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Dena Bank, which is under RBI’s Prompt Corrective Action, has now been barred from taking fresh credit exposure and also recruitment of staff.
The latest directive from the central bank was put before the board of this public sector bank at its meeting on May 11, Dena Bank said in a filing to the stock exchanges.
It may be recalled that RBI had in May last year initiated prompt corrective action against Dena Bank and imposed certain restrictions, in view of high net NPA and negative Return on Assets.
Dena Bank had on Friday reported a net loss of Rs 1,225 crore for the fourth quarter ended March 31, 2018. This loss was much wider than the net loss of Rs 575 crore recorded in the same quarter last year.
For the financial year 2017-18, Dena Bank had recorded a net loss of Rs 1,924 crore. This is the third consecutive year that the bank has posted a net loss.
Gross non performing assets (GNPAs) rose Rs 2,192 crore to Rs 16,361 crore as on end-March 2018. GNPAs increased to 22.04 per cent. Net NPAs were up 11.95 per cent at Rs 7,838.78 crore.
For 2017-18, the bank’s ROA stood at (-) 1.59 compared with (-) 0.67 a year ago.
Only on the capital front, Dena Bank is somewhat comfortable with a capital adequacy ratio of 11.09 percent and common equity tier-I capital of 8.81 percent. It has not breached any risk threshold on the capital front.
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