Money & Banking

DCB Bank Q4 net profit down 29 per cent

Our Bureau Mumbai | Updated on May 23, 2020

File Photo of DCB Bank Managing Director and CEO Murali Natrajan.   -  BusinessLine

Private sector DCB Bank posted a 29 per cent fall in its net profit to Rs 69 crore in the fourth quarter of 2019-20 with a sharp rise in provisions as against a net profit was Rs 96 crore a year ago.

Its total income grew by eight per cent to Rs 434 crore in the quarter ended March 31, 2020 as compared to Rs 400 crore a year ago.

Net interest income rose by eight percent to Rs 324 crore while non-interest income increased by 11 per cent to Rs 110 crore in the January to March 2020 quarter.

Provisions surged to Rs 118.24 crore in the fourth quarter of last fiscal versus Rs 34.78 crore a year ago.

“Both 2019- 2020 and fourth quarter profit before tax was impacted by Rs 63 crore Covid-19 Regulatory Package Provision. The bank conservatively made more provision than required as per guidelines,” DCB Bank said in a statement on Saturday.

In 2019-20, the bank’s net profit rose by a modest four per cent to Rs 338 crore from Rs 325 crore in 2018-19.

Asset quality showed stress

Gross non-performing assets increased to 2.46 per cent of gross advances as on March 31, 2020 from 2.09 per cent a year ago. Net NPAs increased 1.16 per cent of net advances as on March 31, 2020 from 0.96 per cent a year ago.

Murali M Natrajan, Managing Director and CEO, DCB Bank said “Our main aim in the next two quarters would be to carefully navigate through the difficult and uncertain environment focusing on handling potential portfolio stress, assisting loan customers within regulatory guidelines, effect cost reduction and maintain adequate liquidity.”

Published on May 23, 2020

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