Dena Bank Q2 net loss widens to Rs 185 crore

Dena Bank Q2 net loss widens to Rs 185 crore

Dena Bank Q2 net loss widens to Rs 185 crore

The company reported a standalone revenue of Rs 1,268 cr in September 2017 as against a revenue of Rs 1,307 cr in September 2016 quarter resulting in a decline by 3%.

"The idea is that we enhance our loss absorption capacity", he told reporters on a conference call, adding they aimed to further improve the provision coverage ratio as the banking sector moves towards global accounting standards.

Robust growth in other income coupled with contained operating expenses helped State Bank of India report a net profit of ₹1,582 crore in the second quarter against a net loss of ₹557 crore in the year-ago quarter.

The company had posted a net profit of Rs22.21 crore for the corresponding period of the previous fiscal, Novartis India said in a filing to the BSE. Acceleration in dealing with stressed assets, an economic turnaround and rising demand from retail loans may bring in better days and help the bank emerge stronger, it said.

"Deposit rate unless you cut you can not cut lending rate ... for time being we are in for much more stable interest rate", he said.

"This time we had some cushion available from SBI Life stake sale". Nifty PSU Bank as top gainer increased 4.32 per cent to settle for the week at 4,001.45 (+65.70) points. "Further, the new management chose to strengthen the balance sheet over profitability by increasing provision coverage ratio".

In line with its provisioning requirement against potential losses as directed by the RBI, State Bank has made 75 per cent of the requirement upfront in case all accounts are admitted to the NCLT.

On a postive note, the bank's asset quality improved on sequential basis post decline in fresh slippages in the second quarter.

Gross NPAs in absolute terms were also lower by 1 percent at Rs 1,86,115 crore (from Rs 1,88,068 crore in Q1FY18) and net NPAs fell 9 percent at Rs 97,896 crore (Rs 1,07,760 crore).

Gross NPAs' ratio fell to 9.83 per cent from 9.97 per cent in the last quarter, while the net bad loan ratio decreased relative to the previous quarter to 5.43 per cent from 5.97 per cent.

Similarly, net NPAs rose to 8.84 per cent of net loans, from 8.59 per cent. The slippages were at Rs 9026 crore compared with Rs 15000 crore anticipated by the market. "SME and personal loans are showing good recovery, and agriculture will start showing once we get the loan waiver amount from the government", Kumar said.

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