Money & Banking

Interest income lifts DCB Bank net 31% in Q2

Our Bureau Mumbai | Updated on January 16, 2018 Published on October 14, 2016


Quality of loan book has remained stable, says MD

DCB Bank reported a 31 per cent increase in net profit at ₹48 crore in the July-September quarter, against ₹37 crore in the year-ago period.

The bank’s bottomline was supported by a healthy growth in net interest income and other income.

Net interest income (the difference between interest earned and interest expended) was up 27 per cent year-on-year (y-o-y) at ₹190 crore (₹150 crore in the year-ago quarter).

Other income, comprising commission, exchange & brokerage, profit on sale of investments, and profit on exchange transactions, was up 27 per cent at ₹62 crore.

Net advances grew 29 per cent y-o-y to ₹14,436 crore. Deposits were up 30 per cent at ₹17,685 crore.

Net interest margin for the reporting quarter improved to 3.96 per cent as against 3.79 per cent in the year-ago period.

Murali M Natrajan, MD and CEO, attributed the bank’s profitability to consistent delivery by the retail, SME and agriculture segments, resulting in advances increasing by 29 per cent. “We have been able to keep the NIM stable primarily because we have been able to grow our CASA book by 19 per cent….Last year in the same quarter, our provision for credit loss was approximately ₹19 crore. This quarter also the provision for credit loss is about ₹19 crore. So, we have grown the (loan) book, yet the quality of the book has remained stable,” he said.

Referring to his bank’s size and the distribution network it has put in place, Natrajan said: “We are confident that we can aim to double our loan book in three to three-and-a-half years.”

Gross non-performing assets increased to ₹255.40 crore from ₹231.30 crore in the preceding quarter.

DCB Bank shares closed at ₹122 apiece, down 1.09 per cent over the previous close on the BSE.

Published on October 14, 2016
This article is closed for comments.
Please Email the Editor