Dena Bank’s total business in Q3 FY 2016 rises 4.64% to Rs.1,90,724cr.

Mumbai 9th Feb, 2016 :Shri Ashwani Kumar, Chairman and Managing Director, Dena Bank, announced the financial results of the Bank for the Quarter ended 31st Dec 2015 after adoption by the Board of Directors.

 L to R: Mrs. Trishna Guha (ED), Mr. Ashwani Kumar (CMD), Mr. Ramesh Singh (ED) and Mrs. Usha Ravi (GM) at the press conference to announce Q3 FY16 results of Dena Bank.  

L to R: Mrs. Trishna Guha (ED), Mr. Ashwani Kumar (CMD), Mr. Ramesh Singh (ED) and Mrs. Usha Ravi (GM) at the press conference to announce Q3 FY16 results of Dena Bank.

Business Growth

Highlights for the Quarter/ Nine Months ended 31.12.2015

Ø Bank’s Operating Profit during Dec 15 (Q) is Rs 182.47 cr as compared to Rs 319.90 cr during Dec 14 (Q) and Rs 282.83 cr during preceding Quarter. Operating Profit has declined due to reversal of interest amounting to Rs 139 cr and increase in staff costs due to revision in AS-15 liabilities and 10th bipartite settlement.

Ø Bank has incurred a net loss of Rs 662.85 cr in Dec 2015(Q) as against net profit of Rs 76.56 cr in Dec 2014 (Q) and Rs 38.76 cr in preceding quarter. It is due to increase in provision for NPAs by Rs807 cr as compared to corresponding quarter of previous year, due to fresh slippages during the period under review.

Ø In spite of the large interest reversal, Bank has been able to maintain its NIM above 2% at 2.18% for the nine months period ended Dec 2015. For Dec 2015 (Q), NIM is 2.02%. If the effect of interest reversals is ignored, NIM for Dec. 2015 Q would have been 2.52%

Ø Bank has resorted to reorient its Balance Sheet by striving to achieve a CD ratio of 73%, reducing its high cost deposits and diversifying its loan portfolio in better yielding advances.

Ø This has resulted in a reduction in Cost of Deposits by 58 bps during the period under review. Cost of Deposits as of Dec 15 stands at 7.13%.

Ø Bank has been able to raise AT1 Bonds of Rs 1,000 cr in Jan 2016, to meet its capital requirements.

As of Dec 2015, Bank has been able to maintain its CRAR at 10.17% (with Tier I at 7.05%) in spite of the losses incurred during the period under review.

Ø CASA %age has improved by 88 bps from Dec 2014 [Q] and stood at 29.07% as of Dec 2015.

Ø Priority Sector Advances have increased by 17.99% and stood Rs. 32,768 cr as of Dec 2015 as compared to Rs. 27,770 cr as of Dec 2014.

Ø Agriculture Advances improved by 32.34% on Y-O-Y basis and stood Rs. 15,254 cr as of Dec. 2015 as compared to Rs 11.526 cr as on Dec 2014.

Ø Priority Sector Advances as of Dec 2015 are 38.64% of ANBC as against 34.18% as of Dec 2014.

Ø Bank has opened 34.22 lacs accounts under Pradhan Mantri Jan Dhan Yojana [PMJDY] against the target of 18.50 lacs and issued 27.98 lacs RuPay Cards.

Ø Bank has covered all the allotted 6,475 villages under FI. Out of this, 5,794 villages through BC model and 681 villages through Brick & Mortar Branches.

Ø Bank has enrolled 7.42 cr residents for Aadhar Number as of Dec 2015 and having top position amount Non State Registrars (NSR) to UIDAI.

Ø Bank has also successfully launched and implementing Direct Benefit Transfer Scheme as per GOI Guidelines through Aadhar Payment Bridge System (ABPS) and Aadhar Enabled Payment System (AEPS).

Ø Bank has opened 57.85 lacs BSBDAs (Basis Savings Bank Deposit Accounts) against the target of 20.75 lacs accounts to be achieved by March 2016.

Ø Bank has received subsidy in 151 lacs records amounting Rs. 355.71 cr under DBT & DBTL as Dec 2015.

Bank has contributed an amount of Rs. 1 cr towards Swachh Bharat Kosh and Rs. 39 lacs towards construction of 26 toilets in schools in the State of Chhatisgarh under Swachh Vidyalaya Campaign.

Mrs. Trishna Guha (ED), Mr. Ashwani Kumar (CMD) and Mr. Ramesh Singh (ED) at the press conference to announce Q3 FY16 results of Dena Bank

Mrs. Trishna Guha (ED), Mr. Ashwani Kumar (CMD) and Mr. Ramesh Singh (ED) at the press conference to announce Q3 FY16 results of Dena Bank

Ø Bank has adopted two villages in the States of Gujarat and Chhatisgarh under Swachh Bharat Campaign and committed to spend Rs. 50 lacs towards the same

Going Forward:

Ø Bank will strive to achieve Credit Deposit Ratio of 74%.

Ø Bank expects to maintain NIM in the range of 2.25% to 2.50%.

Ø Bank has target to opening 100 e-smart lobbies during FY 2015-16.

Ø Bank will continue to focus on Retail & MSME advances.

Ø Strengthening of Loan Processing Centres.

Ø To cater to needs of new branches being opened and provide personalized customer service, Bank has recruited 195 POs, 128 Specialist Officers and 496 Clerks during the quarter ended Dec 2015.

About the Author

Sachin Murdeshwar
Sachin Murdeshwar is a Sr.Journalist and Columnist in several Mainline Newspapers and Portals.He is an ardent traveller and likes to explore destinations to the core.