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Informist, Thursday, Jan. 22, 2026

By Taniva Singha Roy

MUMBAI - DCB Bank is expected to report a substantial rise in its net profit for the December quarter, driven by healthy loan growth and stable operating expenses, brokerages tracking the bank said. They expect robust business growth and asset quality improvement in the third quarter.

The bank is expected to report a net profit of INR 1.87 billion for the reporting quarter, up nearly 24% on year. However, the bottom line is expected to rise only by 2% sequentially. The highest estimate for the bank's December quarter net profit is INR 2.03 billion from JM Financial Institutional Securities Pvt. Ltd. and the lowest estimate is INR 1.67 billion from Prabhudas Lilladher Pvt. Ltd.

DCB Bank reported a net profit of INR 1.84 billion for the September quarter, up over 18% on year and nearly 17% sequentially.

The bank's net interest income is expected to be INR 6.20 billion for the reporting quarter, up 14% on year. Sequentially, it will be up over 4%. The highest estimate for this is INR 6.33 billion from Kotak Securities Pvt. Ltd. and the lowest is INR 6.04 billion from Nirmal Bang Equities Pvt. Ltd. The net interest income of DCB Bank was INR 5.96 billion for the September quarter, up 17% on year and 2.5% sequentially.

The bank's operating profit is likely to grow 15% on year, led by healthy loan growth and stable growth in operating expenses, Kotak Securities said. The bank's loan book is expected to remain healthy and rise 18.8% in Oct-Dec. In the September quarter, the bank's advances grew 19% on year to INR 529.75 billion from INR 444.65 billion reported a year ago.

The net interest margin is likely to be flat or show marginal improvement on quarter at 3.2% as cuts in lending rates are likely to be offset by a re-pricing of deposits, it said. "We see deposit growth at 20% on year," Kotak Securities said. The NIM during the September quarter was 3.23%, slightly higher than 3.20% a year ago.

The bank's asset quality is likely to be stable, with slippages at 3%, mostly from microfinance institutions, retail, and erstwhile restructured loans, brokerages said. In the September quarter, asset quality had improved slightly with the gross non-performing assets ratio at 2.91% compared with 2.98% in the June quarter. Its net non-performing assets ratio in the September quarter was 1.21%, a marginal improvement from 1.22% in the June quarter.

JM Financial said the banking sector is expected to reflect visible improvement in the third quarter of the current financial year, driven by stronger credit momentum, easing cost of funds pressure, and improving asset quality.

DCB Bank will detail its December quarter earnings on Friday. The net interest margin and return on equity are key variables to monitor, according to Kotak Securities.

Shares of DCB Bank closed at INR 179.22 on the National Stock Exchange Wednesday, down 1.5%. The bank's stock is up nearly 39% from Oct 17. when it had reported its earnings for the September quarter. 

Of the 17 brokerage reports available on the company with Informist, 16 have a 'buy' or equivalent rating on the stock and one has a 'sell' rating. The average target price for 'buy' recommendations is INR 185, which is 3.2% lower than the current market price. 

Following are the Oct-Dec earnings estimates for DCB Bank from eight brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Avishek Dutta

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