 "DCB Bank zooms 37% in 1 month, trades at 5-year high; here's why")
Share price of DCB Bank today
Shares of DCB Bank hit an over five-year high at ₹177.45, as they rallied 5 per cent on the BSE in Friday’s intra-day trade in an otherwise weak market. The stock of the private sector bank is trading at its highest level since February 2020. It had hit a record high of ₹244.60 on June 25, 2019.
At 02:47 PM; DCB Bank was quoting 3 per cent higher at ₹174.60. In comparison, the BSE Sensex was down 0.33 per cent at 84,202.
In the past one month, DCB Bank outperformed the market by soaring 37 per cent, as against 2.5 per cent gain in the BSE Sensex. Further, thus far in the calendar year 2025, the stock has appreciated by 45 per cent, as compared to 7 per cent rise in the benchmark index.
What’s driving DCB Bank stock price?
For July to September 2025 quarter (Q2FY26), DCB Bank reported a 18.3 per cent year-on-year (YoY) growth in profit after tax at ₹184 crore amid better net interest income (NII) and controlled provisions.
DCB Bank’s NII grew 17.1 per cent YoY to ₹590 crore, while NIM improved 3bp QoQ to 3.23 per cent. Business growth was healthy with advances growth of 19 per cent YoY/3.4 per cent QoQ to ₹53,000 crore, whereas deposits grew 19 per cent YoY/4.4 per cent QoQ to ₹ 64,800 crore. Fresh slippages moderated to ₹400 crore (from ₹580 crore in Q1FY26). The GNPA/ NNPA ratios improved 7bp/1bp QoQ to 2.91 per cent/1.21 per cent.
The management said the growth of deposits and advances continues to be strong. Strides made in reduction of cost of deposits and cost of borrowing has helped in NIM uptick. The rigor on employee productivity and technology adoption is driving down the Cost to Average Assets for the fifth consecutive quarter. Improved collections and recovery have resulted in much lower credit costs, it added.
Management expects 20 per cent YoY loan growth, NIMs at 3 per cent levels with deposits repricing. Cost to average assets to stabilize around 2.4 per cent and credit costs below 45bps. RoE guidance for FY27 is 13.5 per cent.
Brokerages view on DCB Bank
According to Motilal Oswal Financial Services, DCB Bank reported a steady quarter with a beat in earnings amid lower provisions, healthy NII, and controlled opex. Margin improved 3bp QoQ, and the bank expects it to improve further going forward if no further rate cut occurs. Business growth was healthy with increased focus on gold loans and co-lending.
Asset quality improved with slippages moderating sequentially, and management expects credit cost to remain below 45bp for the full year. The brokerage firm tweaks its earnings estimates for FY27 and projects FY27E RoA/RoE of 1.01 per cent/15.3 per cent.
DCB Bank’s improving profitability trajectory, granular balance sheet, and stable asset quality reinforces its ability to deliver sustained earnings growth. With a strong capital position (CAR at 16.4 per cent), improving efficiency, and well-controlled credit costs, DCB is poised to deliver loan CAGR of ~20 per cent and RoA/RoE of 0.96 per cent/14.3 per cent over FY26–27E, analysts at JM Financial Institutional Securities said.
However, the stock is trading above both the brokerage firm’s target price of ₹165 and ₹144, respectively.