Development Credit Bank Ltd(DCB Ltd) on Friday reported 52 per cent rise in net profit at Rs 17.3 crore in the quarter ended March 31 against Rs 11.4 crore in the year-ago period on the back of lower provisioning and overall reduction in costs.
“We have seen all-round improvement in our performance in Q4 as well as during the entire fiscal, driven by lower provisioning, reduction in overall cost and better quality of our loan books,” said Mr Murali M Natrajan, Managing Director and CEO, DCB Bank.
During the quarter under review, the bank’s gross NPA ratio pruned to 4.40 per cent at Rs 7 crore from 5.85 per cent or Rs 11 crore. Its net NPA ratio improved to 0.57 from 0.96 per cent.
For the full year, the bank, which primarily focuses on MSMEs, SMEs and retail mortgages, saw its net profit rises to Rs 55.1 crore from Rs 21.4 crore, driven by lower provisioning of Rs 29 crore as against Rs 65 crore.
The lender saw its cost of funds going up to 7.57 per cent from 7.16 per cent in Q4, bringing down its NIM to 3.12 per cent from 3.15 per cent. For the full fiscal, NIM was 3.25 per cent as against 3.13 per cent last fiscal.