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Dena Bank tumbles after RBI initiates prompt corrective action

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Capital Market
Last Updated : May 14 2018 | 10:04 AM IST

Dena Bank fell 7.05% to Rs 17.15 at 9:50 IST on BSE after the central bank initiated prompt corrective action against the public sector lender.

The announcement after market hours on Friday, 11 May 2018.

Meanwhile, the S&P BSE Sensex was up 52.88 points, or 0.15% to 35,588.67.

On the BSE, 2.16 lakh shares were traded in the counter so far compared with average daily volumes of 1.28 lakh shares in the past two weeks. The stock had hit a high of Rs 18.30 so far during the day. The stock had hit a low of Rs 16.15 so far during the day, which is also 52-week low for the counter. The stock hit a 52-week high of Rs 41.45 on 12 May 2017.

The Reserve Bank has initiated prompt corrective action against public sector lender Dena Bank in view of high non-performing loans, restricting the bank from giving fresh credit and new hiring.

Dena Bank reported net loss of Rs 1225.42 crore in Q4 March 2018 as against net loss of Rs 575.26 crore in Q4 March 2017. Total income declined 8.48% to Rs 2390.68 crore in Q4 March 2018 over Q4 March 2017. The result was announced at the fag end of the trading session on Friday, 11 May 2018.

The bank's gross non-performing assets (NPAs) stood at Rs 16361.44 crore as on 31 March 2018 as against Rs 14168.78 crore as on 31 December 2017 and Rs 12618.73 crore as on 31 March 2017.

The ratio of gross NPAs to gross advances stood at 22.04% as on 31 March 2018 as against 19.56% as on 31 December 2017 and 16.27% as on 31 March 2017.

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The ratio of net NPAs to net advances stood at 11.95% as on 31 March 2018 as against 11.52% as on 31 December 2017 and 10.66% as on 31 March 2017.

Provisions and contingencies surged 104.86% to Rs 1991.30 crore in Q4 March 2018 over Q4 March 2017.

Dena Bank is a public sector bank. The Government of India held 80.74% stake in the bank as on 31 March 2018.

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First Published: May 14 2018 | 9:51 AM IST

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