Dena Bank Bounces Back With Rs 25 Cr Net

Dena Bank has reported a net profit of Rs 25.04 crore in the third quarter ended December 31, 2002, as against a net loss of Rs 1.09 crore in the corresponding quarter in the previous financial year.

In the nine months ended December 31, 2002, the bank has posted a net profit of Rs 37.03 crore as against a net loss of Rs 26.10 crore in the year-ago period.

A G Joshi, chairman and managing director, attributed the profitability to the bank containing slippages at Rs 173 crore in the reporting nine months period as against Rs 496 crore in the whole of last year.

 

In the reporting quarter while interest earned is marginally lower at Rs 422.86 crore as against Rs 427.55 crore in Q3 of 2001-02, other income (which includes profit from sale of investments) is up by 21.19 per cent at Rs 109.22 crore (Rs 90.12 crore in Q3 of 2001-02).

Interest expended declined by 4.76 per cent to Rs 306.19 crore (Rs 321.51 crore) and operating expenses edged up by 6.11 per cent to Rs 121.04 crore (Rs 114.07 crore).

Other provisions and contingencies is lower at Rs 62 crore (Rs 82.68 crore) and provision for taxes is sharply higher at Rs 17.81 crore (Rs 50 lakh).

Capital adequacy ratio has improved to 7.85 per cent as of December-end 2002 as against 6.90 per cent in the corresponding quarter last year.

When asked if the bank would seek recapitalisation from the Centre, Joshi said that the bank will require around Rs 250 crore to reach the stipulated CAR of nine per cent. However, the bank is seeking to reach this parameter on its own steam, he added.

Gross NPAs have declined from Rs 1996.02 crore as of March-end 2002 to Rs 1758.75 crore as of December-end 2002.

In the reporting Q3 gross advances rose by Rs 103 crore over the previous quarter to Rs 8498 crore and deposits increased by Rs 536.43 crore to Rs 16469.43 crore.