DCB Bank Q1 result, profit rises 6.6%

Private sector lender DCB Bank's June quarter profit increased 6.6 percent to Rs 69.50 crore, backed by net interest income and lower provisions.

Profit in the year-ago quarter stood at Rs 65.22 crore.

Net interest income, the difference between interest earned and interest expended, grew by 17 percent to Rs 272.97 crore for the quarter ended June 2018, compared to Rs 233.16 crore in corresponding period last fiscal. Net interest margin contracted to 3.90 percent in Q1FY19 as against 4.23 percent in Q1FY18 and 4.09 percent in Q4FY18.

"Net advances grew 31 percent year-on-year to Rs 21,243 crore while deposits increased 31 percent to Rs 25,032 crore in Q1," the bank said.

Provisions for bad loans dropped 6.4 percent year-on-year and 14.4 percent sequentially to Rs 33.23 crore in April-June quarter.On the asset quality front, gross non-performing assets (NPA) in Q1 were higher at 1.86 percent against 1.79 percent in previous quarter while net NPA remained unchanged at 0.72 percent quarter-on-quarter.

Other income (non-interest income) dropped 2.94 percent year-on-year to Rs 82.83 crore while operating profit increased 3.66 percent to Rs 141.41 crore in Q1."Q1FY2019 included onetime treasury gain of Rs 10 crore as against Rs 21 crore in Q1FY2018," the bank said.