Dena Bank’s Loss Widens To Rs 1,225 Crore As Bad Assets Soar In March Quarter
State-owned Dena Bank Ltd.’s net loss widened in the March quarter due to mounting bad loans and higher provisions.
The net loss rose to Rs 1,225.42 crore from Rs 575.26 crore in the January-March quarter. The bank reported loss on annual basis as well for the third year in a row due to ballooning non-performing assets . For the financial year 2017-18, the bank has posted a net loss of Rs 1,923.15 crore.
Asset quality worsened with the gross non-performing assets hitting a high of 22.4 percent of the gross advances as on March 31, 2018, from 16.27 percent as of end-March 2017. In value terms, gross NPAs or bad loans rose to Rs 16,361.44 crore from Rs 12,618.73 crore. Net NPAs were also up at 11.95 percent (Rs 7,838.78 crore) from 10.66 percent (Rs 7,735.12 crore).
Provisions against bad loans rose to Rs 2,150.60 crore from Rs 878.18 crore in the year-ago period. For the full financial year, provisions for bad assets rose to Rs 4,281.80 crore, as against Rs 2,457.75 crore.
- Total income fell to Rs 2,390.68 crore from Rs 2,612.08 crore in the year-ago period.
- Interest income declined to Rs 2,067.38 crore from Rs 2,297.11 crore.
- Provision coverage ratio stood at 60.20 percent as on March 31, 2018.
Dena Bank’s stock closed 0.54 percent lower Rs 18.45 on BSE.