Interest income lifts Dena Bank Q2 net 24%

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Nupur Mitra, CMD.
Nupur Mitra, CMD.

Dena Bank has reported a 24 per cent increase in net profit for the quarter ended September 30 at Rs 240 crore on the back of robust growth in interest income.

The public sector lender had posted a net profit of Rs 194 crore in the year-ago period.

Net interest income (the difference between interest earned and expended) increased by 15 per cent to Rs 594 crore as against Rs 515 in the second quarter of last fiscal. Non-interest income rose by 18 per cent to Rs 134 crore (Rs 113 crore).

The percentage of net non-performing assets (NPAs) increased to 1.22 per cent from 1.15 per cent in the year-ago quarter. The capital adequacy ratio stood at 12.05 per cent (12.55 per cent).

Provisions increased by 25 per cent to Rs 197 crore (Rs 158 crore), of which, Rs 154 crore was towards NPAs. CASA (current and savings account) ratio stood at 31.86 per cent.

Total slippages during the quarter was at Rs 288 crore (Rs 156 crore in June quarter) mainly comprising of infrastructure and telecom sector.

During the quarter, the bank’s restructured assets aggregated Rs 300 crore (from Rs 319 crore in Q2 FY12).

“We expect an additional Rs 160 crore restructuring in the next quarter,” Nupur Mitra, Chairman and Managing Director, Dena Bank.

“Net interest margins declined to 2.86 per cent (from 3.22 per cent) due to rationalisation of rate of interests especially on loans to small and medium enterprises, agriculture and retail. This was done so that our accounts remain standard,” Mitra said.

The bank plans to raise Rs 1,250 crore for the next two years, she said.

The shares of the bank ended higher by 1.42 per cent to close at Rs 110.70 on the Bombay Stock Exchange.

(This article was published on November 6, 2012)
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