Mumbai: DCB Bank on Tuesday reported a 17 percent rise in December quarter net profit at Rs 43 crore on the back of higher loan growth and said it hopes to close the fiscal with a loan book of Rs 10,000 crore.
"We hope to close the fiscal with a Rs 10,000 crore loan book," DCB Bank Managing Director and Chief Executive Murali Natrajan told PTI, adding the bank is continuously sharpening its focus on executing its plan for profitable growth.
The bank closed the quarter with a loan book of Rs 9,491 crore taking its balance sheet to Rs 14,807 crore, up from Rs 11,989 crore a year ago, recording a growth of 24 percent.
Its advances grew 29 percent to Rs 9,491 crore, while deposits rose 24 percent to Rs 11,850 crore, improving its net interest margin to 3.70 percent from 3.55 percent.
Interest income grew 23 percent to Rs 357 crore, while net interest income rose 30 percent to Rs 122 crore and non-interest income jumped 46 percent to Rs 48 crore.
The gross NPAs marginally improved to 1.87 percent and so was net NPAs which stood at 1 percent, down from 1.07 percent.
Fresh slippages have come down considerably in MSME & SME portfolio. While corporate loan book NPAs have been minimal, the said it may have one or two challenges in the coming months.
In October the bank raised Rs 250 crore in tier I capital through an offer of equity shares under qualified institutional placement, taking its capital adequacy ratio to 14.44 percent with tier I core capital being at 13.58 percent under Basel III.
On the status of the RBI mandate to bring down the promoters' holding to under 10 percent, Natrajan said, he has written to the central bank for more time. Currently the promoters-- the Aga Khan Fund for Economic Development and Platinum Jubilee Investments-- hold 16.4 percent in the bank.
The bank has 145 branches across 17 states and 2 union territories and will be opening 5-10 more branches this fiscal, he said.
