DCB Bank Q4 results: Net up 9% at Rs 156 cr, board approves Rs 500 cr QIP

The capital adequacy ratio of DCB Bank stood at 16.59 per cent with Tier-I at 14.53 per cent at the end of March 2024

Private lender DCB Bank’s net profit rose by 9 per cent year-on-year (Y-o-Y) to Rs 156 crore for the quarter ended March (Q4FY24) on the back of a modest rise in net interest income (NII) and a decline in provisions.

Sequentially, the private sector lender’s profit rose by 23 per cent from Rs 127 crore in the quarter ended December (Q3FY24). Its stock closed 10.27 per cent higher at Rs 136.45 per share on BSE.

As for annual performance, its net profit for FY24 rose 15 per cent to Rs 536 crore from Rs 466 crore for FY23.  

The capital adequacy ratio stood at 16.59 per cent with Tier-I at 14.53 per cent at the end of March 2024.

In its filing with the BSE, the bank said its board today approved a proposal to raise up to Rs 500 crore in capital by issuing equity shares or convertible securities through Qualified Institutions Placement (QIP), subject to shareholder’s nod.

Its NII expanded by 4 per cent to Rs 508 crore in Q4 of FY24, compared to Rs 486 crore in Q4 of FY23. Sequentially, the NII rose by 7 per cent from Rs 474 crore in Q3 of FY24. The bank’s net interest margin (NIM) shrunk to 3.62 per cent in Q4FY24, from 4.18 per cent in Q4FY23. Sequentially, the NIM was up from 3.48 per cent in Q3 of FY24, according to an analyst presentation.

In a media call after the results, the bank projected that the NIM will be approximately 3.65 per cent in FY25.

The lender’s provisions and contingencies declined to Rs 24 crore in Q4, from Rs 53 crore in the year-ago period.

Advances grew 19.04 per cent Y-o-Y to Rs 40,925 crore at the end of March 2024. Total deposits increased 19.68 per cent Y-o-Y to Rs 49,353 crore.

Its gross non-performing assets (GNPAs) rose to 3.23 per cent in March 2024 from 3.19 per cent a year ago. Net NPAs rose to 1.11 per cent in March from 1.04 per cent in Q4Fy23. The provision coverage ratio stood at 77.30 per cent in March 2024 from 79.34 per cent a year ago.