The net profits of the Dena Bank, which recently tapped the market with a Rs 180-crore public equity issue, has jumped to Rs 45.51 crore for the six months ended September 96 up from Rs 25.84 crore in the corresponding period last year.
The results of Dena Bank gains significance in the context of the fact it was the first bank after the State Bank to enter the market with an equity issue. The success of the public issue also saw the Bank of Baroda entering the market and getting an oversubscription.
Dena Banks six month net profit figure 1995-96 is arrived from the full years profit of Rs 51.69 crore. The return on equity (ROE) as of September 1995 was 13.17 per cent. However, if the adjusted capital base of March 1996 is taken for September 1995 also, the ROE works out to 25.4 per cent. The ROE has gone up to 31 per cent as of September 1996. The earnings per share for September 1995 was Rs 1.32 and on an adjusted capital base of March 1996, it works out to Rs 2.54. This has gone up to Rs 3.10 as of September 1996.
The banks deposits rose from Rs 6,476 crore in March 1996 to Rs 7,010 crore in September 1996, registering a growth of 8.2 per cent. The banking industry deposit growth during the corresponding period was 6.4 per cent. Further, the bank registered a positive growth in advances as against a negative growth for the banking industry.
Investments of Dena Bank increased by Rs 410 crore during the first six months of 1996-97. The bank invested its funds from deposit accretion in various instruments including PSU bonds and debentures of blue ship companies.
Interest income of the bank has gone up by 26.9 per cent for the half year ended September 1996.
The bank also raised bonds of Rs 92.27 crore through private placement in February 1996. Further with the recent reduction in CRR by one per cent during January 1997, an additional amount of Rs 75 crore would be released for the bank.
