DCB Bank’s Net Profit Beats Estimates But Asset Quality Worsens

DCB Bank Ltd.’s net profit increased in the April-June quarter, surpassing street estimates.

Net profit rose 38.7 percent to Rs 65.2 crore in the first quarter of the current financial year compared to the same period last year, the lender said in an exchange filing on Saturday. The consensus estimate of analysts tracked by Bloomberg stood at Rs 57.3 crore.

Net interest income increased more than 31 percent to Rs 233.20 crore on a year-on-year basis, slightly higher than the Bloomberg consensus estimate of Rs 227 crore.

The bank’s asset quality worsened slightly on a quarter on quarter basis. Gross non-performing assets, as a percentage of total advances, rose to 1.74 percent from 1.59 percent in the previous quarter. Net NPAs rose to 0.92 percent from 0.79 percent in the same period. Provisions rose 4.6 percent to Rs 35.5 crore on a quarter on quarter basis.

Dena Bank's Director Keki Elavia has stepped down from his post, the lender said in a separate filing.