 "Dena Bank")
State-owned Dena Bank Tuesday reported an over two-fold jump in its net loss to Rs 4.17 billion in the second quarter ended September 2018.
The bank had registered a net loss of Rs 1.85 billion in the same quarter of the previous fiscal.
Total income of the bank also fell to Rs 25.37 billion in the quarter under review from Rs 26.09 billion in the same period of 2017-18, the bank said in a regulatory filing.
The bank's asset quality was dented further during the quarter with the gross non-performing assets (NPAs) hitting 23.64 per cent of the net advances as on September 30, 2018, from 17.23 per cent in the same period a year ago.
Net NPAs too, worsened at 11.7 per cent as against 10.61 per cent in the year-ago period.
Thus, provisioning for bad loans was raised to Rs 7.24 billion during the September quarter of 2018-19 as against Rs 6.52 billion set aside for the second quarter of the previous fiscal.
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The overall provisions and contingencies for July-September were at Rs 8.68 billion up from Rs 7.36 billion, Dena Bank said.
Additionally, the bank said the board of directors in its meeting held on September 24 recommended for the amalgamation of Dena Bank with Bank of Baroda and Vijaya Bank.
Dena Bank also said it will continue the exposure to MSME borrowers to be classified as standard assets, where the dues between September 1, 2017, to December 31, 2018, are paid not later than 180 days from their respective original due dates.
"Accordingly, the bank has retained advances of Rs 1.24 billion as standard assets as on September 30, 2018, and is maintaining a standard asset provision of Rs 62.1 million," it said.
Provision coverage ratio of the bank at end-September stood at 65.27 per cent.
The stock of Dena Bank closed 1.92 per cent down at Rs 15.90 apiece on BSE.
