Dena Bank drops after poor Q3 numbers

Dena Bank lost 2.48% to Rs 53.05 at 15:23 IST on BSE after net profit declined 67.2% to Rs 67.80 crore on 10.6% growth in total income to Rs 2662.80 crore in Q3 December 2013 over Q3 December 2012.

The Q3 result was announced on Saturday, 8 February 2014.

Meanwhile, the S&P BSE Sensex was down 35.38 points or 0.17% at 20,341.18.

On BSE, so far 2.45 lakh shares were traded in the counter as against average daily volume of 6 lakh shares in the past one quarter.

The stock hit a high of Rs 53.90 and a low of Rs 52.75 so far during the day. The stock had hit a 52-week low of Rs 41.85 on 28 August 2013. The stock had hit a 52-week high of Rs 106.65 on 7 February 2013.

The stock had underperformed the market over the past one month till 7 February 2014, sliding 11.4% compared with the Sensex's 1.53% fall. The scrip had also underperformed the market in past one quarter, declining 7.72% as against Sensex's 2.14% fall.

The state-run bank has equity capital of Rs 468.64 crore. Face value per share is Rs 10.

Dena Bank's provisions and contingencies jumped 144.2% to Rs 382.43 crore in Q3 December 2013 over Q3 December 2012. Provision coverage ratio works out to 63.92% as on 31 December 2013.

The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 2.96% as on 31 December 2013 as against 3% as on 30 September 2013 and 2.09% as on 31 December 2012. The ratio of net NPAs to net advances stood at 2% as on 31 December 2013 as against 2.02% as on 30 September 2013 and 1.31% as on 31 December 2012.

Dena Bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.61% as on 31 December 2013 as against 10.21% as on 30 September 2013.

The RBI vide its circular dated 20 December 2013 has advised banks to create Deferred Tax Liability (DTL) on the amount outstanding in Special Reserve, as a matter of prudence, in accordance with these RBI guidelines, during the quarter ended 31 December 2013 and bank has created a DTL of Rs 66.96 crore on Special Reserve outstanding at 31 March 2013 by reducing the reserves, Dena Bank said.

The Government of India (GoI) holds 66.57% stake in Dena Bank (as per the shareholding pattern as on 31 December 2013).

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