Dena Bank Q4 PAT up 62% driven by tax refund

Public sector lender Dena Bank on Tuesday reported more than 62% year-on-year jump in its fourth quarter (Jan-March) net profit to Rs 255 crore, driven by one time tax refund. For the fiscal year 2011-12, net profit rose 31% y-o-y to Rs 803 crore.

"Without the tax refund net profit would have been flat in Q4 but a rise of 11% y-o-y in the financial year FY12," said Nupur Mitra, chairman and managing director, Dena Bank while adressing a press conference here in Mumbai.

"We had appealed to the Income Tax department and got the refund. This one time refund of Rs 137 crore was adjusted during Jan-March quarter. Moreover, we made a provision of Rs 98 crore against restructured assets, which stood at Rs 3,400 crore in FY12 as against around Rs 1,100 crore."

As per RBI norms, banks are required to make 2% provisions for restructured standard (performing) assets.

Net interest income or the difference between interest earned and paid out increased nearly 27% to Rs 598 crore. The lender's loan book expanded more than 26% to Rs 57,000 crore during the year. It brought down its power sector credit exposure 15% (at Rs 8,800 cr) as against 25% a year back.

"Most of the restructured loans were from sectors like state electricity boards, aviation, cement, and textile. However, all are now performing assets," she added

During the quarter, gross non-performing asset ratio declined to 1.67% compared with 1.88% and net NPA ratio too dropped at 1.01% versus 1.10%.

Dena's deposits grew by 20% y-o-y to Rs 77,167 crore in FY12. The share of current account and savings account (CASA) to tottal deposits stood at 34% as on March 31, 2012.

Capital adequacy ratio stood at 11.51% for the fourth quarter of FY12 as against 13.41% in a year ago.

"We will be raising Rs 1,200 crore through lower tier II bonds in FY13 in order to maintian our overall capital adequecy ratio at around 12%. However, we need not to raise anything for our core capital in the next two years. It is currently at 8.86%," Mitra said.

Dena Bank has proposed to pay a dividend of Rs 3 per share.

Source: www.moneycontrol.com

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