DCB Bank Q3 operating profit up 46% at Rs277.34cr on lower interest costs

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DCB Bank reported a very marginal 3.33% growth yoy in revenues in the Dec-20 quarter at Rs1,023.86cr. Treasury income was higher in the Dec-20 quarter on a yoy basis. However, interest income from retail lending business and from the corporate lending business saw a sharp fall in revenues on a yoy basis.


For the Dec-20 quarter, the operating profits were up 46.03% at Rs277.34cr. This growth in operating profits was on account of lower interest costs and due to lower operating expenses in the Dec-20 quarter. As a result, operating margin or OPM expanded from a level of 19.17% in Dec-19 to 27.09% in Dec-20 quarter.


Profit after tax (PAT) for the Dec-20 quarter was absolutely flat at Rs96.21cr. This was due to a sharp spike in loan loss provisions which went up yoy from Rs59cr to Rs148cr. Consequently, the PAT margins moderated from 9.76% to 9.40% in the same period.


Financial highlights for Dec-20 compared yoy and sequentially















DCB Bank

Rs in Crore

Dec-20

Dec-19

YOY

Sep-20

QOQ

Total Income (Rs cr)

₹ 1,023.86

₹ 990.89

3.33%

₹ 970.98

5.45%

Operating Profit (Rs cr)

₹ 277.34

₹ 189.92

46.03%

₹ 224.81

23.37%

Net Profit (Rs cr)

₹ 96.21

₹ 96.70

-0.51%

₹ 82.29

16.92%

Diluted EPS (Rs.)

₹ 3.07

₹ 3.07

₹ 2.63

Operating Margins

27.09%

19.17%

23.15%

Net Margins

9.40%

9.76%

8.47%

Gross NPA Ratio

1.96%

2.15%

2.27%

Net NPA Ratio

0.59%

1.03%

0.83%

Return on Assets

1.01%

1.03%

0.86%

Capital Adequacy

18.32%

15.80%

18.28%

 

Key takeaways from the Dec-20 quarter results


  • During the Dec-20 quarter, DCB Bank saw a sharp fall in the gross NPAs to 1.96% and the net NPAs fell to 0.59% indicating that most of the short to medium term risks are already provided for.

  • DCB Bank has a comfortable capital adequacy ratio of over 18% well above the statutory requirements. In addition, the return on assets or ROA at above 1% is a major boost to the company’s performance.

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( With inputs from indiainfoline)

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