DCB Bank Q2 net profit jumps 73% to Rs 112 crore | The Financial Express

DCB Bank Q2 net profit jumps 73% to Rs 112 crore

The bank’s pre-provisioning operating profit (PPOP) saw a muted 4% y-o-y growth to Rs 183 crore as its non-interest income rose by 1% to Rs 99 crore.

DCB Bank Q2 net profit jumps 73% to Rs 112 crore
Net interest margin (NIM) expanded by 51 basis points on a y-o-y basis to 3.88% as of September 30.

Private sector lender DCB Bank on Saturday announced a 73% year-on-year increase in its net profit for the three months ended September 30 to Rs 112 crore led by 64% fall in provisions, which stood at Rs 31 crore during the quarter.

The bank’s pre-provisioning operating profit (PPOP) saw a muted 4% y-o-y growth to Rs 183 crore as its non-interest income rose by 1% to Rs 99 crore.

Net interest margin (NIM) expanded by 51 basis points on a y-o-y basis to 3.88% as of September 30. Net interest income (NII) grew by 27% y-o-y to Rs 411 crore on advances growth of 18% to Rs 31,291 crore. Deposits, too, grew by 16% y-o-y to Rs 36,960 crore. The bank’s capital adequacy ratio was at 17.91% as of September 30.

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Gross non-performing asset (NPA) ratio was at 3.89% as on September 30, lower by 84 bps y-o-y and 32 bps q-o-q while net NPA was at 1.54% as on September 30, lower by 112 bps y-o-y and 28 bps sequentially. Provision coverage ratio (PCR) as on September 30 was at 72.83%.

“Upgrades and recoveries continue to be strong. Restructured portfolio performing in line with expectations. Gross NPA and net NPAs are steadily declining,” Murali Natrajan, MD and CEO of the bank, said in a statement.

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First published on: 06-11-2022 at 04:30 IST