Dena bank has suffered a loss of Rs 189 crore for the quarter ended June 2005 as against a Rs 36 crore in the same period in 2004- 05. The loss is on account of Rs 200 crore due to transfer of bond securities from available-for-sale (AFS) to held-to-maturity (HTM) basket. The loss was due to the banks conscious decision to de-risk the portfolio from the interest rate risk.
Shifting securities to HTM category protects a bank making provisions in case of rising interest rates, though the bank has to make a one-time provisioning. The banks operating profit rose 45% to Rs 124 crore, as against Rs 85.5 crore in the year ago period. |
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| Posted : 8/2/2005 |
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