Mumbai: Dena Bank reported almost flat fourth quarter net profit due to lower net interest income. For the fourth quarter, the public sector lender’s net profit grew by 0.16% to Rs111.17 crore.
The net interest margin (NIM) of the bank for the quarter dropped to 2.45% from 2.84% a year ago. Its net interest income in the quarter grew by 4.24% to Rs238.96 crore.
“From the next quarter, our NIM will improve as the advantages of deposit rate cuts will start showing in our balance sheet,” said the bank’s chairman and managing director D.L. Rawal. A impact of a cut in deposit rates takes time to reflect on a bankâ€™s profit and loss account as the low rates are applicable to only new deposits while the effect of a lending rate cut is immediate on outstanding credit portfolio.