State-owned Dena Bank's Q4 net profit dropped 51 percent year-on-year to Rs 126 crore, dented by higher provisions that shot up 17 percent y-o-y to Rs 342 crore. Without a tax write-back, net profit would have tanked 77 percent.
State-owned Dena Bank 's fourth quarter (January March) net profit dropped 51 percent year-on-year to Rs 126 crore, dented by higher provisions that shot up 17 percent y-o-y to Rs 342 crore.
Dena Bank shares on Saturday rose almost 1 percent to close the day's special trading session at Rs 94 on NSE.
Net interest income or the difference between interest earned and paid out, fell 6 percent y-o-y to Rs 562 crore during the quarter.
"The fall was mainly due to higher provisions and contingences.....Higher provision is on non-performing assets of Rs 143 crore as against Rs 106 crore Y-o-Y and depreciation on investment at Rs 98 crore as against Rs 38 crore a year back," the bank said in a release.
A reversal of excess provision at Rs 89 crore from the earlier year (FY12) saved the lender from reporting further erosion of profit. Tax expenses, net of previous years reversal, stood at a negative of Rs 67 crore. This means, net profit without the net tax write-back would have plunged more than 77 percent to just Rs 58 crore in Q4, FY13.
Loans expanded 16 percent y-o-y to around Rs 66,000 crore. Deposits grew at a faster pace by 26 percent to Rs 77,167 crore.
Gross non-performing asset (NPA) ratio sharply rose 2.19 percent compared with 1.67 percent a year back. During the same period, net NPA ratio stood at 1.39 percent as against 1.01 percent.
For the full year (2012-13) also, the bank reported a dismal growth of just 1 percent y-o-y to Rs 810 crore. NII however put up a better show by rising 13 percent to Rs 2,383 crore.
"Bank is targeting credit growth of 16 percent and deposit growth of 18 percent. It expects to maintain NIM around 3 percent. Bank has initiated monitoring of borrowal accounts online to prevent slippages. At present, it monitoring all acounts above Rs 10 crore on daily basis," Dena Bank said.
Set email alert for
ADS BY GOOGLE
video of the day
Be careful while betting on midcaps; like Kotak: Dimensions