DCB Bank Q1 Results: Net profit rises 31% to ₹127 crore, NII up 24%; gross NPA declines YoY

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DCB Bank Q1 Results: DCB Bank announced its April-June quarter results for fiscal 2023-24 (Q1FY24) on July 28, reporting a rise of 31 per cent in consolidated net profit at ₹127 crore, compared to ₹97 crore in the corresponding period last year. The bank's net interest income (NII) - the difference between interest earned and interest expended, during the first quarter of current fiscal stood at ₹470.7 crore, reporting a growth of 24.7 per cent, compared to ₹374 crore in the year-ago period. On a sequential basis, the gross non-performing assets (GNPA) of the bank jumped to 3.26 per cent as compared to 3.19 per cent in the preceding January-March quarter of fiscal 2022-23.

However, gross NPA declined year-on-year (YoY), compared to 4.21 per cent reported in the corresponding quarter last year. Similarly, the net non-performing assets (NNPA) of the bank spiked sequentially to 1.19 per cent, compared to 1.04 per cent in the preceding January-March quarter of fiscal 2022-23. However, net NPA declined on a YoY basis, compared to 1.82 per cent reported in the June quarter of fiscal 2022-23.

“The bank delivered stable performance in Q1 FY 2024. Net interest margin and NPAs were in line with our expectation. Core products - mortgages, agri and nclusive banking, construction finance and co-lending delivered strong YoY growth".

The provision coverage ratio (PCR) as on June 30, 2023 was at 77.07 per cent and PCR without considering the gold loans NPAs came in at 77.4 per cent. The capital adequacy ratio stood at 17.09 per cent (with tier I at 14.78 per cent and tier II at 2.31 per cent as per Basel III norms). On July 27, shares of DCB Bank settled 0.89 per cent lower at ₹128.55 apiece on the BSE.