Dena Bank net up 20.5 pc

PTI | 09:10 PM,Oct 31,2011

Mumbai, Oct 31 (PTI) Mid-size public sector lender Dena Bank today posted a 20.5 percent rise in net profit to Rs 193.58 crore for the second quarter on the back of rising net interest income and improvement in its asset quality. "We have posted good numbers despite a difficult interest rate regime," Chairman and Managing Director DL Rawal told reporters here. Total income increased 30.35 percent to Rs 1,747.19 crore compared to Rs 1,340.38 crore a year earlier, while net interest income rose 10.66 percent to Rs 514.89 crore against Rs 465.27 crore. However, reflecting the hardening interest rate scenario, the net interest margin fell to 3.22 percent from 3.52 percent reported in the same period last year. But this was 0.32 percent up over the last quarter. During the second quarter, total deposits grew 20.07 percent to Rs 64,235.67 crore while advances rose 17.95 percent to Rs 43,100 crore. "We hope our credit growth for this fiscal will be around 20 percent as we expect credit to pick up in agri-related sectors in the second half of this fiscal," Rawal said. Asset quality of the bank also improved during the reporting quarter. While gross NPA declined to 1.93 percent from 2.26 percent a year earlier, net NPA improved to 1.15 percent from 1.49 percent reported in the same period last year. "We will be able to maintain the NPA level at the present level as we are closely monitoring all our loan assets," Rawal said, adding the bank is focusing on recovery of its existing NPA portfolio. The bank's capital adequacy ratio stood at 12.55 percent by the end of the September quarter. The Dena Bank shares soared 6.04 percent to close at Rs 80.70 on the BSE, whose main index inched down 0.6 percent on profit booking.