The market was not too enthused with the Q3FY15 performance of DCB Bank as its asset quality did not exactly improve sharply and there was a rise in its provisioning. Its Gross NPA during Q3 came in at 1.87% v/s 1.9% (QoQ) and Net NPA also declined marginally to 1% from 1.07%. Provisioning for the quarter was also up – from Rs.14 crore in Q2 to Rs.18 crore in Q3 and up from Rs.10 crore in Q3FY14. Fresh slippages during the quarter halved (QoQ) to Rs.22 crore while restructured assets rose from Rs.80 crore to Rs.110 crore.

In terms of profitability, net profit for the quarter came in at Rs.42 crore, up 17% (YoY) on a NII of Rs.122 crore, up 30% while other income rose 45% at Rs.48 crore. NIM was at 3.7% v/s 3.72% (QoQ)but much better than 3.5% in previous Q3. Advances during the quarter rose 29% while deposits were up 24% of which 82% comprised of retail deposits. The Bank is hoping to improve its asset quality in the months to come and expects to bring down Gross NPA to 1.5% from the current 1.87% by the next 14-18 months.