DCB Bank posted a net profit of ₹127 crore in Q3 FY24, up 11 per cent year-on-year but flat quarter-on-quarter.

Net interest income was up 6 per cent y-o-y and unchanged from a quarter ago to ₹474 crore. Net interest margin (NIM) for the quarter was 3.48 per cent.

Advances grew 18.2 per cent y-o-y to ₹38,951 crore. Disbursements in Q3 were at ₹4,307 crore, lower than ₹4,557 crore in the previous quarter and ₹4,598 crore in the previous year.

Deposits increased by 19.3 per cent y-o-y to ₹47,120 crore, of which term deposits accounted for ₹34,809 crore and CASA deposits for ₹12,311 crore.

Doubling balance sheet

“We continue to steadily add frontline capacity to support the growth momentum. Our focus remains to grow CASA and deposits, higher than the growth in advances. We aim to double the balance sheet in 3 to 4 years,” said MD and CEO Murali M. Natrajan.

Provisions for the quarter were ₹41 crore, which included ₹4.54 crore provided against the bank’s AIF investments as per RBI’s December 19 circular.

Gross slippages for the quarter were ₹428 crore, higher than ₹395 crore a quarter ago and ₹403 crore a year ago. Recoveries and upgrades were ₹339 crore in Q3 and the bank wrote off loans worth ₹2 crore.

Gross NPA ratio of the bank improved to 3.43 per cent from 3.62 per cent a year ago but was worse than 3.36 per cent a quarter ago. Net NPA ratio at 1.22 per cent was better than both 1.37 per cent in the previous year and 1.28 per cent in the previous quarter.

Capital adequacy ratio was at 15.72 per cent as of December 2023, with CET-I at 13.69 per cent.