Murali M Natrajan, MD & CEO, DCB Bank said the aim is to bring down the cost to income ratio to 55 percent by March 2019 as guided two years ago aided by all the new branches.
The new branches usually breakeven by 18-22 months, said Natrajan, adding "We have enough experience now putting branches that give us confidence that we are moving on the right path."
The bank in its first quarter ended June, 2017 reported an excellent topline growth, NIIs saw growth of about 31-32 percent and profit grew 20 percent but the slippages for Q1 came in at the highest level in the last 9 quarters but low cost deposits and fund raising aided net interest margins.
Natarajan said the bank would look to keep gross non performing assets (GNPAs) below 2 percent and net non-performing assets (NPAs) below 1 percent and keep slippage ratio at around 2 percent going forward.
He is very upbeat because of the banks diversified portfolio and good performance by branches.
However, with regards to net interest margins he does expect to maintain them at 4.2 percent levels seen in Q1 but would be comfortable with 3.73-3.75 percent levels.
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