DCB Bank Q4 profit falls 29% to Rs 69 crore as provisions trebled due to COVID-19; NPAs risePage Visited: 22
Private sector lender DCB Bank on May 23 reported a 28.6 percent year-on-year decline in March quarter profit at Rs 68.76 crore, impacted largely by spike in provisions due to COVID-19 crisis.
The profitability was supported by lower tax cost, and higher other income and pre-provision operating profit.
Net interest income during the quarter grew by 7.6 percent to Rs 323.7 crore compared to the year-ago period, with 8 percent YoY growth in net advances.
Net advances increased to Rs 25,345 crore at the end of March 2020, from Rs 23,568 crore in March 2019, while deposits grew by 7 percent to Rs 30,370 crore, DCB Bank said in its BSE filing.
Provisions and contingencies shot up 240 percent year-on-year to Rs 118.24 crore in the quarter-ended March 2020, including Rs 63 crore related to COVID-19 regulatory package provisions. The sequential increase in total provisions was 100.4 percent.
Asset quality weakened during the March quarter with gross non-performing assets (NPAs) as a percentage of gross advances rising 31 basis points sequentially to 2.46 percent and net NPA climbing 13 bps QoQ to 1.16 percent.
“As of March 2020, the net restructured standard advances were approximately Rs 237 crore – commercial vehicle at Rs 135 crore, SME+MSME at Rs 43 crore, mortgages at Rs 43 crore, corporate at Rs 11 crore and others at Rs 5 crore,” bank said.
Non-interest income increased 10.6 percent year-on-year to Rs 109.88 crore and pre-provision operating profit rose 14.5 percent to Rs 212.08 crore in quarter ended March 2020.
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