DCB Bank reported a 22 per cent increase in second quarter net profit at ₹59 crore against ₹48.5 crore in the year-ago period.

Net interest income was up 30.5 per cent year-on-year (y-o-y) to ₹248 crore (₹190 crore in the year-ago period). Other income edged up to ₹65 crore (₹62 crore).

Net interest margin (NIM) in the reporting quarter was higher at 4.22 per cent (3.96 per cent). The bank, in a statement, said interest on income tax refund has not been included in NIM computation.

During the reporting quarter, deposits were up 16 per cent y-o-y to ₹20,567 crore. Advances rose 20.5 per cent y-o-y to ₹17,395 crore.

Murali M Natrajan, Managing Director and CEO, said, “...We remain cautious with respect to loan growth. We have to continue to be vigilant in managing credit quality.”

Provisions (other than tax) and contingencies nudged up to ₹30 crore (₹26 crore).

Gross non-performing assets (GNPAs) rose to ₹316 crore as at September-end 2017 from ₹255 crore in the year-ago period.

The gross NPA ratio edged up to 1.80 per cent (1.75 per cent).