Private sector lender DCB Bank on Friday reported a net profit of Rs 48.49 crore for the quarter ended September 2016, up 31.3 per cent year-on-year. The growth was driven by a near 27 per cent rise in net interest income (NII), or the difference between interest earned and interest expended. Non-interest income stood at Rs 61.62 crore. On a sequential basis, DCB Bank’s net profit rose a little over 3 per cent. The net interest margin (NIM) improved 17 bps y-o-y to 3.96 per cent.
The bank saw a 22.2 per cent year-on-year increase in provisioning at Rs 26.48 crore, even as the overall asset quality improved, with the gross NPA ratio falling to 1.75 per cent from 1.99 per cent a year ago, and the net NPA ratio dropping to 0.84 per cent from 1.16 per cent.
The CASA deposit ratio fell by 200 basis points y-o-y to 22 per cent by the end of September. Retail deposits accounted for 77 per cent of all deposits and stood at Rs 9,906.6 crore.
In a conference call, MD and CEO Murali M Natrajan addressed concerns over rising delinquencies in the bank’s mortgage portfolio, which accounted for more than 29 per cent, or Rs 74.3 crore, of its gross NPA figure of Rs 255.4 crore. This marks a nearly 60 per cent increase year-on-year.