Private sector lender DCB Bank on Tuesday reported a 17% year-on-year (y-o-y) increase in net profit to R43 crore in the December quarter on the back of improved interest income as well as non-interest income.
The bank’s net interest income (NII) — the difference between interest earned and interest expended — was up 30% y-o-y to Rs 122 crore on a 46% y-o-y jump in the non-interest income and a 23% y-o-y rise in interest income.
Asset quality improved slightly with gross non-performing assets (NPAs) as a percentage of gross advances at 1.87%, down from 1.9% in the September quarter. Net NPA ratio at 1% of net advances was a tad better than 1.07% reported in the second quarter.
Murali M Natrajan, the managing director and CEO at DCB Bank, said in a statement, “We are increasing focus on executing plan for profitable growth. We have to ensure that NPAs remain in control.”
He also said the bank’s retail and agriculture and inclusive banking businesses are in good shape and fresh slippages have reduced considerably in MSME & SME portfolio. “While corporate loan book and NPAs have been minimal, we may face challenges in the coming months,” the bank said in a statement.
The net interest margin (NIM) was up 15 bps y-o-y and stood at 3.7%. The bank saw a 34% y-o-y growth in the total income to Rs 170 crore.
While advances were up 29% y-o-y to Rs 9,491 crore, deposits stood at Rs 11,850 crore, up 24% y-o-y.