The Hindu Business Line : Dena Bank Q1 profit jumps 68% on higher non-interest income

Mumbai, July 25 Dena Bank’s net profit rose 68 per cent to Rs 115 crore in the first quarter of 2009-10, helped by a substantial growth in non-interest income. The bank had reported a profit of Rs 68 crore in the year-ago period.

The non-interest income increased to Rs 155.35 crore from Rs 66.94 crore due to the higher treasury income of Rs 303 crore (Rs 182 crore), said Mr D.L. Rawal, Chairman and Managing Director, Dena Bank.

The bank made a profit of Rs 80 crore on sale of investments against a loss of Rs 10 crore in the corresponding quarter of the last fiscal.

Cost of deposits rises

Net interest margin decreased to 2.42 per cent (2.55 per cent), due to higher cost of funds. The cost of deposits increased to 6.44 per cent (6.19 per cent). Yield on advances increased to 10.52 per cent (10.04 per cent).

Mr Rawal said the cost of deposits will come down by this fiscal-end as the bank is in the process of repricing its deposits and targeting to bring it down to 6 per cent by March 2010.

CASA deposits

The share of current and savings account (CASA) deposits to total deposits has come down to 36.43 per cent (39 per cent).

The bank plans open 100 more branches and increase the number of ATMs to 450 by March 2010 from 387.

“We will make all our branches a part of the core banking network by December,” Mr Rawal said.

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