Mumbai: DCB Banks profits increased 51% to Rs.86 crore as against Rs.57 crore a year ago on back of loan growth and improving net interest income (NII) in their third quarter results announced Wednesday.
DCBs share fell 0.9% to Rs.181.05.Revenue growth has been steady, cost growth has been contained and there has been no uptick in credit lossesCredit losses are in line with loan growth, said Murali Natarajan CEO and MD of DCB Bank.branches we have setup, they are all steadily giving us performance which is improving operating leverage resulting in an improving cost-income ratio.
The banks NII rose 17% to Rs.294 crore from Rs.250 crore a year ago, while non-interest income grew to Rs.94 crores from Rs.75 crores.
The net advances grew 3.6% to Rs.22888 crore from Rs.22069 crore in same period.In said quarter, about 40% of banks advances are in mortgages, 19% in agri-loans, 15% in corporate banking, 12% in MSME sector and 12% in construction finance, gold loans and vehicle loans.Our aim is to double our balance sheet in next three years.
Even when we do that, we believe that distribution of loans amongst various products in our loan book will be in same ratio.
We dont intend to grow our corporate loans in next three years and well continue to focus on granular loans, Natarajan said.
Deposits grew by 29% to Rs.27509 crore from Rs.21296 crore a year ago.
CASA ratio stood at 24.25% as against 25.67% in same period.
The gross NPA spiked marginally to 1.92 from 1.89% a year ago while net NPA decreased to 0.71% from 0.87%.