The Hindu Business Line : Dena Bank Q4 net down 66%

Mr P.L. Gairola (right), Chairman & Managing Director, Dena Bank, with Mr U.S. Kohli, Executive Director, addressing a press conference to announce the bank's results in Mumbai on Wednesday. - Shashi Ashiwal

Mumbai April 25 Dena Bank said its net profit for the fourth quarter ended March 31, 2007, dropped by 66.43 per cent.

Net profit for the quarter amounted to Rs 43.80 crore, down from Rs 130.47 crore in the corresponding year-ago quarter. "The drop in the net profit was mainly due to the increase in provisions. We also wanted to clear up the balance sheet as far as NPAs are concerned," said Mr P.L.Gairola, Chairman and Managing Director, at a news conference on Wednesday.

"The net profit was also higher in the corresponding quarter of last year due to an extraordinary income of around Rs 57 crore through sale of assets," he added.

The bank has announced an eight per cent dividend for the financial year 2006-07.

The net interest income for the fourth quarter rose by 45.19 per cent to Rs 232.91 crore (Rs 160.42 crore).

The total income was up by 18 per cent, at Rs 684.23 crore, against Rs 579.88 crore.

The net profit for the year ended March 31, 2007 grew by 176.15 per cent to Rs 201.56 crore, compared to Rs 72.99 crore in the previous fiscal. Total income for the fiscal rose 14.14 per cent to Rs 2,510.04 crore (Rs 2,199.16 crore). Net interest income for the year went up 18.36 per cent to Rs 855.36 crore (Rs 722.68 crore).

Deposits rise 17%

Deposits grew by 17.22 per cent to Rs 27,690 crore for the fiscal ended March 31, 2007, against Rs 23,623 crore last year.

The gross advances for the year were up 26.68 per cent at Rs 18,683 crore, against Rs 14,748 crore last year. The net interest margin for the year improved to 3 per cent (2.95 per cent). The cost of deposits increased to 4.89 per cent (4.58 per cent). The capital adequacy ratio of the bank stands at 11.52 per cent, against 10.62 per cent a year ago.