Dena Bank Q2 loss widens to Rs 185 crore, asset quality worsens

Bank's asset quality worsened at the end of September quarter of 2017-18 with the NPAs hitting 17% of gross advances

Public sector Dena Bank's net loss more than quadrupled to Rs 185.02 crore during the second quarter ended September.

There was a net loss of Rs 44.32 crore on bank's balance sheet during the July-September quarter of 2016-17.

As per directions for initiating Insolvency Process- Provisioning Norms, in respect of nine borrowal accounts covered under provisions of IBC, the bank was required to make additional provision of Rs 278.82 crore to be proportionately spread over three quarters starting from the second quarter, i.e. September 2017 in order to make required provision by March 2018, the bank said in a regulatory filing.

"Accordingly, additional provision of Rs 92.94 crore has been made during the quarter, leaving a balance provision of Rs 185.88 crore to be proportionately spread over the remaining two quarters till March 2018," it said.

Bank's asset quality worsened at the end of September quarter of 2017-18 with the gross non-performing assets (NPAs) hitting 17.23 per cent of the gross advances by September 30, 2017, up from 13.79 per cent at end-September 2016.

Likewise, net NPAs rose to 10.61 per cent of net advances from 8.93 per cent year ago comparable period.

In value terms, gross NPAs were Rs 13,201.27 crore against Rs 10,824.50 crore from Rs 7,510.97 crore from Rs 6,623 crore.

Thus the provisioning to cover for bad assets also increased to Rs 652.32 crore for the quarter ended September, from Rs 554.46 crore year ago same period.

Total income of Dena Bank also fell to Rs 2,608.83 crore for the quarter, as against Rs 2,914.13 crore in July- September 2016-17.

The stock of the bank today closed 1.51 per cent higher at Rs 26.85 on BSE.