DCB Bank Q1 Results: Net profit nudges up 3% to ₹131 crore
DCB Bank’s net profit nudged up 3 per cent year-on-year (y-o-y) increase in the first quarter (Q1FY25) at ₹131 crore against ₹127 crore in the year-ago period. The muted growth in net profit was due to interest expense growing faster than interest earned.
Praveen Kutty, who took charge as MD & CEO of the Bank on April 29, 2024, said the bank plans to double its balance sheet size (advances, investments, other assets, etc) to ₹1.30 lakh crore in 3 to 3.5 years from the current ₹64,516 crore.
This will be achieved by focussing on mortgages (lome loan + loan against property), MSME/SME, gold loan, co-lending, agri & inclusive banking, and construction finance.
Net interest income (difference between interest earned and interest expended) in the reporting quarter was up five per cent y-o-y at ₹497 crore (₹471 crore in the year-ago period).
Other income, including fee-based income, treasury income and recovery in written-off accounts, rose 34 per cent y-o-y to ₹143 crore (₹107 crore).
Non-tax provisions declined to ₹28 crore from ₹38 crore in the year-ago quarter.
Net interest margin declined to 3.39 per cent against 3.83 per cent in the year ago period.
GNPAs increased to 3.33 per cent of gross advances as at June-end 2024 against 3.23 per cent as at March-end 2024. Net NPAs too increased to 1.18 per cent of net advances against 1.11 per cent.
Gross advances increased by 19 per cent y-o-y to ₹42,181 crore as at June-end 2024. Total deposits rose by 20 per cent y-o-y to ₹51,690 crore.