Monday, February 6, 2012

Dena Bank = Qtrly Results = Q3 FY 2012 = 3rd Q/E Dec, 2011 = Total income up 28% YoY; NPT UP 20.28% = GOOD PERFORMANCE = FUTURE PROMISING

Dena Bank
NSE Symbol        DENABANK

DENA BANK  has reported improved results for the third quarter ending Dec,2011.

Interest on Advances        stands at Rs.1292.77 Cr in q3 FY 12 (current qtr -  up by  5.46% from Q2 FY 12 (previous qtr); up  by  9.82% from Q1 FY 12 (2nd previous qtr); and up by a good  31.06% from Q3 FY 11 (corresponding Qtr).

Income on Investments stands at Rs.374.83 in current qtr; down by -5.49% from  previous qtr(Q2 FY 12); up by  8.28% from Q1 FY 12; and up by 24.98 from corresponding qtr.

Interest Earned is Rs.1676.24 cr  in current Qtr – up by 2.6 % from previous qtr; up by  9.69% from 2nd previous qtr; and up by 29.95% from corresponding Qtr.

Other Income is Rs.133.97 cr in current qtr – up by  18.17% from previous qtr; up by  7.74% from 2nd previous qtr; and up by  5.44% from corresponding qtr.

Total Income is Rs.1810.21 cr in current qtr – up by  3.61% from previous Qtr; Up by  9.54% from 2nd previous qtr; and up by 27.75% from corresponding Qtr.

Interest Expended is Rs.1135.04 Cr in current qtr  – up by 1.44% from previous qtr; up by 4.94% from 2nd previous qtr; and up          37.84% from corresponding qtr. While the percentages are LOWER  in previous 2 Qtrs, it is much higher in corresponding qtr.

Net Interest Income is Rs.541.20 Cr in current qtr – up by  5.11% from previous qtr; up by  21.2% from 2nd previous qtr; and up by 16.03% from corresponding qtr. There is a healthy increase in NII.

Employees Cost is Rs.170.84 cr  in current qtr -  up by 5.05% from previous qtr; up by  1.62% from 2nd previous qtr; but down -5.51% from corresponding qtr.

Other Operating Expenses stands at Rs.111.16 cr in current qtr –  down by  -2.17% from previous qtr; up by 16.95% from 2nd previous qtr; and up by  15.49% from corresponding qtr.

Operating Expenses stands at Rs.282 Cr in current qtr – up by  2.08% from previous qtr ; up by  7.16% from 2nd previous qtr; and up by 1.79% from corresponding qtr. All expenses are under reasonable control.

Operating Profit stands at Rs.393.17 cr – up by     11.69% from previous qtr; up by  27.76% from 2nd previous qtr; and up by  24.25% from corresponding qtr.OPT is up with reference to all 3 quarters under comparison.

Provisions stands at Rs.124.33 cr in current qtr – against Rs.81.33 cr in previous qtr (up 52.87%); Rs.65.49 cr in 2nd previous qtr (Up 89.85%) and Rs.85.69 cr in corresponding qtr (Up 45.09%). Provisions have gone up higher compared to all 3 qtrs.

During Q3, Dena Bank has made a provision for Rs.45 Cr – on estimated basis in compliance with AS 15 ® which includes proportionate transitional liability of Rs.27 Cr out of the total transitional liability of Rs.108.35 Crs to be provided for in FY 2012.

Provision Coverage Ratio is 76.56% as on 31st,Dec,2011.

Profit before tax is Rs.268.84 cr in current qtr – against Rs.270.68 cr in previous qtr (down -0.68%); Rs.242.25 Cr in 2nd previous qtr n( up 10.98%) ; and Rs.230.74 cr in corresponding qtr (Up 16.51%). Because of Higher Provisions, PBT has increased but less proportionately.

Tax Expense is Rs.82.16 cr – against Rs.77.10 cr in previous qtr (6.56%); Rs.74.16 Cr in 2nd previous qtr (up 10.79%); and Rs.75.53 cr in corresponding qtr (Up 8.78%).

Net Profit  stands at Rs.186.68 cr – against Rs.193.58 cr in previous qtr (down -3.56%); Rs.168.09 cr in 2nd previous qtr (Up  11.06%); and Rs.155.21 cr in corresponding qtr (Up 20.28%).

Capital Adequacy Ratio is good at  11.58%. The Bank is likely to raise additional equity of 5% by preferential allotment at SEBI formula related price from LIC. The 0.5% CRR release should help it further in Q4 FY 12. This is likely to  help Dena Bank in enhancing its operations and profitability much more in ensuing qtrs.

Gross/Net NPA stands at Rs.523.97 cr – up by 6.71% from previous qtr; up by 14.34% from Q1 FY 12; and up just by  0.93% from Q3 FY 11. There was a single account of over 100 crores which pushed the NPAs up  high in current qtr.

 % of Gross/Net NPA has come down to 1.1% from 1.15% in previous qtr; and  1.26 in corresponding qtr. The bank expects % of NPAs to come down further in Q4 (though not absolute Nos), and recoveries to increase.

Return on Assets is Rs.1.05 up from  0.99 in corresponding qtr.

The Provision coverage Ratio is Higher than 76%.

Basic EPS stands at Rs.5.6 in Q3 FY 12; Rs.5.81 in Q2 FY 12; Rs.5.04 in Q1 FY 12;  and Rs.5.41 in Q3 FY 11. For 9 m/e Dec, 2011, the cumulative EPS is Rs.16.45 against Rs.15.85 in p/e Dec,2010.

The annual EPS is likely to be around Rs.22.05

The current Market price is Rs.81 – while the 52 week high price  is Rs.114.50 and the 52 week low price  is Rs.47.55.

The PE Ratio is 3.67.

Overall – the performance of Dena bank  in Q3 FY 12 and expectation from it in Q4  FY 12 are quite promising. The Bank has been improving its Position very steadily every quarter (on YoY basis). It is a good Buy for medium / long term Investors.

RESULTS TABLE


DENA BANK
31-Dec-11
30-Sep-11
%DIF1
30-Jun-11
%DIF2
31-Dec-10
%DIF3
Interest on Advances
129277
122587
5.46
117714
9.82
98637
31.06
Income on Investments
37483
39660
-5.49
34618
8.28
29992
24.98
Income on Balances
864
1134
-23.81
486
77.78
360
140
Interest Earned
167624
163382
2.6
152818
9.69
128989
29.95
Other Income
13397
11337
18.17
12435
7.74
12706
5.44
Total Income
181021
174719
3.61
165253
9.54
141695
27.75
Interest Expended
113504
111893
1.44
108163
4.94
82347
37.84
NII
54120
51489
5.11
44655
21.2
46642
16.03
Employees Cost
17084
16263
5.05
16811
1.62
18080
-5.51
Other Oprtng Expenses
11116
11362
-2.17
9505
16.95
9625
15.49
Oprtng Expenses
28200
27625
2.08
26316
7.16
27705
1.79
Operating Profit
39317
35201
11.69
30774
27.76
31643
24.25
Provisions
12433
8133
52.87
6549
89.85
8569
45.09
Profit before tax
26884
27068
-0.68
24225
10.98
23074
16.51
Tax Expense
8216
7710
6.56
7416
10.79
7553
8.78
Net Profit
18668
19358
-3.56
16809
11.06
15521
20.28
Face Value(Rs.)
10
10
0
10
0
10
0
Paid-up Equity
33339
33339
0
33339
0
28682
16.24
Capital Adequacy Ratio
11.58
12.55
-7.73
13.14
-11.87
11.08
4.51
Basic EPS
5.6
5.81
-3.61
5.04
11.11
5.41
3.51
Gross/Net NPA
52397
49101
6.71
45824
14.34
51914
0.93
 % of Gross/Net NPA
1.1
1.15
-4.35
1.08
1.85
1.26
-12.7
Return on Assets
1.05
1.11
-5.41
0.97
8.25
0.99
6.06
Public holding (%)
0
0

41.99

0

 
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