BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
DCB Bank Ltd.’s Q1 FY21 print was in line. The QoQ de-growth in deposits was underwhelming, but DCB Bank’s focus on improving deposit granularity was evident and is positive.
The contribution of Top-20 deposits fell from 9.3% as of FY20 to 8.7% as of Q1 FY20, and further to 8.1% as of July 2020. The bank fully repaid outstanding certificates of deposits (Rs 6.1 billion in Q4 FY20).
Its focus on retail term deposits (up 43% YoY) over current account and savings account (down 8.6% YoY) was clearly visible. Borrowings registered a sharp growth of 48/15.4%.
DCB Bank’s capital to risk assets ratio rose 16 basis points QoQ to 17.9%, aided by a reduction in risk-weighted assets.
Asset quality was optically stable (benefited by the standstill classification), and the moratorium book dipped significantly.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR