DCB Bank

This small bank has posted a robust set of numbers for Q4FY15, sending the stock price also soaring. Its net profit rose 61% (YoY) to Rs.63 crore while Net interest income (NII) was up 30% at Rs.130 crore. This surge in net profit was mainly on the back of deferred tax write back of Rs.10 crore and Rs.7 crore write-back on provisions for bad loans.

The market was more enthused about its asset quality improvement. Its Gross NPA came in at 1.76% v/s 1.87% (QoQ) while net NPA stood at 1.01% v/s 1%. Sequentially, provisions rose from Rs.14 crore to Rs.18 crore.  A shipping company led to a slippage of Rs.65 crore but the bank has stated that it holds collaterals for the same against quality assets. It sold Rs.62 crore of bad assets to an asset reconstruction company (ARC). Looking ahead, the Bank plans to continue to focus on retail loans, which currently makes up for over 50% of its total loan book.