DCB Announces Q4FY14 Result

DCB, formerly known as Development Credit Bank, has come out with good set of numbers for the quarter ended 31 March 2014. During Q4FY14 the bank has shown 14.7% of growth yoy in net profit to Rs. 39 crore against Rs.34 crore in corresponding quarter of previous year. However Net interest income (NII) has gone up by 21.95% to Rs.100 crore in Q4FY14 while its net interest margin (NIM) magin stand at 3.59% as against 3.52% in Q4FY13.

On assets quality front, the bank has produce a mix set of numbers. Gross NPAs of the bank has come down to 1.69% of total lending in Q4FY14 against 2.77% in Q3FY14. However Net NPAs for the bank is a bit disappointing, net NPAs of the bank for the quarter ended Q4FY14 stand at 0.91% against 0.77% in Q3FY14. The bank has increased its provisioning by 22% to Rs. 11crore in Q4FY14 while Provision coverage ratio (PCR)  has come down to 80.54% in Q4FY14 from 84.25% in Q3FY14.

On yearly basis the bank has recorded 49% of growth in FY14 to Rs. 152 crore against Rs 102 crore in FY13. On operational front , the bank has recorded a strong growth 23.5% of in its advance to Rs. 8140 crore in FY14 while deposits has also shown a similar trend and has gone up by 23.4% to Rs 10325 crore in FY14. The bank has able to maintain it CD ration around 78% during the quarter.

At CMP Rs 65.75 the bank is trading at 1.64 (x) of Price to book(P/Bv) Value while industry average(private banks only)  P/Bv comes to 3.22(x).