Dena Bank's net loss widens to Rs 7.21 bn in Q1 on rise in NPA provisions

The provisioning coverage for bad assets in the June quarter also increased to Rs 12.44 billion

Dena Bank’s net loss widened to Rs 7.21 billion for the first quarter (April-June, or Q1) of this fiscal year (2018-2019 or FY19) on a sharp rise in provisions for bad loans. The public sector bank had registered a net loss of Rs 1.32 billion in Q1FY18.

Under the Prompt Corrective Action (PCA) plan, the bank’s total income fell 8 per cent year-on-year to Rs 24.1 billion.

Dena Bank is under PCA because of high bad loans. This has put it under restrictions on growing its loan book; it has to focus on recoveries, control expenses, and conserve capital.

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