DCB Bank posted a nearly three-fold rise in net profit at ₹97 crore for Q1FY23, albeit on a small base.

Advances of the bank rose 18 per cent year-on-year to ₹45,221 crore, whereas deposits were up 15 per cent at ₹35,081 crore.

Net interest income for the quarter was at ₹374 crore, better than ₹309 crore in the corresponding quarter of the previous year, but slightly lower than ₹380 crore in Q4FY22. Non-interest or other income was at ₹92 crore, lower than both ₹115 crore a quarter ago and ₹121 a year ago.

NPA ratios

NPA ratios of the bank improved both year-on-year and q-on-q. The gross NPA ratio stood at 4.21 per cent as of June 30, better than 4.32 per cent a quarter ago and 4.91 per cent a year ago. The net NPA ratio at 1.82 per cent, too was better than 1.97 per cent in the previous quarter and 2.84 per cent in the previous year.

“Monthly NPA slippages (excluding Gold Loans) are steadily moving towards pre Covid-19 levels. Recoveries and upgrades continue to be strong. Investments in frontline and branches are expected to increase the growth trajectory in the coming months,” MD and CEO Murali M. Natrajan was quoted as saying in bank’s release.

Provision coverage ratio of the bank stood at 69.5 per cent, but excluding gold loan NPAs was higher at 73.39 per cent. Capital adequacy ratio was at 18.5 per cent, of which tier-I capital was 15.4 per cent.

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