Money & Banking

DCB Bank records 17% jump in profit

Our Bureau Mumbai | Updated on July 16, 2019 Published on July 16, 2019

Murali M Natrajan, MD & CEO, DCB Bank   -  Bijoy Ghosh

Private sector lender DCB Bank has reported a 16.63 per cent increase in net profit at ₹81.06 crore for the first quarter of the fiscal, with net interest income witnessing a robust growth. The bank had registered a profit of ₹69.50 crore in the year-ago period.

Its total income rose by 20.4 per cent to ₹944.46 crore (₹784.26 crore). Net interest income grew 11.7 per cent to ₹305 crore during the quarter under review, against ₹273 crore posted in the same period last fiscal. Non-interest income grew 4.81 per cent to ₹87 crore.

The net interest margin was 3.67 per cent in the first quarter, against 3.9 per cent a year ago. “NIM was lower partially on account of higher cost of long-term refinance options,” DCB Bank said in a statement on Tuesday.

Murali M Natrajan, Managing Director and CEO, DCB Bank, said, “We are focusing on granular retail term deposits in order to further improve our deposit profile. Some margin pressure will be felt for two more quarters, beyond which we expect stability due to the repricing profile of long-term refinance and renewal cycle of customer deposits.”

The bank’s provisions rose 22.3 per cent to ₹40.64 crore in the first quarter of the fiscal from ₹33.23 crore in the same period in 2018-19.

Gross non-performing assets stood at ₹476.40 crore or 1.96 per cent of gross advances against 1.86 per cent a year ago. Net NPA was at 0.81 per cent of net advances, compared to 0.72 per cent a year ago.

The bank’s scrip gained 1.27 per cent to close at ₹238.80 apiece on BSE on Tuesday.

Published on July 16, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.