DCB Bank shares gained as much as 7.32 per cent in the morning trade on Wednesday on better-than-expected Q3 results.
The bank announced its Q3 result on Tuesday post market hours. For the quarter ended December 2015, DCB Bank reported a 3 per cent decline in its net profit figures at Rs 41.20 crore against Rs 42.50 crore in the same period last year. Reliance Securities in a research note said, “DCB Bank result was above our expectation led by the strong growth in core operating income along with lower provision expenses.”
At 11.45 am, DCB Bank was trading 2.80 per cent up at Rs 77.20. The scrip opened at Rs 79 and had touched a high and low of Rs 80.60 and Rs 76.75, respectively, in trade so far. Later, the share price of the of the company settled 4.79 per cent up at Rs 78.70.
Gross non-performing assets (NPA) as a percentage of total advances of DCB Bank declined marginally to 1.98 per cent at the end of December quarter (Q3FY16), from 1.99 per cent in the previous quarter. Net NPA declined to 1.12 per cent from 1.16 per cent on a sequential basis.
In the quarter, its net interest margin stood at 3.96 per cent as against 3.70 per cent earlier. Its net interest income grew by 32 per cent to Rs 160 crore as against Rs 122 crore last year.
The bank also plans to set up 150 additional branches within 24 months.
In the past one year, DCB Bank shares fell 39.21 per cent to Rs 75.10 on January 12. Sensex fell 10.52 per cent during the same period.