DCB Bank Q4 Results Review - All Round Improvement In Metrics: Dolat Capital

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.DCB Bank Ltd. reported a good set of numbers with sequentially higher net interest margin at 3.6% (+14 basis points), healthy loan growth at 5% QoQ, and lower than expected credit costs. DCB margins benefited from lower interest reversals, re-pricing of hybrid mortgage loans to floating rates, and an increase in loan against property share. Management reiterated its net interest margin guidance of 3.65-3.75% (3.9%/3.65% in FY23/24). Lower slippages at 2% (exculding of gold book), continued traction in fee lines, and healthy growth in current account and savings account - were other key positives. Return ratios, however, are muted with return on asset/return on equity of 1%/13% for FY25E. We tweak earnings estimate and maintain ‘Accumulate’ rating with revised target price of Rs 165 (from Rs 155), valuing at 0.9 times FY26E adjusted book value against return on asset/return on equity of 1.1%/14%. With credit costs at 40 bps in FY24, operating leverage remains a key lever for RoA improvement going forward..Click on the attachment to read the full report:.DCB Bank Q4 Results: Net profit Rises At Rs 156 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

DCB Bank Q4 Results Review - All Round Improvement In Metrics: Dolat Capital

Low slippages and healthy recoveries aid credit costs

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