The Hindu Business Line : Dena Bank Q4 profit falls to Rs 58.39 cr

HIGHER provisions during the last fiscal have led Dena Bank Ltd to report a lower net profit for the fourth quarter, even as the bank's net profit jumped by 102 per cent for the financial year ended March 31, 2004.

The bank's net profit for the fourth quarter ended March 31, 2004, was Rs 58.39 crore against Rs 77.16 crore in the corresponding period the previous year.

The bank has made total provisions of Rs 358.89 crore for the financial year ended March 31, 2004 compared to Rs 329.55 crore made the previous year.

In the fourth quarter, a floating provision for NPAs to the tune of Rs 50 crore was made along with a provision of Rs 25 crore for standard assets.

Total income of the bank was lower at Rs 619.01 crore (Rs 665.91 crore) in the fourth quarter. Treasury income rose to Rs 441 crore (Rs 241 crore) while cash recoveries on NPAs were at Rs 227.5 crore (Rs 174.02 crore). Total expenditure was lower at Rs 422.72 crore (Rs 422.28).

Dena Bank's net profit surged by 102 per cent to Rs 230.50 crore for the fiscal ended March 31, 2004, compared to Rs 114.19 crore posted in the previous financial year.

``We have not declared a dividend for FY-04 as we still have accumulated losses of Rs 217 crore as on end-March. But these losses are expected to be wiped out by the end of this year,'' said Dr Anil Khandelwal, Chairman and Managing Director, Dena Bank.

The bank's total deposits rose by 11.27 per cent at Rs 18,350 crore (16,491 crore) while gross advances grew to Rs 10,011 crore (Rs 9,049 crore). The cost of deposits was lower at 5.78 per cent (6.65 per cent). Capital adequacy ratio was enhanced to 9.48 per cent (6.02 per cent).

The ratio of net NPAs to net advances was at 9.40 per cent (11.83 per cent). Net NPAs of the bank declined to Rs 884.35 crore (Rs 997.28 crore).

Describing the bank's plans to go in for a second initial public offering of Rs 80 crore at face value, Dr Khandelwal said the bank was waiting for RBI's nod.

The IPO is expected to hit the market after June. It would also have a premium component, he said.

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