Earnings Review
DCB Bank's PAT beats estimates despite jump in provisions
This story was originally published at 18:20 IST on 25 April 2025
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--DCB Bank Jan-Mar net profit INR 1.77 bln
--Analysts saw DCB Bank Jan-Mar net profit INR 1.59 bln
--DCB Bank Jan-Mar net profit INR 1.77 bln vs INR 1.56 bln year ago
--DCB Bank Jan-Mar total income INR 19.61 bln vs INR 15.81 bln year ago
--DCB Bank Jan-Mar provisions INR 672.2 mln vs INR 240.8 mln year ago
--DCB Bank to pay INR 1.35 per share dividend
--DCB Bank board OKs raising up to INR 7.50 bln via QIP
--DCB Bank board OKs raising up to INR 5 bln via debt FY26
--DCB Bank gross NPA ratio 2.99% as on Mar 31 vs 3.11% quarter ago
--DCB Bank net NPA ratio 1.12% as on Mar 31 vs 1.18% quarter ago
--DCB Bank Basel-III capital adequacy ratio 16.77% as on Mar 31
--DCB Bank FY25 net profit INR 6.15 bln vs INR 5.36 bln year ago
--DCB Bank FY25 total income INR 72.21 bln vs INR 58.36 bln year ago
--DCB Bank provision coverage ratio at 74.48% as on Mar 31
--DCB Bank net advances at INR 510.47 bln as on Mar 31, up 24.7% YoY
--DCB Bank deposits at INR 600.31 bln as on Mar 31, up 21.6% YoY
--DCB Bk: CASA ratio at 24.52% as on Mar 31 vs 25.09% qtr ago, 26.02% yr ago
--DCB Bank Jan-Mar net interest income INR 5.58 bln, up 9.8% YoY
--DCB Bank Jan-Mar fresh slippages INR 3.65 bln vs INR 3.22 bln year ago
--DCB Bank Jan-Mar recoveries INR 1.81 bln vs INR 1.53 bln year ago
--DCB Bank Jan-Mar upgrades INR 1.22 bln vs INR 1.54 bln year ago
--DCB Bank Jan-Mar credit cost 0.36% vs 0.38% Oct-Dec, 0.16% year ago
--DCB Bank Jan-Mar cost of funds 7.34% vs 7.20% Oct-Dec, 7.14% year ago
--DCB Bank Jan-Mar NIM 3.29% vs 3.30% in Oct-Dec, 3.62% year ago
By Shubham Rana
NEW DELHI – DCB Bank's net profit for the quarter ended March beat analysts' expectations despite a jump in provisions, primarily aided by a robust rise in interest income and a sharp jump in other income. The private sector bank's net profit rose 13.7% on year and 16.9% on quarter to INR 1.77 billion. Analysts had expected DCB Bank to report a net profit of INR 1.59 billion. For 2024-25 (Apr-Mar), the bank reported a net profit of INR 6.15 billion, up 14.8% from the previous year.
Provisions for the March quarter jumped up nearly three-fold to INR 672.2 million from INR 240.8 million a year ago. The rise in provisions weighed on the net profit as the bank's operating profit before provisions increased 30.7% on year to INR 3.05 billion in Jan-Mar.
DCB Bank will pay a dividend of INR 1.35 per share for FY25. On Friday, its shares ended at INR 127.03 on the National Stock Exchange, down 1.5% from the previous close. The bank announced its financial results after market hours.
Total income of the bank for the Jan-Mar period increased 24% on year to INR 19.61 billion, led by a 20.6% year-on-year rise in interest earned to INR 17.42 billion, and a 60.4% jump in other income to INR 2.19 billion. For FY25, the total income rose to INR 72.21 billion from INR 58.36 billion the previous year.
DCB Bank's gross non-performing asset ratio moderated to 2.99% as of Mar. 31 from 3.23% a year ago and 3.11% a quarter ago. The net non-performing asset ratio was 1.12% as of Mar. 31, marginally higher than 1.11% a year ago but lower than 1.18% from a quarter ago.
The Basel-III capital adequacy ratio rose to 16.77% at the end of March from 16.59% a year ago and 16.29% a quarter ago.
DCB Bank's board approved raising up to INR 7.50 billion by issuing equity shares or other securities convertible into equity shares through a qualified institutional placement. The board also approved raising up to INR 5 billion through debt in FY26.
The bank's Jan-Mar net interest income rose 9.8% on year to INR 5.58 billion, in line with analysts' expectation. The net interest margin for Jan-Mar was 3.29% against 3.30% in Oct-Dec and 3.62% a year ago.
Net advances rose 24.7% on year to INR 510.47 billion as on Mar. 31. Deposits were up 21.6% on year at INR 600.31 billion as on Mar. 31. The current account, savings account ratio of the bank was 24.52% as on Mar. 31, compared to 25.09% a quarter ago and 26.02% a year ago.
Fresh slippages rose to INR 3.65 billion in Jan-Mar from INR 3.22 billion a year ago. Recoveries increased to INR 1.81 billion in Jan-Mar from INR 1.53 billion a year ago. DCB Bank's Jan-Mar upgrades fell to INR 1.22 billion from INR 1.54 billion a year ago.
The bank's credit cost was 0.36% in Jan-Mar, lower than 0.38% in Oct-Dec but higher than 0.16% a year ago. The cost of funds rose to 7.34% in Jan-Mar from 7.20% in Oct-Dec and 7.14% a year ago. DCB Bank's provision coverage ratio was 74.48% as on Mar. 31, the lender said in a press release. End
Edited by Nishant Maher and Ashish Shirke
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