DCB Bank reports 3% YoY dip in Q1 profit

25 Jul 2024 , 12:47 PM

On Wednesday, July 24, 2024, DCB Bank Ltd reported a 3% year-on-year (YoY) decline in net profit for Q1 ending June 30, 2024. The net profit stood at ₹131.4 Crore compared to ₹126.9 Crore in the same quarter of the previous year.

Net interest income (NII), which represents the difference between interest earned from lending activities and interest paid to depositors, rose by 5.5%. It reached ₹496.6 Crore in Q1 FY25, up from ₹470.7 Crore in Q1 FY24.

The bank’s gross non-performing assets (NPA) increased to 3.33% in June 2024, up from 3.23% in March 2024. Net NPA also rose to 1.18% compared to 1.11% in the previous quarter.

At the time of writing on July 25, 2024 at 12:42 pm, shares of DCB Bank is currently trading at ₹127 which is a 4.57% gain than the previous close. DCB Bank stock has gained a total of 1.78% in the last one year, and 12% dip since the beginning of the year.

DCB Bank’s advances grew by 19% YoY, while deposits increased by 20%. The provision coverage ratio (PCR) stood at 76% as of June 30, 2024. Excluding gold loan NPAs, the PCR was 77.19%.

The capital adequacy ratio (CAR) remained robust at 15.95% as of June 30, 2024. This includes a Tier I capital ratio of 14% and a Tier II capital ratio of 1.95%, in compliance with Basel III norms.

Praveen Kutty, Managing Director and CEO, highlighted that the growth in both deposits and loans aligns with expectations. He noted that deposit growth has outpaced loan growth and expressed optimism about stabilizing the cost of funds and improving net interest margin (NIM) in the coming months. Kutty also anticipated steady improvements in productivity and profitability.

DCB Bank Limited is a private sector scheduled commercial bank in India, receiving its license from the Reserve Bank of India on May 31, 1995. It is part of the new generation banks in India.