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Private sector lender DCB Bank registered a 24 per cent increase in its net profit for the second quarter of the current fiscal. The bank registered a net profit of ₹91 crore as against ₹73 crore in the quarter ended September 30, 2018.
Its net interest income grew by 11 per cent to ₹313 crore in the July–September quarter as against ₹282 crore in the same period a year ago. Net interest margin (NIM) for the second quarter was 2.67 per cent, the same as the first quarter this fiscal.
Non-interest income grew by 38 per cent to ₹101 crore in the quarter under review.
Gross non-performing assets stood at 2.09 per cent of gross advances as on September 30, 2019 compared with 1.84 per cent a year ago. Net NPA ratio remained at 0.96 per cent as on September 30 compared with 0.7 per cent in the corresponding quarter last year.
Murali M Natrajan, Managing Director and CEO, DCB Bank, said, “Our deposit profile shows steady growth in small ticket retail segment. The bank’s NIM is stable,” he said, adding that the current level of economic activity poses a challenge, both for growth opportunities as well as NPA.
“However, given our secured granular loan portfolio, the recovery and upgrade pipeline is good, which helps control the overall NPAs,” he added.
As on September 30, 2019, the bank’s deposits grew by 12 per cent to ₹29,363 crore. Net advances also rose 12 per cent to ₹24,798 crore by the end of the second quarter this fiscal.
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