DCB Bank Q4 profit rises 13%

 

Private lender DCB Bank on Saturday reported a 13 per cent increase in net profit to Rs 78 crore for the January-March quarter compared to that of Rs 69 crore in the year-ago quarter. Total income of the bank during the January-March quarter of 2020-21 fell to Rs 971 crore from Rs 1,012 crore in the same quarter of 2019-20, DCB Bank said in a regulatory filing. The income from interest as well as from investment fell during the reported quarter from a year ago.

For the FY2020-21, the bank's net profit remained nearly flat at Rs 336 crore against Rs 338 crore in FY20. Income also was a tad down at Rs 3,917 crore in FY21 against Rs 3,928 crore in FY20.

The bank's asset quality worsened with the gross non-performing assets (NPAs) spiking to 4.09 per cent of the gross advances as of March 31, 2021, as against 2.46 per cent by the end of March last year.

In value terms, the gross NPAs stood at Rs 1,083.44 crore, significantly higher than Rs 631.51 crore in the year-ago period.

Provisions for bad loans and contingencies in Q4FY21 came down to Rs 101.18 crore from Rs 118.24 crore a year earlier. Net NPAs stood at 2.29 per cent (Rs 594.15 crore) as against 1.16 per cent (Rs 293.51 crore).

On returning the compound interest to eligible borrowers post the Supreme Court final order in March and subsequent the RBI notification, the lender said it is in the process of account by account calculation of interest relief due to the eligible customers.

In the meantime, as of March 31, 2021, the bank has created liability towards estimated interest relief of Rs 10 crore and reduced the same from the interest income.

The bank said it held contingency provision of Rs 229.11 crore against the likely impact of Covid 19 regulatory package, impact of the conclusion of the interim order (of Supreme Court on not declaring accounts as NPAs till August 31, 2020 and after) and other contingencies.

On the impact of second wave of the pandemic, it said under the current circumstances the bank during March quarter, on a prudent basis, has made a contingency provision of Rs 124 crore towards further likely impact of Covid-19 on restructured and stressed assets.

"In addition to this contingency provision of Rs 124 crore, the bank also holds floating provision amounting to Rs 108.80 crore, besides, provisions for standard assets and specific non-performing assets," it said.

Besides, the amount in overdue categories where the moratorium or deferment was extended as of March 31, 2020 was Rs 1,908.08 crore at end of March this year, it said. The provisions held on these by the end of September 2020 was Rs 68 crore and similar amount was kept as provisions adjusted against slippages (NPA and restructuring), DCB Bank said.

The lender also said that its board has not recommended any dividend for fiscal ended March 2021 in view of the situation developing around Covid-19 in the country and the related uncertainty that it creates.

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DCB Bank Q1 profit jumps 16.63%

DCB Bank Ltd on Tuesday said its first quarter net profit rose 16.63% on the back of higher net interest income and other income.

The bank posted a net profit of Rs.81.06 crore for the three months ended 30 June compared to Rs.69.50 crore in the year-ago period. Profit was lower than Rs.93.11 crore estimated by a Bloomberg poll of 11 analysts.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 11.64% to Rs.304.75 crore from Rs.272.97 crore in the corresponding period last year.

Other income, which includes core fee income, rose 4.74% to Rs.86.76 crore in the three months from Rs.82.83 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 1.96% in the June quarter compared with 1.84% in the March quarter and 1.86% in the year-ago period.

Provisions during the quarter increased 22.3% to Rs.40.64 crore as against Rs.33.23 crore in the year-ago quarter. In Jan-Mar, the bank had set aside Rs.34.78 crore in provisions.

Post-provision, the net NPA ratio was at 0.81% against 0.65% in the March quarter and 0.72% in the year-ago period.

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DCB Bank Q4 results: Profit slips 28% to Rs 69 crore

DCB Bank on Saturday reported a 28 per cent decline in net profit at Rs 69 crore for the March quarter, impacted by the corona virus crisis.

The private sector lender had posted a net profit of Rs 96 crore in the same period of 2018-19.

Income during the January-March quarter of FY20 rose by 8.5 per cent to Rs 434 crore, as against Rs 400 crore in the same period of the preceding fiscal, DCB Bank said in a release.

The bank's profit after tax in FY20 stood at Rs 338 crore, up 4 per cent from Rs 325 crore in 2018-19.

Income during the year grew 10.5 per cent to Rs 1,656 crore as against Rs 1,499 crore in the preceding fiscal.

"Both FY 2020 and Q4 2020 Profit Before Tax was impacted by Rs 63 crore Covid-19 Regulatory Package Provision. The bank conservatively made more provision than required as per guidelines," it said.

The bank's asset quality weakened, with gross non-performing assets (NPAs) or bad loans rising to 2.46 per cent of gross advances as on March 31, 2020, from 1.84 per cent in the corresponding quarter of the previous fiscal.

Likewise, net NPA ratio rose to 1.16 per cent from 0.65 per cent.

DCB Bank's Managing Director and CEO Murali M Natrajan said, "Our main aim in the next two quarters would be to carefully navigate through the difficult and uncertain environment focusing on on handling potential portfolio stress, assisting loan customers within regulatory guidelines, effect cost reduction and maintain adequate liquidity."

He said the bank is of the view that the second moratorium relief announced by the RBI has come at the right time.

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DCB Bank Q3 net profit up 12.3%

Private sector lender DCB Bank on Saturday reported an increase of 12.31 percent in its net profit at Rs 96.70 crore for the third quarter ended December 2019. Its net profit was Rs 86.10 crore in the October-December period a year ago, DCB Bank said in a BSE filing.

DCB Bank's total income was up 13.66 percent at Rs 990.89 crore during the quarter under review as against Rs 871.78 crore in the corresponding period a year ago.

Net interest income increased 9.86 percent to Rs 323 crore as against Rs 294 crore for the same period last fiscal year.

While non-interest income marginally declined to Rs 93 crore against Rs 94 crore.

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DCB Bank Q2 profit grows 24.5%

Private sector lender DCB Bank's profit after tax increased 24.5 percent year-on-year (YoY) to Rs 91.41 crore for the quarter that ended on September 2019, but asset quality weakened sequentially. The net growth was driven by other income, PPoP and NII.

Net interest income, the difference between interest earned and interest expended, grew by 11.2 percent YoY to Rs 313.36 crore in Q2FY20, with advances as well as deposits showing a growth of more than 12 percent each.

Asset quality weakened further during the quarter that ended on September 2019 with gross non-performing assets (NPA) rising to 2.09 percent, up from 1.96 percent sequentially and net NPA also increasing to 0.96 percent from 0.81 percent QoQ.

Provisions and contingencies also jumped 35.64 percent YoY to Rs 43.27 crore in September quarter 2019 while the same increased 6.5 percent on sequential basis.

Other income or non-interest income shot up 38 percent to Rs 101.39 crore and pre-provision operating profit jumped 26.3 percent to Rs 184.53 crore compared to same quarter last year.

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DCB Bank Q1 profit jump 16.63%

DCB Bank Ltd on Tuesday said its first quarter net profit rose 16.63% on the back of higher net interest income and other income.

The bank posted a net profit of ₹81.06 crore for the three months ended 30 June compared to ₹69.50 crore in the year-ago period. Profit was lower than ₹93.11 crore estimated by a Bloomberg poll of 11 analysts.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 11.64% to₹304.75 crore from ₹272.97 crore in the corresponding period last year.

Other income, which includes core fee income, rose 4.74% to ₹86.76 crore in the three months from ₹82.83 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 1.96% in the June quarter compared with 1.84% in the March quarter and 1.86% in the year-ago period.

Provisions during the quarter increased 22.3% to ₹40.64 crore as against ₹33.23 crore in the year-ago quarter. In Jan-Mar, the bank had set aside ₹34.78 crore in provisions.

Post-provision, the net NPA ratio was at 0.81% against 0.65% in the March quarter and 0.72% in the year-ago period.

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DCB Bank Q4 net profit rises 50%

DCB Bank has registered 50 percent jump in its Q4 net profit to Rs 96.3 crore on the back of better asset quality.

The company had reported profit of Rs 64.21 crore in the same quarter last fiscal.

Its gross NPA was at 1.84 percent against 1.92 percent, while net NPA was at 0.65 percent against 0.71 percent, QoQ.

The net interest income of the company stood at Rs 300 crore.

Provisions for the quarter was at Rs 35 crore against Rs 40.1 crore.

In the absolute term, the gross NPA was at Rs 439.5 crore, while net NPA at Rs 153.8 crore.

The company board recommended a dividend of Re 1 per equity share of Rs 10 each (i.e. 10%) for the year ended March 31, 2019

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DCB Bank Q3 profit jumps 51%

Private sector lender DCB Bank has reported a massive 51 percent on year growth in third quarter profit at Rs 86.1 crore despite higher provisions. The growth was largely driven by NII, other income and operating income.

Profit in same quarter last year stood at Rs 57 crore.

Net interest income, the difference between interest earned and interest expended, grew by 17.2 percent year-on-year to Rs 293.6 crore with credit growth of 23 percent YoY.

"Net advances grew to Rs 22,888 crore as on December 2018 from Rs 18,595 crore as on December 2017 a growth rate of 23 percent," the bank said, adding deposits grew by 29 percent to Rs 27,509 crore YoY.

Net interest margin was unchanged at 3.83 percent in Q3 QoQ, but contracted from 4.12 percent in same period last year.

Asset quality slightly weakened during the quarter. Gross non-performing assets (NPA) as a percentage of gross advances were higher at 1.92 percent in Q3 against 1.84 percent in Q2 and net NPAs were higher at 0.71 percent against 0.70 percent QoQ.

In absolute terms, gross NPAs increased by 9 percent sequentially to Rs 445.1 crore and net NPA by 5 percent to Rs 163.4 crore, driven by higher slippages.

Fresh slippages at the end of December quarter stood at Rs 114 crore, which were higher compared to Rs 97 crore reported in previous quarter, the bank said, adding recoveries were at Rs 27.9 crore and upgrades at Rs 35.1 crore in Q3 (against Rs 32.7 crore and Rs 37.3 crore respectively).

Provisions and contingencies increased by 26 percent sequentially and 17 percent YoY to Rs 40.1 crore in quarter ended December 2018.

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