 "DCB Bank to go slow with branch expansion plan")
Private-sector lender DCB Bank today said it will go slow with its branch expansion plan and will open around 150 additional branches over a period of 24 months instead of 12 months announced two days back.
On October 13, the lender said it plans to double its branch network within 12 months. It announced plans to add 150+ branches to its existing network of 160 branches.
The bank today altered its aggressive branch expansion plan after it received feedback on the same from investors, analysts and other stakeholders.
It said the management team will work out the financial estimates for the revised branch roll-out approach in the next two weeks or so.
In the quarter ended September 30, the bank posted a 10% fall in profit at Rs 36.93 crore as against Rs 41.09 crore last year.
On the assets front, bank's gross non-performing assets (NPAs) as a percentage of gross advances moved slightly up at 1.99% as against 1.90% a year earlier.
Net NPAs, or bad loans, were at 1.16% of the net advances in the second quarter, from 1.07% a year earlier.
During the last two days, shares of DCB Bank had tanked over 30% on concerns over its aggressive branch expansion plans and fall in profit.
Its shares was trading at Rs 95.80, up 3.68%, on BSE today.
On October 13, the lender said it plans to double its branch network within 12 months. It announced plans to add 150+ branches to its existing network of 160 branches.
The bank today altered its aggressive branch expansion plan after it received feedback on the same from investors, analysts and other stakeholders.
Also Read
"In the view of feedback received, and in close consultation with our Chairman, the management team has decided to install 150+ branches in a cautious, prudent and calibrated manner over a period of 24 months (instead of 12 months)," the bank said in filing to stock exchanges.
It said the management team will work out the financial estimates for the revised branch roll-out approach in the next two weeks or so.
In the quarter ended September 30, the bank posted a 10% fall in profit at Rs 36.93 crore as against Rs 41.09 crore last year.
On the assets front, bank's gross non-performing assets (NPAs) as a percentage of gross advances moved slightly up at 1.99% as against 1.90% a year earlier.
Net NPAs, or bad loans, were at 1.16% of the net advances in the second quarter, from 1.07% a year earlier.
During the last two days, shares of DCB Bank had tanked over 30% on concerns over its aggressive branch expansion plans and fall in profit.
Its shares was trading at Rs 95.80, up 3.68%, on BSE today.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%