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DCB's fourth quarter net profit doubled from about Rs 17 crore to Rs 34 crore year-on-year driven by higher interest income. MD & CEO Murali Natrajan said the bank's full year growth in advances stood at 25 percent and deposits growth at 32 percent.
In an interview to CNBC-TV18, Murali M Natrajan, managing director and chief executive officer, DCB gives his expectationss for the bank's performance.
DCB CFO Bharat Sampat tells CNBC-TV18 that the bank's chief source of pressure emanates from last quarter's priority sector lending which was at lower than commercial rates.
Development Credit Bank is likely to report a profit after tax of Rs 13 crore in the third quarter of FY12, a massive growth of 60% as compared to Rs 8.2 crore in the corresponding quarter of last fiscal.
Unicon Investment has come out with its earning estimates on banking sector for the quarter ended September 2011. According to the research firm, Development Credit Bank (DCB) September quarter net interest income is expected to go up by 25.2% at Rs 58.1 crore, year-on-year, (YoY) basis.
In an interview with CNBC-TV18, Murali M Natrajan, MD & CEO of DCB highlighted that it's net non-performing assets (NPAs) are below a 1%. He said that the bank has provided 100% of the NPAs on unsecured personal loans. So, the NPAs are expected to halve by the end of this year.