A file photograph of the Dena bank company office in Mumbai. The financial institution’s loss waslimited because of a tax write-back of Rs.340.86 crore in the zone. photo: Hemant Mishra/Mint
Mumbai: Dena bank on Friday stated a net lack of Rs.326.38 crore for the March zone due to higherprovisions for terrible loans. The loss become constrained because of a tax write-lower back of Rs.340.86 crore in the quarter.
This was the second consecutive sector that the financial institution has stated a internet loss. within the 1/3 zone, the bank had suggested a loss of Rs.662.85 crore. The lender pronounced a earnings of Rs.55.82 crore within the March 2015 quarter.
terrible loans persevered to upward thrust as banks reclassified pressured assets.
Gross non-acting assets (NPAs) surged to Rs.eight,560.forty nine crore at the quit of the March regionfrom Rs.four,393.04 crore a year ago. The financial institution pronounced gross NPAs of Rs.7,916.forty seven crore inside the December-ended zone.
Provisions and contingencies jumped to Rs.900.ninety four crore in the area from Rs.478.02 crore a yr in the past. For the December region, the bank set apart Rs.966.97 crore as provisions against bad loans.
In December, the Reserve financial institution of India (RBI) carried out an asset nice evaluate across the banking zone, following which banks had been asked to understand visible careworn belongings as non-performing property (NPAs).
RBI additionally requested banks to make adequate provisions for those stressed property.
As a percentage of overall loans, gross NPAs stood at nine.98% on the stop of the March regioncompared with nine.85% in the preceding area and 5.45% within the yr–ago sector.
internet NPAs had been at 6.35% as compared with 6.sixty eight% within the previous area and three.eighty two% in the same sector ultimate yr.
internet interest earnings (NII), or the core income a financial institution earns with the aid of giving loans, rose marginally by using 2.7% to Rs.625.17 crore from Rs.608.72 crore a 12 months in the past. Non-hobby profits rose by using 7.21% to Rs.215.87 crore from Rs.201.35 crore in the same durationclosing year.
On Friday, Dena bank closed at Rs.30.70 at the BSE, up four.seventy eight% from the previous close,while the benchmark index Sensex Index fell 1.17% to close at 25,489.fifty seven points. The earningshad been launched after markets closed.
