DCB Bank Q2 Review - Improved Visibility On Loan Growth Trajectory & 1% RoA By FY23E: ICICI Securities
BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
DCB Bank Ltd.'s Q2 FY22 earnings at Rs 649 million (up 92% quarter-on-quarter) was primarily driven by lower provision at Rs 0.86 billion versus Rs 1.6 billion in Q1 FY22 and strong NII growth of 5% quarter-on-quarter.
While fresh slippages remained elevated at Rs 4.2 billion (6.2% annualised), improved business sentiment led to higher recoveries / upgrades at ~Rs 4 billion resulting in GNPL improvement to 4.68% vs 4.87% in Q1 FY22.
NNPL stands at 2.6% with PCR at 45%.
Total vulnerable pool (GNPL 4.7% + restructured book 6.8% + ECLGS 3.8%) is at 15% and total provision (ex standard assets) at 3.5% as of September 2021.
Collections continued to show improvement with CE in LAP / HL at 96% / 98% respectively as of September 2021.
Click on the attachment to read the full report:
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 author entity 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.