Dena Bank - 4QFY2013 Result Review - Angel Broking

During 4QFY2013, Dena Bank posted a moderate operating performance, with operating income and operating profit decline of 1.4% and 15.7% yoy, respectively. The bank faced asset quality pressures during the quarter (as their gross and Net NPA on an absolute basis increased by 10.3% and 12.3% qoq, respectively) and consequently their provisioning expenses increased by 17.5% yoy. Due to higher provisioning expenses and moderate operating performance, the bank reported a PAT decline of 50.7% yoy to Rs. 126cr.

At CMP, the stock trades at valuations of 0.5x FY2015 ABV. We recommend Neutral rating on the stock.

Source : Equity Bulls

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