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DCB Bank Q1 Net Profit Rises 20% YoY; Delivers 17% NII Growth

31 Jul 2025 , 03:56 PM

DCB Bank’s stock took a sharp hit on July 31, slipping as much as 5.10% during the day, after its quarterly earnings failed to inspire confidence among investors. The private lender reported a 17% rise in Net Interest Income (NII) for the April–June period, which came in at ₹581 crore. Despite the growth, margins were under pressure.

Net profit also rose 20% year-on-year to ₹157 crore, largely helped by a strong jump in other income, which increased to ₹236 crore from ₹143 crore in the same quarter last year.

On the asset quality front, there wasn’t much movement. Gross NPAs were steady at 2.98%, almost flat compared to 2.99% at the end of March. However, Net NPAs ticked up slightly to 1.22% from 1.12% in the previous quarter.

What caught the Street’s attention was the sharp rise in provisions, which more than quadrupled from the same quarter last year. The bank set aside ₹115.1 crore in Q1FY26, up from ₹67.2 crore in Q4 and just ₹28.4 crore a year ago.

Slippages also saw a noticeable jump, coming in at ₹580 crore, compared to ₹365 crore last quarter and ₹372 crore in the year-ago period, a signal that fresh stress is building up in parts of the loan book.

Meanwhile, the bank’s Net Interest Margins (NIMs) shrank by 19 basis points, down to 3.2% from 3.39% in the March quarter, adding further pressure on profitability.

Return on Assets (RoA) also reflected the strain, dropping to 0.81% on an annualised basis, versus 0.95% in Q4 and 0.82% a year ago. On the business front, though, DCB Bank continued to grow at a healthy clip. Loan book expanded 21% to ₹51,215 crore, while deposits climbed 20% year-on-year to ₹62,039 crore.

For feedback and suggestions, write to us at editorial@iiflcapital.com

Related Tags

  • Bank News
  • DCB Bank
  • DCB Bank News
  • Indian Market News
  • quarterly result
  • Quarterly result Update
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