Provisioning takes Dena into the red

Dena Bank posted a net loss of Rs 39.20 crore for the fourth quarter ended March 31, 2005, compared with a net profit of Rs 58.39 crore in the corresponding period of the previous year.

The loss is due to a provision of Rs 81 crore on account of depreciation in the value of government securities portfolio it held and a Rs 65 crore provision towards increase in wages.

In the fourth quarter, Dena Bank conducted a transfer of government securities worth Rs 1,474 crore and took a hit of Rs 81 crore in order to provide for the dip in the value of the securities.

For the full year the bank posted a 73 per cent dip in net profit to Rs 61 crore down from Rs 230.50 crore in the previous year.

"We hope to post net profits in the coming quarter and in the coming year since there will no VRS or wage revision payment," said M V Nair, chairman & managing director, Dena Bank at a press conference held here today.

Operating profit for the year fell by 37 per cent to Rs 447.49 crore (Rs 710.59 crore).

Net interest income in Q4 jumped by 31.4 per cent to Rs 188 crore (Rs 143 crore). Profit from sale of investments dried up to Rs 7 crore (Rs 140 crore). Other income fell to Rs 70.57 crore (Rs 195.92 crore).

Total income in Q4 fell to Rs 493.07 crore (Rs 619.01 crore) and total expenditure decreased to Rs 390.16 crore (Rs 422.72 crore).

During the year, total business of the bank increased by 12.7 per cent to Rs 31,961 crore. Total deposits grew by 9.52 per cent to Rs 20,096 crore (Rs 18,349.18 crore) and the net advances increased by 20.15 per cent to Rs 11,308.59 crore.

Provisions and contingencies in the fourth quarter increased to Rs 211.71 crore (Rs 107.45 crore).

Dena Bank's share price fell by 3.75 per cent on BSE to Rs 29.55.