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.