DCB Bank Q1 net profit at Rs 47 crore

The flat growth was on account of the one-time treasury gain of Rs 10 cr during the quarter

DCB Bank posted net profit of Rs 47.01 crore for the first quarter ended June 30, 2016, which was marginally up from Rs 46.87 crore posted in the corresponfing quarter of FY16. The flat growth was on account of the one-time treasury gain of Rs 10 crore in Q1 of FY17, against Rs 22 crore in the corresponding period in FY16.

The bank earned net interest income of Rs 177 crore for Q1, against Rs 140 crore in the corresponding period in FY16, showing a growth of 26.4 per cent. Murali M Natrajan, managing director & chief executive officer said compared to the 157 branches that they had as on June end 2015, the number of branches rose to 265 as of June-end 2016. “Since new branches take between 18-22 months to break-even, there has been some pressure on cost-to-income ratio,” he said.

The cost-to-income ratio reported was 60.9 per cent in the first quarter of FY17, compared with 56 per cent a year ago. The bank’s current account savings account (Casa) ratio was at 23.08 per cent as on June 30, 2016, against 23.04 per cent as on June 30, 2015, with savings accounts year-on-year growth rate of 21 per cent. Net interest margin for the reporting period stood at 4.05 per cent, against 3.81 per cent a year earlier.

On a year-on-year basis, asset quality saw a marginal improvement with gross non-performing assets (NPA) ratio decreasing to 1.72 per cent as on June 30, 2016, from 1.96 per cent a year ago. Net NPA ratio decreased to 0.87 per cent as on June 30, 2016, from 1.22 per cent as on June 30, 2015. However, sequentially, gross NPA rose marginally from 1.51 per cent in the fourth quarter of FY16 and net NPA from 0.75 per cent in the fourth of FY16. Natrajan, however, said there were no major slippages.

The bank's capital adequacy ratio was at 13.15 per cent as on June 30, 2016, with Tier-I at 11.92 per cent and Tier-II at 1.23 per cent, according to Basel-III norms. The lender was steadily executing its branch expansion plan, while continuously investing in technology capabilities — especially the frontline and customer experience, Natrajan added.