Public sector lender Dena Bank today reported a 67 per cent decline in net profit at Rs 67.80 crore for the quarter ended December 31 on account of higher provisioning.
The bank's profit after tax stood at Rs 206 crore in the corresponding quarter last year.
"Profitability is under stress due to higher provisioning," the bank's Chairman and Managing Director Ashwani Kumar told reporters here.
The bank's provisions increased to Rs 382.43 crore in the October-December quarter as against Rs 156.59 crore last year.
The bank's net interest margin (NIM) stood at 2.66 per cent in the quarter as against 2.88 per cent.
"We expect our NIM to be in the range of 2.75-3 per cent by March 2014," Kumar said.
Net Interest Income (NII) for the quarter was Rs 660.89 crore, a growth of 7.48 per cent, compared to Rs 614.90 crore in the same quarter last year.
The bank's asset quality deteriorated in the quarter with gross NPA increasing to 2.96 per cent from 2.09 per cent in the year ago quarter. Net NPA ratio rose to 2 per cent from 1.31 per cent in the same period last year.
In absolute terms, gross NPA has increased from Rs 1,317 crore to Rs 2,066 crore in the third quarter ended December 31, while net NPA increased from Rs 817 crore to Rs 1,379 crore.
Provision coverage ratio for the quarter was at 63.92 per cent. In the quarter under review, the bank's provisioning for non-performing assets was Rs 124 crore while for restructured assets it was Rs 53 crore, Kumar said.
The bank saw fresh slippages of Rs 503 crore during the quarter. One of the large accounts which became NPA was SEL worth Rs 99 crore, Kumar said.
The bank upgraded Rs 400 crore of bad loans in the quarter. The state-owned bank restructured Rs 552 crore of assets in the December quarter and has a pipeline of Rs 600 crore in the current quarter, Kumar said. Total business of the bank stood at Rs 1,65,976 crore as compared to Rs 1,47,922 crore.
While deposits of the bank increased to Rs 96,081 crore as on December 31 from Rs 84,882 crore last year, recording a growth of 13.19 per cent; advances increased to Rs 69,895 crore from Rs 63,041 crore, showing a growth of 10.87 per cent. Credit deposit ratio stood at 72.75 per cent.
The bank expects a credit growth of 17 per cent and deposit growth of