Views on Dena Bank 1QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research - Banking, Angel Broking) on Dena Bank 1QFY2016 Results:

"Dena Bank reported weak operating performance and asset quality deteriorated. NII and other income grew by 2.7% and 1.2% yoy respectively. Operating expenses grew by 23.8% yoy, leading to decline in pre-Provisioning profit by 27.9% yoy. Asset quality worsened, as Gross and net NPA ratios increased sequentially by 75bps and 42bps respectively to 6.2% and 4.24%. At PBT level, the bank reported loss ofRs. 98.5cr, however tax reversals of INR 114cr aided the bank to report PAT of INR 15cr, registering a de growth of 81% yoy. At the CMP, the stock trades at valuations of 0.4x FY2017E ABV. We have NEUTRAL recommendation on the stock."

Shares of DENA BANK was last trading in BSE at Rs.44.9 as compared to the previous close of Rs. 44.15. The total number of shares traded during the day was 268141 in over 1619 trades.

The stock hit an intraday high of Rs. 45.5 and intraday low of 43.7. The net turnover during the day was Rs. 12003549.

Source : Equity Bulls

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