DCB Bank surges on back of robust earnings growth

DCB bank reported last quarter earnings of FY18 on Saturday. The bank’s net interest income rose 20 per cent yoy to Rs. 263.7 crore in the quarter. Besides, its non-interest income surge 34 per cent yoy to Rs. 84.9 crore. Net interest margin for the quarter stood at 4.16 per cent as against 4.04 per cent in the corresponding quarter of the last year. 

Bank’s net profit for the quarter increased by 21 per cent from the corresponding quarter of last year to Rs. 64.2 crore. 

Looking at bank’s NPA situation, DCB seems to be placed comfortably with net NPA of 0.72 per cent as against 0.87 per cent in Q3FY18. Gross NPA also declined to 1.79 per cent from 1.89 per cent in Q3FY18. Provision coverage for the quarter stood at 75.72 per cent. 

Capital Adequacy Ratios for DCB as on Q4FY18 was at 12.72 per cent (tier-I) and 3.75 per cent (tier-II). 
In terms of full year FY18, net interest income rose 24.8 per cent yoy to Rs. 9,95.4 crore. Also, net profit during the period increased 22.8 per cent yoy to Rs. 2,45.3 crore. 

Net advances of bank for FY18 stood at Rs. 203,36.7 crore. Out of these advances, 40 per cent share is of mortgage followed by agri loan at 18 per cent, corporate banking 17 per cent, SME & MSME 12 per cent and others which include commercial vehicle loan, gold loan and construction finance. 

DCB Bank has around 74 per cent retail deposits. 

The Bank’s Board of Directors recommended a dividend of Rs. 0.75 per equity share of Rs.10 each. 

With this robust financial performance, the stock of DCB Bank on Monday surged around 4 per cent. At 11.48 hours, the stock is trading at Rs. 183.9, up by 2.8 per cent.