Dena Bank - 1QFY2014 Result Review - Angel Broking

Dena Bank reported weak operating performance for the quarter. NII expectedly de-grew by 1.2% yoy. Non-interest income grew strongly by 158% yoy, probably boosted by treasury gains. Overall, pre-provisioning profit for the bank grew by 28.0% yoy. On the asset quality front, the bank witnessed significant asset quality deterioration during the quarter, as Gross and Net NPA levels increased sequentially by around 21%. Consequently, provisioning expenses for the bank more than doubled to Rs. 228cr on a yoy basis, and earnings de-grew by 20.7% yoy at Rs. 189cr. We await further clarity from the management regarding the asset quality performance during the quarter and outlook on the same going ahead.

At the CMP, the stock trades at valuations of 0.3x FY2015E ABV. We maintain our Neutral recommendation on the stock.

Source : Equity Bulls

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