Dena Bank reports Q4 net loss of Rs.12.25 billion

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With the bank being put under mandatory prompt corrective action (PCA) by the Reserve Bank of India for their non-performing assets and for posting losses for two consecutive financial years, the situation does not look pretty for Dena Bank, as they have reported that their net loss for Q4 has widened to Rs.12.25 billion. Following the Reserve Bank of India putting them under the prompt corrective action (PCA), the bank will have to make do with restrictions on staff recruitment, providing fresh credit exposure and their expenditure as a bank on the whole.

Dena Bank-Non-Performing Assets
Dena Bank reports Q4 net loss of Rs.12.25 billion

Dena Bank, which is void of a managing director and chief executive officer following Ashwani Kumar stepping down from his post, reported a net loss that has increased to Rs.12.5 billion at the end of March – Q4 for the 2017-2018 Financial Year. In total, the bank has recorded a net loss of Rs.19.23 billion for the financial year of 2017-2018 and a net loss of Rs.8.63 billion for the previous financial year – 2016-2017. Taking into consideration the gross non-performing asset percentage, the NPA of Dena Bank rose to 22.4% as of 31 March, 2018, from 16.27% as of 31 March, 2017.
Not just Dena Bank, but due to their credit profiles, Bank of Maharashtra, Allahabad Bank, Oriental Bank, and UCO Bank have been put under prompt corrective action (PCA) as well by the Reserve Bank of India for their poor performance with regard to rectifying the growth of non-performing assets. According to the RBI, despite the warning, none of the five banks (including Dena Bank) improved upon their net losses or showed signs of reducing the scale of their non-performing assets in Q4 (from January 2018 to March 2018).

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