Dena Bank net profit increases 11.6%

CORPORATE SCORECARD

Public sector lender, Dena Bank reported a 11.59 per cent increase in net profit to Rs 102.83 crore for the quarter ended September 30, 2008 compared to Rs 92.15 crore registered in the corresponding period last year, on the account of higher net interest income. Net interest income of the bank was up by 22.99 per cent to Rs 254.26 crore from Rs 206.73 crore reported in the same period a year ago. However, the operating profit of the bank for the quarter under review, declined by 7.18 per cent to Rs 149.22 crore from Rs 160.76 crore registered in the same period last year.

 

“This was largely due to loss on sale of investments and adhoc provision of Rs 20 crore for proposed wage revision,” explained P L Gairola, Chairman and Managing Director, Dena Bank. Similarly, in the same period non-interest income of the bank was down by 25.85 per cent to Rs 85.21 crore from Rs 114.91 crore, while net interest margin of the bank dipped to 2.88 per cent from 2.95 per cent. Total business of the bank increased by 21.11 per cent to Rs 60,268 crore compared to Rs 49,763 crore, reported in the corresponding period last year.