The Hindu Business Line : Dena Bank Q2 net up 20 pc at Rs 48.6 cr

INCREASE in credit and retail income saw Dena Bank's net profit for the second quarter rise almost 20 per cent to touch Rs 48.64 crore. This is against the net profit of Rs 40.55 crore that the bank recorded a year ago.

Total income fell to Rs 514.37 crore (Rs 533.89 crore) just as net interest income increased to Rs 169.62 crore (Rs 162.03 crore).

Other income decreased to Rs 83.46 crore (Rs 91.86 crore), on account of lower profit on sale of securities.

Total expenditure was at Rs 396.4 crore, actually down from Rs 409.63 crore last year.

Capital adequacy ratio was at 9.29 per cent (10.28 per cent).

The ratio of net NPAs to total assets witnessed a significant fall to 3.92 per cent from 7.85 per cent.

Cost of deposits declined to 4.65 per cent (5.08 per cent). This was because the share of low cost deposits to total deposits increased to 44.71 per cent from 42.17 per cent.

Retail credit saw a growth of 125 per cent to Rs 1813 crore from Rs 808 crore.

For the six months ended September 30, Dena Bank posted a net loss of Rs 140.66 crore, as it had posted a net loss of Rs 189.3 crore in the first quarter of the year.

The first half of 2004-05 had seen a net profit of Rs 77.27 crore.

The bank took a hit of Rs 199.71 crore due to shifting securities from `allowed for sale' category to `held to maturity' category.

Total income increased to Rs 1,065.49 crore (Rs 1,031.93 crore).

The bank expects 20 per cent growth in deposits and 25 per cent growth in credit during the current year.

The Dena Bank share closed at Rs 31.45 on the BSE on Friday, down 2.78 per cent from the previous close of Rs 32.35.

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