Dena Bank reports Rs663 crore loss for October-December
The bank's provisions for the quarter rose to Rs967 crore from Rs241 crore reported in the same period a year ago
Mumbai: State-owned lender Dena Bank reported a loss of ₹ 663 crore for the quarter ended 31 December, owing to tripling of provisions and a drop in interest income.
The bank had reported a profit of ₹ 76.56 crore a year ago.
The bank’s provisions for the quarter rose to ₹ 967 crore from ₹ 241 crore reported in the same period a year ago. The provisions for the July-September quarter stood at ₹ 283.5 crore.
Provisions rose on account of an intense asset quality review conducted by the Reserve Bank of India (RBI) in the October-December quarter, where the regulator asked banks to consider providing for many stressed assets which were classified as standard.
Gross non-performing assets (NPAs) for the third quarter rose 50% to ₹ 7,916 crore from ₹ 5,282.62 crore in the preceding three months. Gross NPA ratio as a share of gross advances stood at 9.85% as on 31 December, higher than 6.84% at the end of September.
Post the increased provisioning, net NPA ratio for the December quarter stood at 6.68% of total assets. It stood at 4.65% in the September quarter.
Net interest income (NII), or the difference between interest expended on deposits and that earned on loans, stood at ₹ 566.6 crore for the third quarter, down 6% from ₹ 602 crore reported a year ago. Other income for the October-December quarter stood at ₹ 163 crore, lower than ₹ 196 crore reported in the same quarter a year ago.
Dena Bank shares fell 12.10% to close at ₹ 31.25 on BSE on Tuesday, while the exchange’s benchmark Sensex shed 1.10% to close at 24,020.98 points.
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