Dena Bank posts Rs326-cr loss as bad loans provision rise 200%

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Press Trust of India Mumbai
Last Updated : May 16 2016 | 7:32 PM IST
State-run Dena Bank today reported a net loss of Rs 326.39 crore in the quarter to March due to increase in provisions for bad loans which soared 200 per cent to Rs 1,094 crore.
The bank had reported a net profit of Rs 55.82 crore in the same period last year. In the December quarter, the mid-sized lender had reported a net loss of Rs 662.85 crore.
"Losses are mainly due to increase in the provisions for NPAs on account of asset quality review and fresh slippages," bank's chairman and managing director Ashwani Kumar told reporters here today.
Provisions for NPAs rose 200 per cent to Rs 1,094.24 crore from Rs 365.93 crore in the year-ago quarter, while total provisions stood at Rs 560.08 crore as against Rs 321.98 crore.
For the full year, the bank reported a net loss of Rs 935.32 crore as against a net profit of Rs 265.48.
The bank's net interest margins slipped to 2.12 per cent from 2.22 per cent.

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Kumar sees some more hit on the margin going ahead due to shift to MCLR-based lending rates but expects. The NIM to marginally improve to 2.25 per cent in FY17.
Gross non-performing assets increased to 9.98 per cent from 5.45 per cent while net NPA stood at 6.35 per cent as against 3.82 per cent.
Fresh slippages in the quarter stood at Rs 1,635.89 crore out of which Rs 323 crore came from the AQR.
Cash recoveries stood at Rs 360.11 crore, while the bank upgraded Rs 179.06 crore of loans and wrote off Rs 452.70 crore during the quarter. Its total SMA and restructured portfolio rose to at Rs 12,000 crore.
"I think, except one or two accounts which may give troubles, we do not have any lumpy accounts now," Kumar said, adding the focus will on recovery going ahead.
During the year, the bank sold Rs 442 crore of bad loans to asset reconstruction companies.
Deposits increased to Rs 1,17,431 crore while advances grew to Rs 85,811 crore. The bank is targeting credit growth of 15 per cent and deposit growth of 13 per cent.
Kumar said the bank has tied up with Reliance Jio to launch mobile wallet for its customers.
The Dena bank counter closed 4 per cent down at Rs 29.50 on the BSE today as against the bemchmark closing 0.60 per cent up. The bank's market capitalisation stood at a paltry Rs 1,967.36 crore.

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First Published: May 16 2016 | 7:32 PM IST

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