Dena Bank posts Rs279 crore loss in Q1 on higher provisions
Mumbai: Dena Bank Ltd on Friday reported a net loss of Rs.279.35 crore in the June quarter against a net profit of Rs.15.16 crore a year ago as it set aside more money to cover bad loans.
Operating profit increased to Rs.270.44 crore in the three months from Rs.226.30 crore in the same period last year.
Provisions increased to Rs.666.85 crore in the fiscal year first quarter from Rs.324.75 crore a year ago. The provision coverage ratio was 52.13%.
Out of total provisions, the bank set aside Rs.19.03 crore for a loan availed by the government of Punjab under its food credit programme. The outstanding loan amount stood at Rs.397.21 crore as of 30 June.
Net interest income decreased slightly to Rs.620.88 crore in the quarter from Rs.628.19 crore a year ago.
Gross non-performing assets (NPAs) almost doubled to Rs.9,636.32 crore in June from Rs.4,840.70 crore.
As a percentage of total loans, gross NPAs stood at 11.88% at the end of the June quarter, compared with 9.98% in the previous quarter and 6.20% in the year-ago quarter.
Net NPAs stood at 7.65% for the June quarter compared with 6.35% in the last quarter and 4.24% a year ago.
Capital adequacy ratio stood at 10.79% according to Basel III norms.
Dena Bank shares rose 3.32% to Rs.37.35 at the close of trading on BSE on a day the benchmark Sensex gained 1.05% to 28,152.40 points.