DCB Bank Q3 Results Review - Strong Deposit Growth At 22.6%; NIMs Up By 14 Basis Points: IDBI Capital

IDBI Capital Report

DCB Bank Ltd.’s asset quality continued to improve sequentially with gross non-performing asset at 3.6% versus 3.9% QoQ and net non-performing asset at 1.4% versus 1.5% QoQ.

Net restructured standard book further declined to Rs16.3 billion versus 17.1 billion QoQ; remains high among the industry. Banks deposits growth remained strong at 23% YoY versus 16% YoY (Q2 FY23); credit growth too witnessed strong growth at 21% YoY.

Net interest income grew by 29% YoY led by improvement in margins (up 41 bps YoY). Profit after tax grew by 51% YoY led by lower provisions (down 58% YoY). Cost/income ratio continued to remain at elevated level (stable sequentially at 64% versus 64% QoQ).

DCB Bank reported collection efficiency for key portfolios (Dec-22) – loan against property/home loans/commercial vehicle loans at 97.3%/98.3%/92.4% versus 96.7%/98.1%/89.4% (Sept-22) respectively.

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