The bank had reported a net loss of Rs 3,342.04 crore for Q3 in the wake of huge provisions.
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He blamed the excess provision of Rs 2,900 crore towards shoring up the provision coverage ratio to the industry average of 60 per cent and setting aside Rs 1,564 crore for pension liabilities that hurt its bottomline for the reporting quarter. The bank had posted a net profit of Rs 209.2 crore in the January-March quarter of 2014-15. For the whole year, the bank’s net loss was about Rs 2,799 crore, against a net profit of Rs 1,137.80 crore for the year ended 31 March 2015. Bank’s per cent Gross NPA stands at 9.99 as against 3.72. The bank has drastically raised its provisioning to Rs 6,858 crore to cover stressed loans; the provisioning was Rs 1,817 crore past year. This provision is over and above the credit loss provision required as per RBI norms. With this, the full year standalone loss for the bank is Rs 5,395 crore – the largest annual loss for an Indian bank – as against a profit of Rs 3,398 crore in FY15.
Last fiscal the bank’s provisions for bad loans were Rs.15,513.65 crore as against Rs.4494.50 crore for the year ended March 31, 2015.
Its total income rose to Rs 12,789 crore in the March quarter from Rs 12,057 crore in the year ago period. The bank’s gross NPAs rose to 8.7% in March 2016 from 4.96% in March 2015. “At this juncture all that I can say is March 2017 financial results will be better than March 2016”, Tiwari said.
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Dena Bank slumped to a loss of Rs 326 crore in the quarter ended March 2016 compared to a net profit of Rs 56 crore a year ago. Per cent Net NPA has come in at 5.06 from 1.89 for the year ending March 2015. Central Bank reported Rs 898.04 crore loss as gross NPAs doubled and provisions rose four times to Rs 2,287 crore from Rs 617 crore a year ago. Provisions almost doubled to Rs 901 crore as against Rs 478 crore in the same quarter a year ago.
