Views on Dena Bank 4QFY2014 results - Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research – Banking, Angel Broking) on Dena Bank 4QFY2014 results:

"Dena Bank reported weak asset quality performance during the quarter, continuing the trend witnessed over last seven quarters. Over the last seven quarters until 4QFY2014, the bank's asset quality has faced tremendous pain, as absolute Gross NPAs have almost tripled, while net NPAs have more than tripled. Even during the quarter, absolute gross and Net NPAs continued the northward movement and grew by 26.6% and 31.9%, qoq respectively. On the operating performance front, while NII grew moderate at 9.3% yoy, non-interest income grew 15.7% yoy enabling bank to report operating profit growth of 11.7% yoy to Rs. 448cr. Provisioning expense grew by 66.8% yoy to Rs. 570cr thereby registering a PBT level loss of Rs. 123cr. But tax reversals to the tune of Rs. 310cr enabled bank to register earnings growth of 49.0% yoy to Rs. 187cr. We retain our Buy rating on the stock."

Source : Equity Bulls

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