Total income increased by 30.17 per cent to Rs702.42 crore for the April-June 2007-08 quarter, compared to Rs539.61 crore for the same quarter of the previous year, Dena Bank said in a filing with the Bombay Stock Exchange (BSE).

Net interest income grew by 13.85 per cent to Rs224.69 crore in April-June this year from Rs197.36 crore in the year-ago quarter.

While net interest margin (NIM) fell to 3.11 per cent from 3.22 per cent a year earlier, the NIM improved by 11 basis points from 3 per cent in January-March 2006-07.

Yield on advances increased by 200 basis points to 10.02 per cent, the cost of deposits rose by 91 basis points to 5.57 per cent in the quarter ended June 2007 from a year earlier. Non-interest income grew 20.83 per cent to Rs75.17 crore in the first quarter from Rs62.21 crore a year earlier.

The bank's deposits increased by 15.71 per cent to Rs27,968 crore, while advances grew 20.27 per cent to Rs18,255 crore. Retail advances rose 40 per cent to Rs3314 crore, forming 18.15 per cent of total advances.

The level of gross non-performing assets (NPAs) fell to 4.11 per cent from 6.42 per cent, while the net NPA ratio came down to 2.07 per cent from 3.25 per cent a year earlier. The bank plans to bring down its gross NPA level and net NPA level to 2.5 per cent and 1 per cent, respectively by March 2008.

The bank's capital adequacy ratio (CAR) stood at 11.90 per cent up from 10.46 per cent a year earlier. Tier I capital was 6.44 per cent.

Dena Bank is also in talks to partner State Bank of India (SBI) for issuing co-branded credit cards. Under the tie-up arrangement, SBI would bear the credit risk on the credit card while Dena Bank in turn would receive a royalty for marketing and distributing the card

Shares of the nationalised bank jumped 2.55 per cent and were last trading at Rs58.30 on the BSE.