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Informist, Friday, Jan. 24, 2025

 

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--DCB Bank Oct-Dec net profit INR 1.51 bln vs INR 1.27 bln year ago 
--Analysts saw DCB Bank Oct-Dec net profit INR 1.41 bln
--DCB Bank Oct-Dec total income INR 18.55 bln vs INR 14.98 bln year ago
--DCB Bank Oct-Dec provisions INR 671.80 mln vs INR 410.0 mln year ago
--DCB Bank Apr-Dec net profit INR 4.38 bln vs INR 3.80 bln year ago
--DCB Bank Apr-Dec total income INR 52.60 bln vs INR 42.55 bln year ago
--DCB Bank gross NPA ratio 3.11% as on Dec 31 vs 3.29% quarter ago
--DCB Bank net NPA ratio 1.18% as on Dec 31 vs 1.17% quarter ago
--DCB Bank Basel-III capital adequacy ratio 16.29% as on Dec 31
--DCB Bank provision coverage ratio 74.76% as on Dec 31
--DCB Bank Oct-Dec net interest income INR 5.43 bln vs INR 4.74 bln yr ago
--DCB Bk total deposits INR 566.78 bln as on Dec 31 vs INR 471.20 bln yr ago
--DCB Bank net advances INR 477.80 bln as on Dec 31 vs INR 389.51 bln yr ago
--DCB Bank CASA ratio 25.09% as on Dec 31
--DCB Bank Oct-Dec net interest margin 3.30% vs 3.27% qtr ago
--DCB Bank Oct-Dec cost-to-income ratio at 62.70%
--DCB Bk Oct-Dec fresh slippages INR 3.95 bln vs INR 3.87 bln qtr ago
--DCB Bk Oct-Dec recoveries, upgrades at INR 2.92 bln vs INR 3.22 bln qtr ago
--DCB Bank Oct-Dec cost of funds at 7.20% vs 7.17% qtr ago
 

 

By Kabir Sharma

 

MUMBAI – Robust credit growth propelled DCB Bank's net profit for the December quarter almost 20% higher on year, with a large increase in non-interest income also aiding the bank's bottom line. In Oct-Dec, the private lender posted a net profit of INR 1.51 billion, beating analyst expectations of INR 1.14 billion.

 

The bank declared its results for Oct-Dec after market hours Friday. Its shares ended the day's trading session 1.6% lower at INR 113.52 on the National Stock Exchange.

 

As of Dec. 31, DCB Bank's advances stood at INR 477.80 billion, up 22.7% on year, leading to net interest income rising 14.6% to INR 5.43 billion. The bank said it is focused on "secured small ticket lending" and aims to double the size of its balance sheet every 3-4 years. The bank's deposits, meanwhile, were up 20.3% as of Dec. 31 at INR 566.78 billion, although the current account savings account ratio declined to 25.09% from 26.13% a year ago. As a result, the cost of funds as well as deposits rose 3 basis points from Jul-Sept to 7.20% and 7.12%, respectively.

 

Meanwhile, the bank's non-interest income jumped 48.8% to INR 1.84 billion, helping to push total income for Oct-Dec 23.9% higher to INR 18.55 billion. For Apr-Dec, the bank's total income was INR 52.60 billion, 23.6% higher from the previous year, with the net profit for the nine months at INR 4.38 billion, up 15.2%. The net interest margin of the bank inched up to 3.30% in Oct-Dec from 3.27% a quarter ago, but was down from 3.48% in the same period last year.

 

On the asset quality front, the bank's ratios saw an improvement in Oct-Dec, with the gross non-performing assets ratio declining to 3.11% as of Dec. 31, from 3.29% a quarter ago and 3.43% a year ago. The net bad loan ratio was at 1.18%, compared with 1.17% at the end of September and 1.22% a year ago. Fresh slippages in Oct-Dec were INR 3.95 billion, with provisions and contingencies rising 63.9% on year to INR 671.8 million. Recoveries and upgrades declined to INR 2.92 billion.

 

As of Dec. 31, DCB Bank's provision coverage ratio was 74.76%, while the capital adequacy ratio was 16.29%. The cost-to-income ratio for the reporting quarter was 62.70%.

 

"NIM (net interest margin) has shown an uptick and fee momentum remains robust," Praveen Kutty, managing director and chief executive officer, was quoted as saying in a release. "While there are headwinds in the microfinance and unsecured space, we are able to improve the overall asset quality. The focus on productivity is improving the cost-income ratio. We expect these positive trends to continue."  End

 

Edited by Rajeev Pai

 

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