Dena 9-Mth Net Profit At Rs 133.94 Cr

Dena Bank has posted a net profit of Rs 133.94 crore at the end of the third quarter of 1997-98 before making provisions. In a press release, the bank has indicated that at the end of this financial year its profit would have increased by 30 per cent.

The bank had posted a net profit of Rs 61.72 crore at the end of the first half of the current financial year after making a provision of Rs 65.83 crore.

The gross non-performing assets (NPAs) of Dena Bank increased from Rs 555 crore (12.4 per cent of advances) in March 1997 to Rs 680 crore (13.2 per cent of advances) by December. The net NPA to net advances ratio has gone up from 6.63 per cent to 8.10 per cent during the period. Despite this the bank is eligible for the autonomy package announced by the government.

 

During the current financial year deposits have grown by 12.8 per cent to Rs 8,871 crore. Advances have increased by 18.2 per cent to Rs 4,781 crore. However, if one includes investments in shares, bonds, debentures and other debt instruments, advances have grown by a healthy 25.2 per cent to Rs 5,979 crore.

The investments portfolio has increased by 17.5 per cent to Rs 4,371 crore.

The bank through its concerted efforts has enhanced the level of priority sector advances. The percentage of priority sector advances to net credit has crossed the 40 per cent stipulation.

Dena Bank has revised the interest rate on deposits. Of late due to exigencies of the situation the interest rates on deposits and advances has been enhanced. But though we have revised interest rates on deposits by more than 100 basis points, which may put pressure on our spread ,we have retained our spread on advances. In spite of this, we would close the year with a 30 per cent growth in profits, the release added.