Mumbai : Public sector Dena Bank reported a 23.79 per cent rise in net profit to Rs 239.64 crore in the second quarter ended September 30 on the back of an increase in core income and improvement in asset quality.
The company’s total income rose 33.23 per cent to Rs 2,327.84 crore from Rs 1,747.19 crore a year ago. “Our profit has risen as performing assets have done good during the period,” Dena Bank Chairperson and MD Nupur Mitra told reporters here.
The key net interest income (NII) increased around 15 per cent to Rs 594 crore in Q2 compared to Rs 515 crore. Net interest margin (NIM), however, came under pressure and stood at 2.86 per cent, down from 3.22 % a year ago.
“Margins declined because of rationalisation of rates in specific loan segments like SMEs and retail,” she said, adding the bank is hopeful of maintaining its NIM at 3 per cent in the current financial year. On credit and deposit front, the bank’s advances grew by 37.83 per cent to Rs 59,406 crore and deposits by 30 per cent to around Rs 83,600 crore in the second quarter.
While gross NPA rose to 1.97 per cent from 1.93 per cent a year earlier, net NPA inched up to 1.22 per cent from 1.15 per cent in the same period last fiscal.