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Dena Bank to face RBI heat as it reports loss for two consecutive years

Under PCA, RBI can clamp down on bank's business activities, curbing lending and branch expansion

Abhijit Lele  |  Mumbai 

People outside Dena Bank
Dena Bank's net loss for the year ended March 2017 narrowed to Rs 836 crore from Rs 935 crore in FY16, but is Q4 loss widened due to fall in net interest income and rise in provisions for bad loans

is heading for (PCA) after reporting net loss for a second consecutive financial year.
 
Under PCA, the Reserve Bank of India (RBI) will clamp restrictions on business activities, including curbs on lending and branch expansion. This is done to bring an ailing bank on the recovery path.


 
The public sector lender’s net loss for the year ended March 2017 declined to Rs 836 crore from Rs 935 crore in year ended March 2016.
 
Ashwani Kumar, chairman and managing director of Dena Bank, said the would put restrictions on lending. The lender would also not increase headcount this financial year. There might be replacement hiring for those retiring, Kumar added. The bank will not open new branches in 2017-18 but will focus on rationalising branches. The Mumbai-based public sector lender had 1,874 branches at the end of March 2017, up from 1,846 branches a year ago. Dena is one of the 10 public sector bank identified by the government that will have to present a medium-term turnaround plan before it can get capital.
 
Its stock closed lower by five per cent at Rs 44 a share on the Dena’s net interest income for the reporting quarter declined from Rs 625 crore in January-March 2016 to Rs 450 crore.
 
Net loss widened to Rs 575 crore in fourth quarter ended March 2017 from Rs 326 crore in the fourth quarter of the previous financial year, due to a fall in net interest income and rise in provisions for Provisions for non-performing asset (NPAs) rose to Rs 972 crore in Q4FY17 from Rs 900 crore in Q4FY16. Gross rose to Rs 12,618 crore (16.27 per cent) at the end of March 2017 from Rs 8,560 crore (9.98 per cent) at the end of March 2016.
 
Net were at 10.66 per cent for the end of March 2017, another reason for triggering the
The board has approved a proposal to raise of up to Rs 1,800 crore through issuance of shares to government on preferential basis and via routes such as qualified institutional placement.
 
The ratio stood at 11.39 per cent with tier-I capital of 9.05 per cent at the end of March 2017.

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Dena Bank to face RBI heat as it reports loss for two consecutive years

Under PCA, RBI can clamp down on bank's business activities, curbing lending and branch expansion

Publicsector lender Dena Bank's net loss widened to Rs 575 crore in fourth quarterended March 2017 from Rs 326 crore in Q4 of last financial year on fall in netinterest income and rise in provisions for bad loans.Its net lossfor the year ended March 2017 declined to Rs 836 crore from Rs 935 crore inyear ended March 2016, according to audited financial results filed with StockExchanges. Its stockwas trading 4.3 per cent down at Rs 45 per share on Bombay Stock Exchange. The netinterest income (NII) for the reporting quarter shrunk from Rs 625 crore inJanuary-March 2016 from Rs 450 crore.Theprovisions for non-performing asset (NPAs) rose to Rs 972 crore in Q4Fy17 fromRs 900 crore in Q4FY16. The Gross NPAs rose to Rs 12,618 crore (16.27 per cent)at end of March 2017 from Rs 8,560 crore (9.98 per cent) at end of March 2016.The boardhas given nod to equity capital upto Rs 1,800 crore through issuance of shareto government on preferential basis and routes like Qualified ...

is heading for (PCA) after reporting net loss for a second consecutive financial year.
 
Under PCA, the Reserve Bank of India (RBI) will clamp restrictions on business activities, including curbs on lending and branch expansion. This is done to bring an ailing bank on the recovery path.
 
The public sector lender’s net loss for the year ended March 2017 declined to Rs 836 crore from Rs 935 crore in year ended March 2016.
 
Ashwani Kumar, chairman and managing director of Dena Bank, said the would put restrictions on lending. The lender would also not increase headcount this financial year. There might be replacement hiring for those retiring, Kumar added. The bank will not open new branches in 2017-18 but will focus on rationalising branches. The Mumbai-based public sector lender had 1,874 branches at the end of March 2017, up from 1,846 branches a year ago. Dena is one of the 10 public sector bank identified by the government that will have to present a medium-term turnaround plan before it can get capital.
 
Its stock closed lower by five per cent at Rs 44 a share on the Dena’s net interest income for the reporting quarter declined from Rs 625 crore in January-March 2016 to Rs 450 crore.
 
Net loss widened to Rs 575 crore in fourth quarter ended March 2017 from Rs 326 crore in the fourth quarter of the previous financial year, due to a fall in net interest income and rise in provisions for Provisions for non-performing asset (NPAs) rose to Rs 972 crore in Q4FY17 from Rs 900 crore in Q4FY16. Gross rose to Rs 12,618 crore (16.27 per cent) at the end of March 2017 from Rs 8,560 crore (9.98 per cent) at the end of March 2016.
 
Net were at 10.66 per cent for the end of March 2017, another reason for triggering the
The board has approved a proposal to raise of up to Rs 1,800 crore through issuance of shares to government on preferential basis and via routes such as qualified institutional placement.
 
The ratio stood at 11.39 per cent with tier-I capital of 9.05 per cent at the end of March 2017.

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Business Standard
177 22

Dena Bank to face RBI heat as it reports loss for two consecutive years

Under PCA, RBI can clamp down on bank's business activities, curbing lending and branch expansion

is heading for (PCA) after reporting net loss for a second consecutive financial year.
 
Under PCA, the Reserve Bank of India (RBI) will clamp restrictions on business activities, including curbs on lending and branch expansion. This is done to bring an ailing bank on the recovery path.
 
The public sector lender’s net loss for the year ended March 2017 declined to Rs 836 crore from Rs 935 crore in year ended March 2016.
 
Ashwani Kumar, chairman and managing director of Dena Bank, said the would put restrictions on lending. The lender would also not increase headcount this financial year. There might be replacement hiring for those retiring, Kumar added. The bank will not open new branches in 2017-18 but will focus on rationalising branches. The Mumbai-based public sector lender had 1,874 branches at the end of March 2017, up from 1,846 branches a year ago. Dena is one of the 10 public sector bank identified by the government that will have to present a medium-term turnaround plan before it can get capital.
 
Its stock closed lower by five per cent at Rs 44 a share on the Dena’s net interest income for the reporting quarter declined from Rs 625 crore in January-March 2016 to Rs 450 crore.
 
Net loss widened to Rs 575 crore in fourth quarter ended March 2017 from Rs 326 crore in the fourth quarter of the previous financial year, due to a fall in net interest income and rise in provisions for Provisions for non-performing asset (NPAs) rose to Rs 972 crore in Q4FY17 from Rs 900 crore in Q4FY16. Gross rose to Rs 12,618 crore (16.27 per cent) at the end of March 2017 from Rs 8,560 crore (9.98 per cent) at the end of March 2016.
 
Net were at 10.66 per cent for the end of March 2017, another reason for triggering the
The board has approved a proposal to raise of up to Rs 1,800 crore through issuance of shares to government on preferential basis and via routes such as qualified institutional placement.
 
The ratio stood at 11.39 per cent with tier-I capital of 9.05 per cent at the end of March 2017.

image
Business Standard
177 22