Financial Daily from THE HINDU group of publications
Wednesday, Jun 05, 2002
Money & Banking
Public Sector Banks
Corporate Results - Public Sector Banks
Dena Bank turns around; nets Rs 11.36 cr
Mr A.G. Joshi, Chairman and Managing Director, Dena Bank (right), and Mr S.C.Vohra, Executive Director, at a press conference in Mumbai on Tuesday.
MUMBAI, June 4
DENA Bank has made a turnaround in the year ending March 31, 2002 with a net profit of Rs 11.36 crore as against a net loss of Rs 266.12 crore in the previous year.
The bank attributed the turnaround to the strategic revival plan implemented during 2001-02 and the beneficial impact of market conditions.
The operating profit increased to Rs 335.39 crore in 2001-02 from Rs 76.83 crore, an increase of 336.54 per cent.
"Our aim is to make this profit through our strategic revival plan a sustainable one,'' said Mr A.G. Joshi, Chairman and Managing Director, Dena Bank.
The bank's total business crossed Rs 23,500 crore with deposits at Rs 15,354.69 crore and gross advances at Rs 8,277.74 crore.
Interest income slipped to Rs 1,708.40 crore this year from Rs 1,716.38 crore last year.
The profit on sale of securities increased by Rs 164.23 crore this year. The bank's investment portfolio grew by 12.15 per cent to reach Rs 7,723.71 crore from Rs 6,886.68 crore.
The operating expenses have reduced substantially to Rs 460.40 crore this year from Rs 579.89 crore last year, a reduction of 20.61 per cent.
Total provisions for this year were Rs 324.03 crore (Rs 334.23 crore).
The cost of deposits reduced by 51 basis points to 7.23 per cent this year from 7.74 per cent last year.
Gross advances grew at 3.03 per cent and net advances of the bank increased by 7.44 per cent.
Other income of the bank has increased to Rs 352.96 crore this year from Rs 199.08 crore last year. Total income has increased to Rs 2,061.36 crore this year (Rs 1,915.46 crore).
Total expenditure stood at Rs 1,725.97 crore this year against Rs 1,847.35 crore last year.
The capital adequacy ratio has decreased to 7.64 per cent this year from 7.73 per cent last year. The bank expects to take its capital adequacy ratio to nine per cent.
The bank's NPAs stand at Rs 1,996.02 crore in March 2002 as against Rs 1,928.26 crore last year. "There has been fresh slippage during 2001-02. We have been affected by the recession in the economy. Therefore, our targets in reduction of NPAs, as per the revival plan has not been achieved,'' said Mr Joshi.
"This year, our focus will be management of NPAs,'' said Mr S.C. Vohra, Executive Director. A board level committee is in place to manage the NPAs of the bank. The per cent of provisions to gross NPAs has increased to 35.76 per cent this year from 30.65 per cent last year.
Dena Bank has launched a new scheme called Dena Shakti for the empowerment of women.
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