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Dena Bank.

BSE: 532121 Sector: Financials
NSE: DENABANK ISIN Code: INE077A01010
BSE LIVE 11:47 | 17 Aug 31.60 0.40
(1.28%)
OPEN

31.45

HIGH

31.95

LOW

31.35

NSE 11:34 | 17 Aug 31.50 0.25
(0.80%)
OPEN

31.45

HIGH

32.00

LOW

31.30

OPEN 31.45
PREVIOUS CLOSE 31.20
VOLUME 58416
52-Week high 50.00
52-Week low 30.50
P/E
Mkt Cap.(Rs cr) 3,139
Buy Price 31.50
Buy Qty 599.00
Sell Price 31.60
Sell Qty 1571.00
OPEN 31.45
CLOSE 31.20
VOLUME 58416
52-Week high 50.00
52-Week low 30.50
P/E
Mkt Cap.(Rs cr) 3,139
Buy Price 31.50
Buy Qty 599.00
Sell Price 31.60
Sell Qty 1571.00

Dena Bank. (DENABANK) - Director Report

Company director report

2015-2016

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 312016.

2. Performance Highlights

2.1 During the current financial year the aggregate Business Mix (Deposits +Advances) of the Bank reached ' 203242 cr as on 31st March 2016. The totalBusiness Mix of the Bank increased by ' 6677 cr registering a growth of 3.41% on year onyear.

2.2 Total Deposit of the Bank increased from ' 115936 cr as on 31stMarch 2015 to ' 117431 cr as on 31st March 2016 registering a growth of1.29%.

2.3 Savings Bank Deposits of the Bank increased from ' 25706 cr as on 31stMarch 2015 to ' 28067 cr as on 31st March 2016 registering a growth of9.18%.

2.4 CASA Deposits of the Bank increased from ' 32121 cr as on 31st March2015 to ' 34369 cr as on 31st March 2016 registering a growth of 7.00%.

2.5 Advances of the Bank increased by ' 5182 cr from ' 80629 cr as on 31stMarch 2015 to ' 85811 cr as on 31st March 2016 registering a growth of6.43%.

2.6 $ Priority Sector Advances increased by '5663 cr from ' 28454 cr as on 31stMarch 2015 to ' 34117 cr as on 31st March 2016 registering a growth of19.90% and constituted 40.23% of Adjusted Net Bank Credit (ANBC) surpassing theregulatory minimum of 40%.

2.7 $ Agricultural Advances increased by ' 4046 cr from ' 11866 cr as on 31stMarch 2015 to ' 15912 cr as on 31st March 2016 registering a growth of34.10% and constituted 18.77% of Adjusted Net Bank Credit (ANBC) surpassing theregulatory minimum of 18%.

2.8 Cost of Deposits reduced from 7.66% as on 31st March 2015 to 7.20%as on 31st March 2016 and as a result Interest Expenses on Deposits reduced by' 272 cr from ' 7989 cr as on 31st March 2015 to ' 7717 cr as on 31stMarch 2016.

2.9 As on 31st March 2016 the Capital to Risk (Weighted) Asset Ratio(CRAR) under Basel III improved and stood at 11.00% as compared to 10.93% during 31stMarch 2015 against the requirement of 9.625%.

2.10 The Tier I capital ratio of the Bank increased from 7.67% as on 31st March2015 to 8.59% as on 31st March 2016 as against the requirement of 7.625%.

2.11 Cash recovery in NPA accounts increased from ' 595 cr of FY 201415 to ' 728 crin FY 2015-16.

2.12 Recovery in Written-Off accounts increased from ' 34 cr for FY 201415 to ' 73cr for FY 2015-16.

2.13 Bank earned non-interest income of ' 32.26 cr from Aadhar Enrollment.

$ Including RIDF & IBPC

2.14 Key Statistics

Particulars

As of 31st March

2015 2016
Deposits 115936 117431
Advances 80629 85811
Investments 36624* 35345
Priority Sector 28454 34117
Agriculture 11866 15912
Retail 10910 12053
MSME 15256 13983
Gross NPA 4393 8560
Net NPA 3014 5230
% of Gross NPA to Gross Advance 5.45 9.98
% of Net NPA to Net Advance 3.82 6.35

* includes RIDF of ' 3737 cr

3. Income Analysis

The financial performance of the Bank for the year 2015-2016 is summarized below:

Particulars

As of 31st March

2015 2016
Operating Profit 1330.27 925.30
Interest Income 10763.49 10645.73
Interest Expenditure 8315.62 8168.99
Net Interest Income 2447.87 2476.75
Non-Interest Income 721.33 716.80
Provisions and contingencies 1064.80 1860.62
Profit before Tax 67.66* [1550.89]
Provision for Taxes [197.82*] [615.57]
Net Profit 265.48 [935.32]

*including wealth tax

4. Key Financial Indicators

Particulars

As of 31st March

2015 2016
Net Interest Margin 2.25 2.16
Return on Assets 0.22 [0.75]
Cost to Income Ratio 58.02 71.03
Provision Coverage Ratio 52.97 52.79
Cost of Deposit 7.66 7.20
Cost of Funds 7.71 7.25
Yield on Advance 10.89 10.05
Yield on Fund 9.42 8.84
Yield on Investments 7.80 7.75
Return on Equity 4.08 [13.54]
Earning Per Share (') 4.94 [15.50]
Book Value (') 119.84 87.98

5. During the year 2015-16 Bank opened 107 new Branches and Branch network of the Bankincreased to 1846 (including Satellite Offices). All the branches of the Bank are coveredunder CBS.

6. During the year 2015-16 Bank established 74 E-Smart centers. In E-Smart centerscustomers can deposit cash deposit cheques withdraw cash get their passbooks printedand access their account through internet banking facility on 24*7 basis. Bank hastargeted to establish 100 E-Smart Centres.

7. Dividend

Board of Directors have not recommended Dividend for the FY 2015-16.

8. Net Worth and CRAR

8.1 Net Worth of the Bank stood at ' 4937.70 cr as on 31st March 2016.

8.2 CRAR :

Basel III

March 2015 March 2016
CRAR Tier- I Capital 7.67 8.59
CRAR Tier -II Capital 3.26 2.41
Total 10.93 11.00

9. Changes in Board of Directors

9.1 The Board of Directors of the Bank as on 31st March 2016 comprised ofChairman & Managing Director and two Executive Directors being whole-time Directorsand nine other directors as under:

• One Government of India Nominee Director

• One Reserve Bank of India Nominee Director;

• One Workmen Employee Director

• Three Directors appointed by Govt. of India and

• Three Shareholders' elected Directors;

9.2 In terms of Notification No. F.No.4/6/2015-BO.I. dated 02nd November

2015 received from Government of India Ministry of Finance Department of FinancialServices Shri Ravi Krishan Takkar has been elevated & appointed as MD & CEO ofUCO Bank under Clause (a) 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 clause 6 and sub-clause (1) of clause 8 of Nationalized Banks (Management &Miscellaneous Provisions) Scheme 1970/1980. The Board of Directors placed on record theirappreciation for valuable contribution made by Shri Ravi Krishan Takkar during his tenureas Executive Director on the Board of the Bank.

9.3 In terms of Notification No. F.No.4/5/2015-BO.I. dated 22nd January

2016 received from Government of India Ministry of Finance Department of FinancialServices Shri Ramesh S Singh has been appointed as Executive Director on the Board of theBank w.e.f. 22nd January 2016 for a period of three years or until further orderswhichever is earlier under Clause (a) Sub-Section (3) of Section 9 of the BankingCompanies (Acquisition and Transfer of Undertakings) Act 1970/1980 read with sub-clause(1) of clause 3 and sub-clause (1) of clause 8 of Nationalized Banks (Management &Miscellaneous Provisions) Scheme 1970/1980.

9.4 Ms Anna Roy Government Nominee Director appointed under Clause (b) Sub-Section(3) of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act1970/1980 read with sub-clause (1) of clause 3 of Nationalized Banks (Management &Miscellaneous Provisions) Scheme 1970/1980 ceased to be a Director of the Bank w.e.f.September 09 2015. The Board of Directors placed on record their appreciation forvaluable guidance provided by Ms Anna Roy during her tenure as Director on the Board ofthe Bank.

9.5 In terms of Notification No.F.No.7/2/2012-BO.I dated 15th January 2016 receivedfrom Government of India Ministry of Finance Department of Financial Services ShriAshok Kumar Singh has been appointed as Government Nominee Director on the Board of theBank until further orders under Clause (b) of Sub-Section (3) of Section 9 of The BankingCompanies (Acquisition and Transfer of Undertakings) Act 1970/1980 read with sub-clause(1) of clause 3 of The Nationalized Banks (Management and Miscellaneous Provisions)Scheme 1970/1980 in place of Ms Anna Roy.

9.6 Shri Mohan Lal Gupta Officer Employee Director appointed under Clause (f) ofSub-section (3) of Section 9 of the Banking Companies (Acquisition and Transfer ofUndertakings) Act 1970/1980 read with Sub-Clause (1) & (2) of Clause 9 of TheNationalized Banks (Management and Miscellaneous Provisions) Scheme 1970/1980 w.e.f.01st January 2013 ceased to be a Director of the Bank from 1st January 2016 oncompletion of his tenure. The Board of Directors placed on record their appreciation forvaluable guidance provided by Shri Mohan Lal Gupta during his tenure as Director on theBoard of the Bank.

9.7 In terms of Notification No.F.No.6/19/2015-BO.I dated 28th January 2016 receivedfrom Government of India Ministry of Finance Department of Financial Services Shri AmitChatterjee has been appointed as Part-time Non-official Director on the Board of Directorsof the Bank for a period of three years from the date of notification of his appointmentor until further orders whichever is earliest under sub-section 3 (h) and (3-A) ofSection 9 of The Banking Companies (Acquisition and Transfer of Undertakings) Act1970/1980 read with sub-clause (1) of clause 3 of The Nationalized Banks (Management andMiscellaneous Provisions) Schemes 1970/1980.

9.8 In terms of Notification No.F.No.6/18/2015-BO.I dated 28th January 2016 receivedfrom Government of India Ministry of Finance Department of Financial Services Shri GGopalakrishna has been appointed as Part-time Non-official Director on the Board ofDirectors of the Bank for a period of three years from the date of notification of hisappointment or until further orders whichever is earliest 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) of clause 3 of The Nationalized Banks (Managementand Miscellaneous Provisions) Schemes 1970/1980.

10 Directors' Responsibility Statement

The Directors in preparation of the annual accounts for the year ended March 312016confirm the following:

i. That in the preparation of the annual accounts the applicable standards have beenfollowed along with proper explanation relating to material departures.

ii. That they have selected such accounting policies and applied them consistently andmade judgments and estimates that are reasonable and prudent as to give a true and fairview of the state of affairs of the Bank at the end of the financial year and of theprofit or loss of the Bank during the period.

iii. That they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of applicable laws governing banks inIndia for preventing and detecting frauds and other irregularities.

iv. That they have prepared the annual accounts on a going concern basis.

11. Acknowledgments

11.1 The Board of Directors expresses its patronage and sincere thanks to theBank's valued customers shareholders and well-wishers for their valuable contributiontowards the progress of the Bank and seek their continued support and co-operation infuture.

11.2 The Board of Directors acknowledges with gratitude the timely advicevaluable guidance and support received from Government of India and Reserve Bank of India.

11.3 The Board of Directors is also thankful to the Financial Institutions / Banksand Correspondents for their cooperation and support to the Bank.

11.4 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 : 1st June 2016 Chairman & Managing Director