DCB Bank Q2 earnings – A lot of moving parts
October 22, 2019 / 12:25 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
- Loan growth weak, margins stable
- Cost-to-income ratio declines
- Asset quality deteriorates with high slippages
- Valuations full, earnings growth to drive stock upside
DCB Bank, a small-sized private sector bank, reported a mixed set of numbers in the second quarter of FY20. Net profit growth was healthy at 24 percent YoY led by controlled operating expenses. However, lower advances growth and deterioration in asset quality undermined the bank’s performance.
With a balance sheet size of Rs 37,018 crore at the end of September, DCB...