Dena Bank Net Profit Falls by 57% In Q1FY15

The bank's net profit was down by 57% to Rs 81.5 crore against Rs 189.2 crore in the corresponding quarter of previous year. The June quarter net profit was down by more than half, this was primarily due to lower other income by 60.48% to Rs 144.42 crore against Rs 365.51 crore YoY for Q1FY14. The treasury profits declined drastically by 70% to Rs 79.42 crore against Rs 265.51 crore in the year-ago quarter.

The bank recorded muted growth in the net interest income (NII) which increased marginally by 1.20% on yearly basis to Rs 611.96 crore against Rs 604.73 crore. Provisions and contingencies of the bank has remained flat. Tax expenses of the bank declined significantly by 97.53% to Rs 4.17 crore for Q1FY15.

The asset quality of the bank deteriorated on sequential basis. The gross non-performing assets (NPA) and net NPA of the bank increased by 21.14% and 19.55% on quarterly basis. In absiolute terms it increased to Rs 316.92 crore and 217.45 crore respectively for Q1FY15. As a proportion to advances gross NPA and net NPA stood at 4.21% and 2.94% respectively for Q1FY15 up by 88 basis points and 59 basis points respectively.

Going forward, the bank is targetting a growth of 18% in business during FY 2014-2015. The bank also targets to open 180 new branches, strengthen its retail processing hub and SME processing centres and establish specialised NRI branch during FY 2014-2015. On Monday, the shares of the bank closed down by 4.13%.