DCB Bank
In an otherwise lackluster market, DCB Bank yesterday closed in the positive, on expectations of a good performance for Q1FY15. The numbers came in after market closure and they were disappointing, with asset quality going down marginally. The bank posted a 4% (YoY) muted rise in net profit at Rs.45 crore though this was much lower, compared to the NII which came in at Rs.139 crore, up by a whopping 67%. But this surge in NII can be attributed to some extent, Rs.30 crore, came in via a one-time interest income. Net profit was dented by increase in provisioning – it was at Rs.23 crore v/s Rs.11 crore in Q4, more than doubled up. The bank has explained this rise in provisioning was on account of Rs.10 crore additional provisioning for specific standard advances. But for this one-time provisioning, net profit would have shown a 25% (YoY) rise. Other income fell 23% at Rs.34 crore while tax outgo was up at Rs.14 crore. Its advances for the quarter showed a YoY rise of 28% while deposits grew 27%.
In terms of asset quality, Gross NPA rose by a marginal 9 bps (QoQ) at 1.78% and net NPA was up 6 bps at 0.97%. YoY, NPA has come down but sequentially, it still remains a cause for some concern. Its provision coverage ratio fell 79.07%, down from 84.56% in Q1FY14 and 80.54% in Q4. CAR (as per Basel-III) norms was at 13.63% v/s 13.71% (QoQ). CASA ratio was at 25.4% v/s 27.5% (YoY). As at 30th June 2014, the Bank has 134 branches in 84 locations.