DEVELOPMENT CREDIT BANK

The stock was down yesterday over 4.5% and the results came in after the market closed for trading and they were a set of stellar numbers. The bank posted a 126% (YoY) jump in net profit at Rs.43 crore. The performance was led by its retail banking segment, followed by treasury while corporate remained around the same levels as in previous Q1. NII came in at Rs.83 crore, up 1.2%. NIM came in at 3.4% v/s 3.18% (YoY). Retail deposits, as stated earlier remained its mainstay and it was at 80% of total deposits. Its balance sheet as at 30^th June 2013 was at Rs.10,993 crore, a growth rate of 21%. Net advances rose 19%.

CASA ratio was down at 27.5% v/s 30.25% (YoY) but marginally better than 27.16%. Gross NPA was at 3.41% v/s 3.18% (QoQ) and net NPA was at 0.84% v/s 0.75% sequentially. The coverage ratio has come down marginally from 85.71% to 84.56%. The bank’s network of branches has increased from 94 branches to 101 in 51 locations as at 30^th June 2013.