1. DCB Bank Q1 net up 5% at R47 cr

DCB Bank Q1 net up 5% at R47 cr

Private sector lender DCB Bank on Tuesday reported a 5% y-o-y increase in net profit to R47 crore for the three months to June 2015 on the back of lower provisions.

By: | Mumbai | Published: July 15, 2015 12:15 AM

Private sector lender DCB Bank on Tuesday reported a 5% y-o-y increase in net profit to R47 crore for the three months to June 2015 on the back of lower provisions.

Its provisions stood at R18 crore, compared to R23 crore in Q1 FY15.

The bank’s net interest income (NII) was up 0.7% y-o-y in Q1 FY16 to R140 crore owing to a 24% y-o-y jump in interest expended.

The lender’s asset quality deteriorated in Q1 with its gross non-performing assets (NPAs) as a percentage of gross advances at 1.96%, up 20 basis points (bps) from Q4FY15. Its net NPA ratio at 1.22% of net advances was 25 bps higher than Q4 FY15.

Murali M Natrajan, managing director and CEO, DCB Bank, said in the statement, “We are making cost investments for building growth momentum. It is not easy to grow profitably in a challenging environment.”

He added that there is keen competition amongst banks and NBFCs and DCB Bank will continue to be watchful of corporate and SME portfolios. Its net interest margin in Q1 was up 9 bps sequentially and stood at 3.81%. The bank also saw a 17% y-o-y growth in total income to R204 crore in Q1FY16.

  1. No Comments.

Go to Top