Earnings Review
DCB Bank Q1 PAT rises as provisions fall sharply on year
This story was originally published at 18:11 IST on 24 July 2026
Register to read our real-time news.By Janwee Prajapati
MUMBAI – DCB Bank Ltd. posted a double-digit increase in net profit for the June quarter, largely on the back of a sharp decline in provisions and contingencies. The bottom line grew both on year and sequentially, supported by higher total income driven by an uptick in interest income. However, the increase in net profit was limited by a rise in tax expenses and overall operating costs.
The private-sector bank's net profit rose nearly 36% on year to INR 2.13 billion in the June quarter. The bottom line rose almost 4% sequentially. Analysts had estimated the private-sector bank's net profit for the quarter at INR 1.95 billion, up 24% on year but down 5% on quarter.
The bank's total income was INR 21.81 billion, up over 6% on year and nearly 3% on quarter. The private-sector bank reported net interest income of INR 6.84 billion, up 18% on year.
DCB Bank's profit got a boost from a sharp drop in provisions and contingencies, which fell more than 50% on year to INR 570 million. Provisions and contingencies fell over 17% sequentially. The lender's provision coverage ratio stood at 79.81% for the June quarter. The ratio reflects the share of bad loans covered by funds set aside from profits.
Asset quality also improved in the first quarter of the financial year 2026-27 (Apr-Mar). As of Jun. 30, the bank's gross non-performing asset ratio was 2.43% and the net non-performing asset ratio was 0.84%, down from 2.45% and 0.89%, respectively, in the March quarter.
Interest income accounted for the bulk of the bank's total income, rising over 9% on year to INR 19.84 billion. However, growth in total income was limited by a decline in other income, which forms about 9% of total income. Other income fell to INR 1.96 billion in the June quarter, down nearly 17% on year and over 7% sequentially.
On the expenses side, the bank's total expenditure rose nearly 7% on year to INR 18.37 billion. Operating expenses were the biggest contributor, climbing almost 10% on year to INR 5.36 billion. Other operating expenses, which accounted for about 43% of total operating expenses, increased nearly 15% on year. More
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