Anand Rathi's research report on DCB Bank
Margin expansion and strong fee income counter-balanced opex, which led to ~10% sequential growth in DCB Bank’s Q4 operating profit. The better operating performance and modest provisions aided profitability, with the RoA coming at 1.02%, up 16bps q/q. Overall asset quality improved. Key positives: 1) strong traction in the balance sheet, 2) higher collection efficiency across key segments, 3) lower slippages and 4) a lower stress pipeline. With strong credit growth likely and normalising credit costs, earnings would improve.
Outlook
We retain a Buy, with a 12-mth TP of Rs181, 0.9x P/ABV on its FY26e book.
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