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Dena Bank.

BSE: 532121 Sector: Financials
NSE: DENABANK ISIN Code: INE077A01010
BSE LIVE 15:40 | 21 Nov 24.60 -0.20
(-0.81%)
OPEN

25.10

HIGH

25.10

LOW

24.55

NSE 15:55 | 21 Nov 24.70 -0.05
(-0.20%)
OPEN

24.95

HIGH

24.95

LOW

24.65

OPEN 25.10
PREVIOUS CLOSE 24.80
VOLUME 229853
52-Week high 50.00
52-Week low 24.30
P/E
Mkt Cap.(Rs cr) 2,782
Buy Price 24.60
Buy Qty 65.00
Sell Price 0.00
Sell Qty 0.00
OPEN 25.10
CLOSE 24.80
VOLUME 229853
52-Week high 50.00
52-Week low 24.30
P/E
Mkt Cap.(Rs cr) 2,782
Buy Price 24.60
Buy Qty 65.00
Sell Price 0.00
Sell Qty 0.00

Dena Bank. (DENABANK) - Director Report

Company director report

DIRECTORS' REPORT 2016-2017

To

The Members

1. The Board of Directors has great pleasure in presenting the Annual Report alongwith the Audited Financial Statement of Accounts and the Cash Flow Statement of the Bankfor the year ended March 31 2017.

2. Performance Highlights i) Savings Bank Deposits of the Bank increased from Rs28067 cr as on 31st March 2016 to Rs 36239 cr as on 31st March2017 registering a growth of 29.12%. ii) CASA Deposits of the Bank increased from Rs34369 cr as on 31st March 2016 toRs 43222 cr as on 31st March2017 registering a growth of 25.76%. CASA as percentage of Total Deposit has increasedfrom 29.27% as on 31st March 2016 to 37.93% as on 31st March 2017.iii) Priority Sector Advances increased from Rs 34117 cr as on 31st March2016 to Rs 36992 cr as on 31st March 2017 registering a growth of 8.43% andconstituted 40.71% of Adjusted Net Bank Creditfi(ANBC) surpassing the regulatory minimumof 40%. iv) Agricultural Advances increased from Rs 15912 cr as on 31st March2016 to Rs 16375 cr as on 31st March 2017 registering a growth of 2.90% andconstituted 18.02% of Adjusted Net Bank Creditfi(ANBC) surpassing the regulatory minimumof 18%. v) Priority Sector MSME advances increased from Rs 13957 cr as on 31stMarch 2016 to Rs 15316 cr as on 31st March 2017 registering a growth of9.74% vi) Total Retail advance has registered Y-o-Y growth of 10.35% and stood at thelevel of Rs 13301 cr as on 31st March 2017 as against Rs12053 cr as on 31stMarch 2016. vii) Bank’s Operating profit for the FY 2016-17 has increased by 50.24%to Rs 1390 cr as compared to Rs 925 cr for the FY 2015-16. Increase in the OperatingProfit in FY 2016-17 is mainly due to increase in profit on sale of investment from Rs 107cr during FY 2015-16 to Rs 632 cr during FY 2016-17. viii) Interest income on investmentsfor the FY 2016-17 has increased by 11.43% to Rs 2906 cr as against Rs 2608 cr for theFY 2015-16. ix) Capital to Risk (Weighted) Asset Ratio (CRAR) under Basel III improved andstood at 11.39% as on 31st March 2017 as compared to 11.00% as on 31stMarch 2016. x) Tier I capital ratio of the Bank increased from 8.59% as on 31stMarch 2016 to 9.05% as on 31st March 2017. xi) Cash recovery in NPA accountsincreased from Rs 728 cr of FY 2015-16 to Rs 1120 cr in FY 2016-17. xii) Recovery inWritten-Off accounts increased from Rs 66 cr for FY 2015-16 to Rs 115 cr in FY 2016-17xiii) Cost of Deposits reduced from 7.20% for FY 2015-16 to 6.43% for FY 2016-17 and as aresult Interest Expenses on Deposits reduced from

Rs 7717 cr as on 31st March 2016 to Rs 7213 cr as on 31stMarch 2017. xiv) Key Statistics

(Amt in Rs cr)

Particulars As of 31st March
2016 2017
Deposits 117431 113943
Advances 85811 77538
Business Mix 203242 191481
Investments 35345 40190
Priority Sector 34117 36992
Agriculture 15912 16375

 

Particulars As of 31st March
2016 2017
Retail 12053 13301
MSME-PS 13957 15316
Gross NPA 8560 12619
Net NPA 5230 7735
% of Gross NPA to Gross 9.98 16.27
Advance
% of Net NPA to Net Advance 6.35 10.66

3. Income Analysis

The financial performance of the Bank for the year 2016-2017 is summarized below: (Amtin Rs cr)

Particulars As of 31st March
2016 2017
Operating Profit 925.30 1390.21
Interest Income 10645.73 10181.67
Interest Expenditure 8168.99 7773.31
Net Interest Income 2476.75 2408.36
Non-Interest Income 716.80 1251.39
Provisions and contingencies 1860.62 2253.84
Profit before Tax [1550.89] [1275.36]
Provision for Taxes [615.57] [411.73]
Net Profit [935.32] [863.63]

4. Key Financial Indicators

(in %)

Particulars As of 31st March
2016 2017
Net Interest Margin 2.16 2.00
Return on Assets [0.75] [0.67]
Cost to Income Ratio 71.03 62.01
Provision Coverage Ratio 52.79 50.56
Cost of Deposit 7.20 6.43
Cost of Funds 7.25 6.54
Yield on Advance 10.05 8.98
Yield on Fund 8.84 8.03
Yield on Investments 7.75 7.57
Return on Equity [13.54] [13.50]
Earning Per Share (Rs) [15.50] [11.89]
Book Value (Rs) 87.98 65.42

5. During the year 2016-17 Bank opened 30 new Branches and Branch network of theBank increased to 1874 (including Satellite Offices). All the branches of the Bank arecovered under CBS.

6. During the year 2016-17 Bank has established 21 new E-Smart centers taking thetotal to 95. In E-Smart centers customers can deposit cash deposit cheques withdrawcash get their passbooks printed and access their account through internet bankingfacility on 24*7 basis.

7. During the year 2016-17 Bank installed 5300 POS and has launched a new mobilebanking channel i.e. Unified payment Interface (UPI) promoted by NPCI.

8. Dividend

Board of Directors has not recommended Dividend for the FY 2016-17.

9. Net Worth and CRAR

9.1 Net Worth of the Bank stood at Rs 4842.92 cr as on 31st March 2017.9.2 CRAR : (in %)

Basel III
March 2016 March 2017
CRAR Tier- I Capital 8.59 9.05
CRAR Tier -II Capital 2.41 2.34
Total 11.00 11.39

10. Changes in Board of Directors

10.1 The Board of Directors of the Bank as on 31st March 2017 comprised ofChairman & Managing Director and two Executive Directors being whole-time Directorsand eight other directors as under: One Government of India Nominee Director One ReserveBank of India Nominee Director; One Workmen Employee Director Two Part-time Non-officialDirector appointed by Govt. of India; and Three Shareholders’ elected Directors;10.2 Shri V Vasanthan Reserve Bank of India Nominee Director appointed underClause (c) Sub-Section (3) of Section 9 of the Banking Companies (Acquisition andTransfer of Undertakings) Act 1970/1980 read with sub-clause (1) of clause 3 ofNationalized Banks (Management & Miscellaneous Provisions) Scheme 1970/1980 ceasedto be a Director of the Bank w.e.f. May 03 2016. The Board of Directors places on recordtheir appreciation for valuable guidance provided by Shri V Vasanthan during histenure as Director on the Board of the Bank.

10.3 In terms of Notification No. F.No.6/3/2011-BO.I. dated 03rd May 2016received from Government of India Ministry of Finance Department of Financial Services ShriS C Murmu has been nominated as Reserve Bank of India Nominee Director on the Board ofthe Bank under Clause (c) Sub-Section (3) of Section 9 of the Banking Companies(Acquisition and Transfer of Undertakings) Act 1970/1980 read with sub-clause (1) ofclause 3 of Nationalized Banks (Management & Miscellaneous Provisions) Scheme1970/1980 in place of Shri V Vasanthan.

10.4 Shri A Subramanya appointed as part-time non-official Director on theBoard of the Bank under sub-section 3 (h) and (3-A) of Section 9 of The Banking Companies(Acquisition and Transfer of Undertakings) Act 1970/1980 read with sub-clause (1) ofclause 3 of the Nationalised Banks (Management and Miscellaneous Provisions)

Scheme 1970/1980 ceased to be a Director of the Bank w.e.f. 05th December2016 on completion of his tenure. The Board of Directors places on record its appreciationfor valuable guidance provided by Shri A Subramanya during his tenure as Directoron the Board of the Bank.

11. Directors’ Responsibility Statement

The Directors in preparation of the annual accounts for the year ended March 31 2017confirm the following: i. That in the preparation of the annual accounts the applicablestandards have been followed along with proper explanation relating to materialdepartures. ii. That they have selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent as to give atrue and fair view of the state of affairs of the Bank at the end of the financial yearand of the profit or loss of the Bank during the period. iii. That they have taken properand sufficient care for the maintenance of adequate accounting records in accordance withthe provisions of applicable laws governing banks in India for preventing and detectingfrauds and other irregularities. iv. That they have prepared the annual accounts on agoing concern basis.

12. A cknowledgments

12.1 The Board of Directors expresses its patronage and sincere thanks to theBank’s valued customers shareholders and well-wishers for their valuablecontribution towards the progress of the Bank and seek their continued support andco-operation in future.

12.2 The Board of Directors acknowledges with gratitude the timely advice valuableguidance and support received from Government of India and Reserve Bank of India &other regulators.

12.3 The Board of Directors is also thankful to the Financial Institutions / Banks andCorrespondents for their cooperation and support to the Bank.

12.4 The Board of Directors wish to place on record the deep appreciation of thevaluable contribution made by the staff at all levels for the progress achieved inBank’s business. The Directors look forward to their continued cooperation in fasterbusiness development and progress of the Bank.

For and on behalf of Board of Directors
Place: Mumbai (Ashwani Kumar)
Date: 19th May 2017 Chairman & Managing Director