The Board of Directors of DCB Bank Ltd. reviewed financial results of the Third Quarter (Q3 FY 2018).
Q3 FY 2018 Highlights:
The Bank’s branch network stood at 311 branches as on December 31, 2017.
The Bank’s Profit After Tax was INR 57 Cr. in Q3 FY 2018 as against INR 51 Cr. in Q3 FY 2017, an increase of 11%.
Profit Before Tax was INR 88 Cr. in Q3 FY 2018 as against INR 79 Cr. in Q3 FY 2017, an increase of 12%.
Operating Profit of INR 123 Cr. over INR 109 Cr. as compared to last year, an increase of 12%.
In Q3 FY 2018, the Bank incurred issue related costs of approximately INR 5 Cr. for raising INR 300 Cr. of Basel III compliant Tier II bonds.
The Bank earned Net Interest Income of INR 250 Cr. as against INR 209 Cr. for the same period as compared to last year, an increase of 20%.
Non-Interest Income was INR 75 Cr. against INR 64 Cr. for the same period last year, an increase of 17%. Core Fee Income (Commission, Exchange & Brokerage) grew by 41% as compared to same period last year.
Net Advances grew to INR 18,595 Cr. as on December 31, 2017 from INR 14,584 Cr. as on December 31, 2016 a growth rate of 28%.
As on December 31, 2017, the Bank grew Deposits by 13% to INR 21,296 Cr. Retail CASA & Retail Term Deposits continued to provide a stable resource base to the Bank. Retail Deposits (including Agri and Inclusive Banking) were 77% of Total Deposits.
CASA ratio stood at 25.67% as on December 31, 2017 as against 25.85% as on December 31, 2016, with Savings Accounts year on year growth rate of 15%.
Net Interest Margin (NIM) for Q3 FY 2018 stands at 4.12% as against 3.95% for Q3 FY 2017.
Gross NPA ratio remained at 1.89% as on December 31, 2017 as compared to 1.55% as on December 31, 2016. Gross NPA includes slippage of one restructured Corporate advance in Q3 FY 2018. As of December 31, 2017 the Net Restructured Standard Advances was approximately INR 25 Cr. comprising of 3 accounts only.
Net NPA ratio remained at 0.87% as on December 31, 2017 as compared to 0.74% as on December 31, 2016. Provision Coverage was at 73.36% as on December 31, 2017.
Capital Adequacy Ratio (CAR) was at 15.77% as on December 31, 2017 with Tier I at 12.54% and Tier II at 3.23% as per Basel III norms. Year-to-date Profit After Tax has not been considered in CAR.
Murali M. Natrajan, Managing Director & CEO said, “Our main focus is to achieve steady diversified and balanced growth while controlling NPAs. We have completed our major branch expansion plan. Focus is on continuously improving branch performance/productivity. Competition is likely to push down NIMs to some extent.