Despite spike in bad loans, DCB Bank net jumps 21 per cent

PTI

Business, Companies

City-based bank's core net interest income rose 30 pc to Rs 248 crore on back of a 20 per cent credit growth.

Bank scrip shed 0.65 per cent to close at Rs 189.90 on the BSE, as against a 0.62 per cent rise on the benchmark. (Representational Image)

Mumbai: Small sized private sector lender DCB Bank on Monday reported 21 per cent rise in its September quarter net at Rs 59 crore on core income growth, but reported a spurt in retail bad loans.

The city-based bank's core net interest income rose 30 per cent to Rs 248 crore on the back of a 20 per cent credit growth, but the non-interest income was flat at Rs 65 crore.

Chief executive and managing director Murali Natrajan attributed the muted growth in non-interest income to a high base, where the bank had earned a healthy income on treasury operations last year.

Its gross non-performing assets ratio moved up to 1.80 per cent from the 1.75 per cent last year and as a result fresh slippages came in at Rs 77.5 crore and were driven by the retail loans, including mortgages and commercial vehicles, Natrajan said.

He said the overall environment has resulted in difficulties being faced by various segments, which is resulting in the difficulties on the asset quality front. But he said there has been no contribution from the corporate segment to the slippages.

Its net interest margin rose sharply to 4.22 per cent from the year-ago period's 3.96 per cent. The overall capital adequacy ratio was at 14.65 per cent with the core tier-I at 12.90 per cent.

Natrajan said the current level of capital will help the bank for 18 months. The bank scrip shed 0.65 per cent to close at Rs 189.90 on the BSE, as against a 0.62 per cent rise on the benchmark.  

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