The Hindu Business Line : Retail thrust lifts Dena Bank Q3 net

DENA BANK reported a net profit of Rs 83.18 crore for the quarter ended December 31, 2005, up 263 per cent from Rs 22.92 crore in the corresponding quarter last year. The surge in profits is due to growth in retail credit, agriculture financing and SME lending, said Mr M.V. Nair, Chairman and Managing Director of the bank.

The total income was Rs 602.27 crore (Rs 477.78 crore). While the net interest income stood at Rs 203.58 crore (Rs 170.14 crore), other income was Rs 142.51 crore (Rs 53.73 crore).

The total expenditure decreased to Rs 399.26 crore (412.06 crore). The capital adequacy ratio (CAR) was 9.82 per cent (10.04 per cent).

Mr Nair said "After making provision for credit and market risk as per the Basel-II norms, we can maintain CAR above 9 per cent."

As the government holding in Dena Bank is 51.19 per cent, the bank is waiting for the RBI to come out with guidelines on hybrid capital. It is also planning to sell its NPAs for additional funds to meet the credit demand. "We will appoint either Ernst & Young or PricewaterhouseCoopers as advisor for the NPA sale," Mr Nair said.

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