24337 Investors following DCB. Share this News with them.
0
Like this story, share it with millions of investors on M3
DCB Q2 PAT up 3-fold on higher interest income
Development Credit Bank, DCB has announced its second quarter results. The company's Q2 net profit was up at Rs 13.32 crore versus Rs 4.8 crore, year-on-year, YoY.
Supported by higher interest income, private sector lender Development Credit Bank 's (DCB) second quarter (July-Aug) net profit shot up nearly three fold to Rs 13.3 crore year-on-year. Net interest income rose more than 28% to Rs 59 crore Y-o-Y. With this, it became the first lender to declare its September quarter results.
During the three months period, net non-performing assets (NPAs) dropped by 22 basis points to 0.97% quarter-on-quarter.Gross NPAs too fell by 15 bps to 5.75%. Better asset quality seems to have aided bank's interest margin. Consequently, its net interest margin (NIM) improved sequentially from 3.10% to 3.41%.
It is worth mentioning here that repeated rate hikes by the Reserve Bank of India (RBI) led to a general concern about banks' asset quality.
DCB's loan book, however, grew 12% to Rs 4,315 crore, which is below the 18% mark, industry's credit growth projection set by RBI. Deposits expanded 14% to Rs 6,262 crore. Current account and savings account or CASA ratio stood at 33.3% (out of total deposits) as against 34.6% a year back. CASA helps bring down the cost of funds as banks only pay 0-4% interest.
In June quarter, the bank again turned its business profitable after a short spell of losses. It reported a net profit of Rs 8.8 crore compared to a net loss of Rs 2.9 crore during the same period in 2010.
