DCB Bank Q2 profit falls 10% on higher provisions, tax cost

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Private sector lender DCB Bank's September quarter net profit declined 10 percent to Rs 36.93 crore compared to a year-ago period despite strong net interest income, other income and operating profit. It was impacted by higher provisions and tax expenses.

Net interest income, the difference between interest earned and interest expended, grew by 27.44 percent to Rs 150 crore from Rs 117.7 crore year-on-year, led by strong advances growth. Net interest margin improved to 3.79 percent during the quarter from 3.72 percent in year-ago period.

Advances in September quarter surged 27 percent to Rs 11,180.87 crore and deposits spiked 24.4 percent to Rs 13,557.28 crore compared to same quarter last year.

Other income (non interest income) during the quarter increased 31.8 percent year-on-year Rs 48.70 crore and operating profit climbed 30.5 percent to Rs 78.10 crore.

Provisions for bad loans jumped 57.6 percent on yearly basis and 20.2 percent sequentially to Rs 21.67 crore, said the company in its filing, adding tax expenses rose nearly 4-fold to Rs 19.5 crore in September quarter 2015 from Rs 5.01 crore in corresponding quarter of last fiscal.

Asset quality was stable with gross non-performing assets (NPA) rising 9 basis points Y-o-Y (up 3 bps Q-o-Q) to 1.99 percent. Net NPA increased (down 6 bps on sequential basis) to 1.16 percent in Q2FY16 from 1.07 percent in Q2FY15.

At 15:28 hours IST, the scrip of DCB Bank was quoting at Rs 130.40, down Rs 7.05, or 5.13 percent on the BSE.