DCB Bank Q3 results: Stock falls over 6% as NIM contracts in December quarter; should you buy?
DCB Bank fell over 6 percent on Thursday after the lender witnessed a decline in its net interest margin (NIM) for the quarter ended December (Q3FY24). Its NIM for Q3FY24 declined sharply 21 bps QoQ to 3.48 percent. The lender posted an 11.2 percent year-on-year (YoY) rise in its net profit to ₹126.6 crore for the third quarter of FY24, as against ₹113.9 crore in the same period last year.
However, sequentially, the net profit was flat from ₹126.79 in the September quarter (Q2FY24). Meanwhile, the bank's net interest income (NII) registered a growth of 6.3 percent YoY to ₹474 crore versus ₹446 crore in the same quarter last year. Sequentially, NII was little changed from ₹476 crore in Q2FY24.
The stock fell as much as 6.11 percent to its intra-day low of ₹135.10. It is now over 17 percent away from its 52-week high of ₹163.40, hit earlier this month, on January 8, 2024. Meanwhile, it is still trading almost 40 percent higher than its 52-week low of ₹96.70, hit on March 16, 2023.
The stock has advanced over 17 percent in the last 1 year and just 2.5 percent in January till date. On the asset quality front, the lender's gross non-performing asset (NPA) ratio for the quarter under review stood at 3.43 percent, compared to 3.36 percent in the previous quarter (Q2FY24). Its net NPA ratio improved QoQ to 1.22 percent, down from 1.28 percent in the September quarter.
The capital adequacy ratio (CAR) for the lender, as of December 31, 2023, stood at 15.72 percent. Murali M. Natrajan, Managing Director & CEO of DCB Bank, commented on the results, stating, “We are pleased with the sustained growth in our net profit and net interest income.
Read more on livemint.com
