DCB Bank Q1 net profit likely up 4%, asset quality steady

DCB Bank’s net profit is likely to see a marginal growth of 4 percent at Rs 46.40 crore in April-June quarter from Rs 44.60 crore in corresponding quarter last fiscal. The bank will announce its Q1 results on July 14.

According to a CNBC-TV18 poll, its net interest income (NII) may rise 6 percent to Rs 147.4 crore versus Rs 139 crore in year-ago period.

In Q4FY15 profit was up 61 percent year-on-year mainly due to tax writeback of Rs 9.3 crore. NII growth, analysts say, may come off on an annual basis mainly due to high base which contained one off income. In Q1FY15, there was one off interest income of Rs 30.4 crore resulting in NII rising 67 percent (YoY) to Rs 139 crore.

Meanwhile, asset quality expected to remain stable in Q1FY16, it had improved 11 basis (Q-o-Q) in Q4 last fiscal. Otherwise advances growth may remain steady, it was up 29 percent in Q4 (Y-o-Y) and 10 percent (Q-o-Q).