Dena Bank Up On Strong Fiscal Show

Dena Bank shares on Tuesday remained frozen at the 20 per cent upper limit of the circuit breaker at Rs 10.85 on the BSE on back of impressive performance.

The scrip, after easing amid fears of an Indo-Pak war, has surged in the run-up to the results.

In the last 8 trading sessions, it rose by 23.1 per cent from a recent low of Rs 7.35 on May 22 to Rs 9.05 on June 3. Dealer said, "Local mid-size brokerage houses were active on the counter on expectations that the bank is likely to seen improved performance and divestment."

Dena Bank, till recently classified as a weak bank, has reportedly recommended the divestment of the government stake's in the bank to a strategic partner, as part of its five-year revival plan.

For the fourth quarter ended March 2002, the bank posted a net profit of Rs 37.46 crore compared with a net loss of Rs 272.71 crore for the corresponding quarter last fiscal. Total income rose 15.6 per cent in to Rs 549.12 crore from Rs 474.81 crore.

For year ended March 2002, the bank posted a net profit of Rs 11.36 crore compared with a loss of Rs 266.12 crore in the previous fiscal. Total income grew by 7.6 per cent to Rs 2,061.36 crore (Rs 1,915.46 crore).

Dena Bank had recently introduced a voluntary retirement scheme (VRS), wherein about 4,000 employees have opted for of the scheme. Still the staff strength of the bank remains substantial, at about 10,000.

The bank has decided to consolidate its businesses by re-organising the branch structure. About 70 per cent of its branches are located in Gujarat, Maharashtra and Chhattisgarh.

With effect from June 1, 2002, Dena Bank has reduced its prime lending rate to 12-12.25 per cent compared with 12.25-12.5 per cent earlier.