DCB Bank Q3 Results Review - Growth Trends Improve; Low Credit Costs Aid PAT Growth: Dolat Capital
Despite rising interest rates, enquiries and conversion rates in the mortgage book remains strong.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
DCB Bank Ltd. reported a good quarter with net interest income growth 29% YoY, with sequential net interest margin expansion of 14 basis points to 4%. Loan growth at 5.4% QoQ and 19% YoY was better than expected.
Despite de-growth in pre-provision operating profit YoY led by higher opex and lower other income, profit after tax grew by 51% YoY owing to lower credit costs.
Slippages at 4.9% moderated QoQ, but continue to be impacted by Reserve Bank of India’s out of order notification for credit card/overdraft facilities, offset by equally strong recoveries, with credit costs of 50 bps for the quarter. Stress in the restructured/Emergency Credit Line Guarantee Scheme portfolio has been limited.
DCB Bank stands out for its granular lending franchise and strong collection/recovery capabilities.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.