DCB Bank Q2FY25 results: Net up 23% on uptick in non-interest income

Private sector lender DCB Bank’s net profit during the second quarter of financial year 2025 (Q2FY25) rose 23 per cent year-on-year (Y-o-Y) to Rs 155 crore, aided by a sharp rise in non-interest income like fees, commissions etc.

 

Sequentially, the Mumbai-based lender’s net profit rose by 18 per cent from Rs 131 crore Q1FY25. Its stock closed 1.5 per cent lower at Rs 110.25 per share on BSE on Thursday.

 

NII expanded seven per cent Y-o-Y to Rs 509 crore in Q2FY25, compared to Rs 476 crore in the same quarter a year ago. Net interest margin (NIM) declined to 3.27 per cent in Q2FY25 from 3.69 per cent in Q2FY24. Sequentially, NIM was down from 3.39 per cent in Q1FY25.

 

The bank’s non-interest income has risen 91 per cent Y-o-Y to Rs 205 crore. The commissions and brokerage income rose to Rs 139 crore in Q2FY25 from Rs 97 crore a year ago.

 

The asset quality profile improved with gross NPAs declining to 3.29 per cent in September 2024 from 3.36 per cent in September 2023. Net NPAs also declined from 1.28 per cent in September 2023 to 1.17 per cent in September 2024. The provision coverage ratio (PCR), including written-off accounts, stood at 75.62 per cent in September, compared to 75.49 per cent a year ago.

 

Advances grew by 19.29 per cent Y-o-Y to Rs 44,465 crore in Q2FY25.

 

Total deposits increased 19.86 per cent Y-o-Y to Rs 54,532 crore. The share of low-cost deposits —current account and saving account (CASA) – improved marginally to 25.61 per cent in September 2024 from 25.04 per cent a year ago.

 

The bank’s capital adequacy stood at 15.55 per cent, with Tier-1 at 13.65 per cent at the end of September 2024.