The Mumbai based Dena Bank declared its quarter 2 financials, which show that the bank recorded a 24 percent increase in its net profits due to a rapid growth in its interest income. Its net profits stand at Rs. 240 crore for the quarter ending September, 2012. For the same period last year, the bank had reported net profits of Rs. 194 crore.
Net interest income is the difference of total interest income earned and total interest income provided. Presently, the net interest income of the bank is at Rs. 594 crore, a rise of 15 percent from last year's figure of Rs. 515 crore. Dena bank's non interest earnings also increased by 18 percent, and currently stands at Rs. 134 crore.
Talking about the bank's performance in the second quarter of this year, the chairperson and managing Director of Dena Bank, Ms. Nupur Mitra said, "We expect an additional Rs 160 crore restructuring in the next quarter. Net interest margins declined to 2.86 per cent (from 3.22 per cent) due to rationalisation of rate of interests especially on loans to small and medium enterprises, agriculture and retail. This was done so that our accounts remain standard."
Its non-performing asset (NPA) ratio rose to 1.22 percent from last fiscal's 1.15 percent. The capital adequacy ratio was reported at 12.05 percent, as against 12.55 percent it posted in the year ago period.