DCB Bank on Thursday reported a 19.8% rise in its net profit to Rs 157 crore for the June quarter despite a sharp rise in provisions. The private sector lender had posted a profit of Rs 131 crore in the year-ago period.
DCB Bank Financials
The net interest income grew 17% to Rs 581 crore and the net interest margin (NIM) stood at 3.20%. In the January-March period, the NIM was at 3.29%.
Other income soared 65% to Rs 236 crore. On a sequential basis, other income rose 8%.
Advances were up 21.4% to Rs 51,215 crore and deposits rose 20.02% to Rs 62,039 crore. The current account and savings account deposits formed 23.32% of total deposits. Disbursements in the reporting quarter fell to Rs 4,973 crore from Rs 5,568 core a quarter ago. This was due to lower disbursements in the mortgage space.
Provisions and contingencies rose over 300% year-on-year to Rs 115 crore.
“As on June 30, 2025, the bank held floating provision on advances amounting to Rs 182.92 crore, besides provisions for standard assets and specific non-performing assets. Further, as on June 30, 2025, the bank held floating provision on investments amounting to Rs 10.37 crore (Rs 9.43 crore as on March 31, 2025, and Rs 6.76 crore as on June 30, 2024),” the bank said.
The provision coverage ratio stood at 74.04% as on June 30.
Higher provisions were due to higher slippages. In the reporting quarter, the bank saw fresh slippages of Rs 580 crore, compared with Rs 365 crore in the March quarter.
What do executives say?
“We are focused on reducing the slippage ratio and continue to ensure that cost to average assets ratio improves even further,” Praveen Kutty, managing director and CEO, said in a release. Most of the bad loans were from the mortgage segment, followed by agriculture and inclusive banking.
The gross non-performing asset (NPA) ratio stood at 2.98% as on June 30, against 2.99% a quarter ago, while the net NPA ratio increased to 1.22% from 1.12% in the March quarter. The Basel-III capital adequacy ratio stood at 16.66% as on June 30.