DCB Bank Q1 profit rises 39% to Rs65 crore

Small private lender DCB Bank posted a 38 percent rise in profit after tax of Rs 65 crore in the first quarter of financial year 2017-18. The profit in the same quarter a year ago was at Rs 47 crore.

During the period, net interest income (NII) or difference between interest earned and expended) grew to Rs 233 crore, up 32 percent from Rs 177 crore in the first quarter of FY17.

Non-interest income increased to Rs 86 crore as compared to Rs 60 crore for the same period driven by one-time treasury gain of Rs 21 crore as against Rs 10 crore last year.

The bank’s net interest margin improved to 4.23 percent from 4.05 percent.

The gross non-performing assets (NPAs) showed a slight uptick with the gross NPA ratio at 1.74 percent of total advances as on June 30, 2017 as compared to 1.72 percent last year. Similarly, net NPA ratio also edged up to 0.92 percent as compared to 0.87 percent a year ago.

Provisions towards the bad loans also rose to Rs 35 crore from Rs 21 crore.

As on June end, both net advances and deposits grew by 22 percent to Rs 16,266 crore and Rs 19,155 crore, respectively.

Murali M. Natrajan, the bank’s Managing Director and CEO said, "We have almost completed the branch expansion plan that commenced in October 2015. As of now we are satisfied with the progress made. We continue to remain cautious in terms of balancing growth and portfolio quality.”

During the quarter, the new generation private sector bank increased its branch network by 28 branches to 290 across 19 states and 3 union territories.