Dena Bank Q4 net at Rs 110.99 crore
Mid-size public sector Dena Bank clocked a net profit of Rs 110.99 crores in the fourth quarter ended March 31, 2008 led by a rise in other income due to a sale of property.business Updated: Apr 30, 2008 20:57 IST
Mid-size public sector Dena Bank clocked a net profit of Rs 110.99 crores in the fourth quarter ended March 31, 2008 led by a rise in other income due to a sale of property.
With all its provisioning requirements being met by written back tax gains, there was no outgo from its bottom line leading to a net profit growth of 153.40 per cent over Rs 43.80 crores, bank Chairman and Managing Director P L Gairola told reporters in Mumbai.
"We sold a property at Cuffe Parade for Rs 30 crore and also our profits were not used for provisioning which has contributed to our bottomline," he said.
The bank expects to raise around Rs 500 crore this year through debt to be Basel II compliant and business expansion.
"As per our last year balance sheet, we have a headroom of about Rs 700 crores. We will plough back our profits this year which will increase the headroom," he said.
Gairola said that the bank will have to make provisions of Rs 108 crore to implement the new accounting standards of AS-15, one fifth of which has been provided for in this year results.
Dena Bank is looking at an overall business growth of 23-24 per cent in FY'09.
The capital adequacy of the bank in this quarter has come down by 0.43 per cent at 11.09 per cent, he said. The net interest income was up by 2.29 per cent and net interest margin at 2.85 per cent.
For FY'08, the bank posted a net profit of Rs 359.79 crores, up by 78.5 per cent.
On asset quality, Gairola said that gross NPA ratio of the bank came down to Rs 572.60 crores from Rs 744.48 crores while net NPAs declined to Rs 215.43 crores compared to Rs 364.80 crores.
The cash recoveries including other credits stood at Rs 185 crores as compared to Rs 247 crores in the previous year.
The recoveries from written off accounts was Rs 114.29 crores as compared to Rs 155.60 crores during the previous year.
On expansion, Gairola said that bank plans to open at least 22 new branches during the current year. It will open another industrial finance branch at New Delhi.
"The bank proposes to enter into a tie-up arrangement with postal department for engaging their services as business facilitators for processing and recovery of loans," Gairola added.