made against the net depreciation of Rs 387 crore on the entire AFS and HFT investment portfolio as on September 30,” the bank said.

The bank transferred Rs 1,600 crore of SLR securities to Held to Maturity category during the quarter, Kumar said.

The net interest income stood at Rs 625.17 crore as against Rs 597.23 crore in the same period last year.

Gross non performing assets of the bank increased to 3 per cent during the quarter from 1.97 per cent year—ago.

Net NPA rose to 2.02 per cent from 1.74 per cent.

The bank had fresh slippages of Rs 485 crore on three major loan accounts. “There were three large NPA accounts — Rs 200 crore from Delhi Airport Metro Express, Rs 100 crore from an European project and Rs 38 crore from KMP Expressway,” Kumar said.

The state—owned bank restructured Rs 490 crore of loans in the quarter.

Among the major accounts, the bank restructured loan amount of Rs 156 crore of Jyoti Ltd, Rs 100 crore of Bombay Rayon and Rs 35 crore of Rathi Steel and Power.

“We have a restructuring pipeline of Rs 500 crore in the current quarter,” Kumar said.

In the period under review, the bank’s net interest margin (NIM) stood at 2.57 per cent as against 2.86 per cent in the same period last year.

“We expect our NIM to be in the range of 2.75 per cent by March 2014,” Kumar said.

The bank’s total business increased by Rs 16,375 crore with a growth of 11.45 per cent year—on—year basis and stood at Rs 1,59,333 crore as against Rs 1,42,958 core in the year—ago quarter.

The bank’s deposits have increased by 12 per cent to Rs 93,669 crore in the quarter. Total advances in the quarter grew by 11 per cent to Rs 65,664 crore. The credit deposit ratio stood at 70.10 per cent.

Source: thehindubusinessline


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