To replace corporate loan book with retail; aim to bring down slippages: Dena Bank

The net loss run rate for Dena Bank continued in the second quarter of FY18. It has reported net loss of Rs 2171 crore in the last eight quarters.

The gross non-performing assets (NPAs) for the quarter came in at Rs 13,201.3 crore versus Rs 12,994.2 crore reported in quarter one FY18. Provisions for the quarter stood at Rs 73.7 crore versus Rs 522.5 crore quarter on quarter. Net NPA came in at Rs 7511 crore versus Rs 7797.2 crore in Q1FY18.

The year on year net interest income was down 10.6 percent at Rs 600.7 crore versus Rs 671.5 crore.  The provision coverage ratio in the quarter improved to 54.3 percent versus 51.7 percent YoY.

Ashwani Kumar, Chairman & Managing Director of Dena Bank said slippages in Q2 came in at Rs 875 crore which were less than the earlier quarter and much less than the corresponding quarter last fiscal of around Rs 1700 crore. One large account has slipped of about Rs 200 crore and rest all are below Rs 50 crore.

The bank is focused on bringing down slippages going forward.
Talking about the weak loan book, he said the focus was on re-balancing loans by replacing corporate book with retail book.

On recapitalisation, he said the bank has worked out and submitted their requirement to the government both for the risk and growth capital. The recapitalisation plans is for two years.