State-run Dena Bank today reported an improvement with the net loss
reducing to Rs 132.65 crore in the quarter ended June 30, helped by decline in
NPAs and better net interest margin.
The bank had reported
a loss of Rs 279.35 crore in the same quarter last year."Our provisions
on NPAs have come down which resulted in reduction in loss this quarter. Last
year in the June quarter, our NPAs provisioning was Rs 598 crore which has come
down to Rs 434.58 crore this year," chairman and managing director Ashwani
Kumar told reporters here.
The bank's net
interest margins improved to 2.44 per cent in the first quarter from 2.02 per
cent on a decrease in cost of deposit and increase is yield on advances.
Cost of deposit came
down by 92 basis points to 5.87 per cent from 6.79 per cent.The total deposits got
reduced by 4.61 per cent by shedding bulk deposits, while the advances were
down 7.78 per cent. The credit-deposit ratio stood at 70.07 per cent.
In the quarter under
review, the PSU lender received interest on income tax refund to the tune to Rs
70.53 crore which helped the net interest income to improve, Kumar said.
Net interest income
rose to Rs 675.07 crore from Rs 620.88 crore a year ago.Gross non-performing
assets increased to 17.37 per cent from 11.88 per cent, while net NPAs stood at
11.22 per cent as against 7.65 per cent.
Fresh slippages stood
at Rs 954 crore, of which Rs 466 crore were from large accounts with exposure
over Rs 10 crore. Kumar said the bank
has exposure to nine accounts out of the 12 accounts which the Reserve Bank has
asked banks to refer to NCLT under the Insolvency and Bankruptcy Code.
The bank's total
exposure to nine accounts is Rs 2,660 crore. It will have to make an additional
provisioning of Rs 272 crore on these nine accounts. The bank is looking to
raise Rs 500 crore through qualified institutional placement (QIP).
"We are in the
process of appointing merchant bankers and in next 10 days we hope to appoint
them. By September, we hope to do our QIP," Kumar said.
The
bank may also seek Rs 1,000 crore capital from the government this year.
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