DEVELOPMENT CREDIT BANK

The bank has done well for Q2FY13, with net profit rising 66% (YoY) at Rs.22 crore, driven a 14% growth in deposits and 31% rise in advances. NIM, on a YoY was down from 3.41% to the current 3.24% but QoQ, it was up from 3.18%. Its NPAs have also come down, sequentially, gross NPA is down from4.18% to 3.86% and net NPA is down from 0.75% to 0.68%. Retail deposits have grown gradually from 80.76% of the total deposits in Q2FY12 to 83.22% in current Q2. It is up from 82.72% in Q1FY13. 

CASA ratio is the ratio of deposits in the current and savings accounts of a bank to its total deposits. A high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts which in turn means it is getting money at low cost, as no interest is paid on the current accounts and the interest paid on savings account is usually low. CASA of DCB has been coming down consistently, from 33.16% in Q2FY12 to 30.44% in current Q2 though it has marginally gone up from 30.25% in Q1Fy13. A higher CASA ratio like this is considered to be good for the profitability of the bank. The CASA of HDFC Bank, considered to be one of the best, was at 45.9% in Q2FY13. DCB has kept the cost of funds stable at 10.5% over the past 5 quarters. CAR has come down from 14.49% in Q1FY13 to 13.97% in current Q2. It currently has 87 branches and 331 ATMs.  As at end of Q2FY13, Aga Khan Fund for Economic Development and Platinum Jubilee Investment held 19.2% and its amongst non-promoter holding, South Indian Bank holds 3.82%, Tata Capital holds 2.74%, TVS Shriram Growth Fund holds 2.61%, HDFC holds 1.68%.