DCB Bank Q1 results: Net profit increases 3% to Rs 131 cr; NIM's moderate

Private sector lender DCB Bank posted a small 3.0 per cent growth year-on-year (Y-o-Y) in its net profit at Rs 131 crore for the first quarter ended June 2024 (Q1FY25) in the backdrop of moderation in net interest margin (NIM). The bank had posted a net profit of Rs 127 crore in the same quarter of FY24 (Q1FY24).

Its stock closed 1.83 per cent up at Rs 133.35 per share on BSE.

Its net interest income (NII) rose by 5.0 per cent Y-o-Y to Rs 497 crore in Q1FY25, compared to Rs 471 crore in the same quarter a year ago. Its net interest margin (NIM) declined to 3.39 per cent in Q1FY25, compared to 3.83 per cent in Q1FY24.

Praveen Kutty, its managing director and chief executive, told Business Standard the cost of deposits is rising at a lower pace. He expects the cost of funds to stabilise over the next few months, thereby improving the NIM. The interest margins are expected to be between 3.65-3.75 per cent in FY25.

Non-interest income rose to Rs 143 crore in Q1FY25 from Rs 107 crore in Q1FY24.

Advances expanded 18.9 per cent Y-o-Y to Rs 42,181 crore in Q1FY25.

Total deposits increased 20.19 per cent Y-o-Y to Rs 51,690 crore at the end of June 2024. The share of low-cost deposits — current account and savings accounts (CASA) — moderated to 25.41 per cent at the end of June 2024, from 25.97 per cent a year ago.

The bank expects to grow the loan book by 19 per cent and deposits by about 20 per cent in FY25, Kutty said.

The lender’s asset quality profile was steady and its gross non-performing assets (NPAs) were 3.3 per cent in June 2024 compared to 3.26 per cent in June 2023. Net NPAs stood at 1.18 per cent in June 2024 as against 1.19 per cent a year ago.

The provision coverage ratio (PCR), including written-off accounts, stood at 76 per cent in June 2024 as against 77.07 per cent a year ago.

Capital adequacy stood at 15.95 per cent with Tier I of 14.0 per cent at the end of June 2024.