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Development Credit Bank reported a net profit of Rs 8.8 crore for the quarter ended June 30, 2011, against a net loss of Rs 2.9 crore in the corresponding year-ago quarter.
Deposits grew by 17 per cent to Rs 5,980 crore, while advances grew by 22 per cent to Rs 4,234 crore as on June 30, 2011, said a press release issued by the bank.
Mr Murali Natrajan, MD and CEO, DCB said, “The opportunity to grow advances is limited in an environment when cost of funds continues to increase. We need to take measured steps and calibrate growth for the next few months.''
In the June ended quarter, the net interest margin saw a slight decline to 3.1 per cent (3.12 per cent). Capital adequacy was at 12.92 per cent (13.8 per cent).
The ratio of net non-performing assets to total assets improved to 1.19 per cent (2.52 per cent).
The provisions continued to decline and fell to Rs 7.7 crore against Rs 25.5 crore last year.
The bank got approval from the Reserve Bank of India to open 10 new branches in May 2011. These include six branches in the metros and four in semi-urban and rural areas, the release said.
On the BSE, the shares of DCB closed at Rs 61.6 on Thursday, down 4.5 per cent from the previous close.
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