MUMBAI, June 23: DENA Bank has posted a 41% jump in net profit to Rs 72 crore for the year ended March 31, 1997, against Rs 51.67 crore registered in the previous year. The board, which met in Mumbai on Monday to finalise the audited results, recommended a maiden dividend of Rs 1.20 for every Rs 10 share.

The public holds 29 per cent in the Mumbai-based bank's equity, with the rest held by the government. Dena Bank entered the market last year with a Rs 180-crore issue.

The bank's gross profit rose to Rs 172 crore from Rs 145.49 crore reported in 1995-96. Its net NPA level fell to nine per cent from 13 per cent registered in the previous financial year.

Unruffled by the general slowdown in credit offtake in the banking industry, Dena Bank has registered a 15 per cent rise in its credit portfolio. The bank's aggregate deposits, in line with the industry, continued to rise and posted a 20 per cent rise over the previous year.

The bank's capital adequacy ratio, as in March 1997, stood at 10.7 per cent. The ratio went up during the last year on account of the public issue. The Dena Bank share carried a premium of Rs 20. The bank has also increased its current portfolio of government securities.

It has marked to market 71 per cent of its investment portfolio against the Reserve Bank of India's stipulated requirement of 50 per cent in March 1997. The State Bank of India and Bank of Baroda have both marked to market 70 and 80 per cent of their investment portfolios.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.