DCB Bank Q2 net dips 10%

Private sector lender DCB Bank reported a 10 per cent decline in net profit to Rs.37 crore in the second quarter ended September 2015 mainly due to higher provisioning and tax expenses.

Provisioning towards bad loans and other contingencies rose 58 per cent to Rs.22 crore as against Rs.14 crore a year ago.

Tax expenses rose nearly four-fold to Rs.20 crore from Rs.5 crore in the corresponding quarter last fiscal.

Net interest income, the difference between interest earned and interest expended, grew 27 per cent to Rs.150 crore ( Rs.118 crore a year ago), led by strong growth in advances. Non-interest income rose 32 per cent year-on-year (y-o-y) to Rs.49 crore.

Net interest margin improved a tad to 3.79 per cent (3.72 per cent).

As on September-end, advances grew 27 per cent y-o-y to Rs.11,180 crore, while deposits spiked 24 per cent to Rs.13,557 crore.

NPAs up

Asset quality deteriorated with gross non-performing assets (NPAs) rising nine basis points y-o-y (up three bps q-o-q) to 1.99 per cent.

Net NPAs increased (down six bps on sequential basis) to 1.16 per cent in Q2 FY16 from 1.07 per cent in Q2 FY15.


Source : Thehindubusinessline