Moneycontrol Bureau
Private sector lender DCB Bank's first quarter (April-June) profit after tax increased 5 percent year-on-year to Rs 46.9 crore, aided by lower provisions and higher other income. However, profit was restricted by slow growth in net interest income.
Net interest income (the difference between interest earned and interest expended) rose 1 percent to Rs 140.38 crore in the quarter ended June 2015 from Rs 138.98 crore in the year-ago period. Other income (non interest income) jumped 83 percent to Rs 63.12 crore from Rs 34.49 crore during the same period.
Profit was in line but net interest income came in lower than expectations. A CNBC-TV18 poll has estimated profit at Rs 46.40 crore and net interest income at Rs 147.4 crore for the quarter.
Provisions for bad loans declined 21.4 percent year-on-year (up 26 percent sequentially) to Rs 18.03 crore during April-June quarter.
Tax expenses rose by 81.4 percent to Rs 24.76 crore and operating expenses jumped 23.4 percent to Rs 113.84 crore compared to same quarter last year.
Asset quality of the bank worsened as gross non performing assets (NPA) climbed to 1.96 percent in June quarter from 1.76 percent in March quarter and 1.78 percent in the year-ago period. Net NPA also increased to 1.22 percent in Q1FY16 from 1.01 percent in Q4FY15 and 0.97 percent in Q1FY15.
The scrip of DCB Bank closed at Rs 141.50, down Rs 5.65, or 3.84 percent on the Bombay Stock Exchange.
Posted by Sunil Shankar Matkar
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