DCB Bank announced a 13 per cent rise in net profit to Rs 127 crore in the Q2 of FY24, driven by core income, on Tuesday. In the same period last year, the private sector lender reported a net profit of Rs 112 crore.
According to a regulatory filing from DCB Bank, total income increased to Rs 1,413 crore in the second quarter of the current fiscal year from Rs 1,099 crore during the same period last year.
The bank’s net interest income increased from Rs 411 crore to Rs 476 crore during the reviewed quarter.
Gross non-performing assets decreased from 3.89 per cent of gross loans at the end of the September quarter to 3.36 per cent, indicating an improvement in the bank’s asset quality. In a similar vein, net non-performing assets, or bad loans, decreased to 1.28 per cent from 1.54 per cent in the same time last year.
As of September 30, 2023, the bank’s capital adequacy ratio stood at 16.55 per cent (with Tier I at 14.28 per cent and Tier II at 2.27 per cent in accordance with Basel III standards). The bank’s capital adequacy remains solid.
Speaking on the Q2 FY 2024 results Murali M. Natrajan, Managing Director & CEO said, “The Bank’s growth trajectory is expected to improve further in the coming months. The market conditions have impacted Cost of Deposit/ Funds and CASA balances, which is expected to stabilize in two quarters or so”.
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