DCB Bank Q2 profit jumps 73% to Rs 112 crore on reduction in bad loans

Private sector DCB Bank on Saturday posted a 73 per cent jump in net profit at Rs 112 crore for the quarter ended September 2022 on the back of reduction in bad loans.

The bank had reported a profit of Rs 63 crore in the year-ago period.

Total income of the lender during the July-September quarter of FY23 rose to Rs 510 crore against Rs 421 crore in the corresponding period of FY22, DCB Bank said in a statement.

Net interest income increased to Rs 411 crore as against Rs 323 crore in the same period of the previous fiscal.

The bank's gross non-performing assets (NPAs) declined to 3.89 per cent of the gross advances at the end of September 2022, from 4.73 per cent at September-end 2021.

Net NPAs also came down to 1.54 per cent from 2.66 per cent.

The Provision Coverage Ratio (PCR) as on September 30, 2022 was at 72.83 per cent. PCR without considering gold loan NPAs stood at 74.21 per cent, it said.

Capital adequacy continues to be strong, it added. As on September 30, 2022, the capital adequacy ratio was at 17.91 per cent (with Tier I at 14.94 per cent and Tier II at 2.97 per cent, as per Basel III norms).