Comments
DCB Bank (formerly Development Credit Bank) reported a five per cent increase in net profit at Rs 45 crore during the first quarter ended June 2014. The marginal profit was helped by interest income and stable loan growth.
The profit was at Rs 43 crore a year ago.
Net interest income increased 67 per cent to Rs 139 crore during the quarter as against Rs 83 crore in the corresponding quarter last fiscal. On the other hand, non-interest income declined 24 per cent at Rs 34 crore from Rs 45 crore.
Gross non-performing assets (NPAs) declined to 1.78 per cent as on June 30, 2014 as compared with 3.41 per cent as on June last year. However, net NPA worsened slightly to 0.97 per cent from 0.84 per cent in the year ago period.
The private sector bank’s total deposits grew 27 per cent to Rs 10,552 crore from Rs 8,320 crore a year ago, while net advances were up 28 per cent at Rs 8,291 crore as compared to Rs 6,471 crore in June 30, 2013.
Net interest margin in the quarter improved to 3.71 per cent as against 3.44 per cent in Q1 FY14.
Capital adequacy ratio was at 13.63 per cent under Basel III as on June 30, 2014.
Murali Natrajan, Managing Director and CEO said, "We have made a good beginning. An increase in branch network is putting some pressure on Cost/Income ratio. NPAs remain in control, however, a few accounts in SME and mid corporate continue to have payment delays. We have a few challenges in stepping up fee income and are hopeful of improving the same in 6 to 9 months".
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.