DCB Bank Q2 Results | Net profit rises 23% to ₹155 crore, NII up 7%
Private sector lender DCB Bank Ltd on Thursday (October 24) reported a 22.6% year-on-year (YoY) surge in net profit at ₹155.5 crore for the second quarter that ended September 30, 2024. In the corresponding quarter of the previous fiscal, DCB Bank posted a net profit of ₹126.8 crore, the bank said in a regulatory filing.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, grew 7%, coming at ₹509.2 crore against ₹475.7 crore in the corresponding quarter of FY24.
The gross non-performing asset (NPA) stood at 3.29% in the March quarter against 3.33% in the December quarter. Net NPA came at 1.17% against 1.18% quarter-on-quarter. DCB Bank reported a YoY advance growth of 19% and deposit growth of 20% for the second quarter ending September 30, 2024.
The provision coverage ratio (PCR) as of September 30, 2024, stood at 75.62%. When excluding gold loan NPAs, the PCR slightly improved to 76.41%, demonstrating the bank’s strong provision levels to manage asset quality.
The bank’s capital adequacy remained robust, with the Capital Adequacy Ratio (CAR) at 15.55% as of September 30, 2024, under Basel III norms. This included a tier I capital ratio of 13.65% and a tier II capital ratio of 1.90%. As of September 30, 2024, DCB Bank’s balance sheet stood at ₹68,955 crore.
The bank’s advances totalled ₹44,465 crore, with a focused approach to secured small-ticket lending. For Q2 FY25, the cost to average assets was 2.75%, while the cost-to-income ratio was 64.26%. DCB Bank reported a return on assets (ROA) of 0.93% and a return on equity (ROE) of 12.65%.
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Praveen Kutty, Managing Director and CEO, said, “Our growth trajectory continues to be robust both in deposits and advances. Greater focus on analytics and engagement to give us benefits on the fee line. Recoveries and upgrades continue to be encouraging. We are working on improving the productivity and looking ahead we expect steady improvement in profitability.”
The results came after the close of the market hours. Shares of DCB Bank Ltd ended at ₹110, down by ₹1.75, or 1.57%, on the BSE.
(Edited by : Shoma Bhattacharjee)
