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DCB Bank’s net profit declined 9.97 per cent to ₹82.29 crore in the second quarter of the fiscal from ₹91.41 crore a year ago.
“Profit before tax for the quarter was impacted by ₹48 crore Covid-19 Regulatory Package Provision. In order to further strengthen the balance sheet, the bank intends to make conservative provisions given the current environment,” DCB Bank said in a statement on Saturday.
Total income also declined to ₹970.98 crore in the quarter ended September 30, 2020 from ₹980.59 crore a year ago.
Its net interest income however increased by seven per cent to ₹334 crore in the second quarter of the fiscal from ₹313 crore a year ago. Non interest income declined to ₹92 crore in the July to September 2020 quarter from ₹101 crore in the same period last fiscal.
The bank’s provisions more than doubled to ₹113.10 crore in the second quarter of the fiscal versus ₹43.27 crore a year ago.
“As on September 30, 2020, the bank is holding Covid-19 provision of ₹143 crore, floating provision of ₹103 crore, specific standard assets provision of ₹40 crore and standard assets provision of ₹110 crore,” the bank said.
The gross NPA as on September 30 was at 2.27 per cent of gross advances as against 2.09 per cent a year ago and net NPA was at 0.83 per cent of net advances at the end of the second quarter this fiscal versus 0.96 per cent as on September 30, 2019.
If the bank had classified borrowers accounts as NPA (₹29 crore) after August 31, 2020 the Bank’s Gross NPA Ratio and net NPA Ratio would have been 2.39 per cent and 0.92 per cent respectively, it said.
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