DCB Bank Ltd's Q4FY18 standalone net profit rises 21.45% yoy to Rs64.20cr : in-line with estimates

India Infoline Research Team | April 16, 2018 17:07 IST

DCB Bank Ltd Q4FY18

Standalone Results Q4FY18: ( cr)

Q4FY18 YoY (%)
NII 263.74 19.7
NPA (%) 1.8 20
Provisions 38.81 14.4
Net Profit (adjusted) 64.20 21.5
***NPA change is bps
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Reco. Price

174

Last updated on

06-Apr-2018


DCB Bank’s NII for Q4FY18 has improved by 19.7% to Rs263.7cr against Rs220.3cr (yoy). It’s net profit was in-line with estimates, which has improved by 21.5% to Rs64.2cr against Rs52.9cr yoy. GNPA for Q4FY18 was at 1.79% against 1.89% qoq,, which has declined by 10bps. NNPA for the quarter stood at 0.72% against 0.87%, which declined by 15bps qoq. Its capital adequacy ratio for the quarter stood at 16.47%. 
  • The bank has recommended a dividend of Rs0.75 per equity share of Rs10/- each.
  • Net advances for the quarter stood at Rs20,336cr, up by ~29% yoy.
  • Management has guided for doubling the loan book in 3-3.5 years time frame.
  • The bank saw loan growth across the verticles, mortgage segment, which contributes ~40% of its book grew by ~20% for the quarter.
  • The average ticket size of SME portfolio is 40-50 lakh. Mortgage portfolio breakup is ~70% LAP and ~30% Home Loans.
  • By Q4FY19E, management expects cost to income ratio at 55% led by leveraging head counts and branches besides taking help of analytics and big data.
  • Retail deposits to total deposits ratio and CASA ratio as on FY18 end stood at 74% and 24% respectively.
  • Over next couple of years the bank is targeting Rs27cr CASA per branch from Rs15cr in FY18.
  • Its cost-to-income ratio and PCR for Q4FY18 stood at 59.38% and 75.72% respectively.
  • NIM, yield on advances and cost of funds for FY18 stood at 4.16%,11.41% and 6.51% respectively.
  • The bank by FY20E is targeting 1% RoA and 14% RoE. 
  • The bank's has 318 branches with an average cost of Rs50lakh per branch.

Technical View:

DCB Bank Ltd ended at Rs. 178.85, up by 2.55 points or 1.45% from its previous closing of Rs. 176.30 on the BSE.
The scrip opened at Rs. 177.75 and touched a high and low of Rs. 180.30 and Rs. 176 respectively. A total of 19,50,915 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.


BSE 181.20 [0.60] ([0.33]%)
NSE 180.85 [0.40] ([0.22]%)

***Note: This is a NSE Chart

 

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