DCB Bank's Q1FY17 earnings in line with the previous year

DCB Bank, a scheduled commercial bank has posted reasonably positive Q1FY17 results. The stock surged and closed 5 per cent upwards at Rs 104.90, ahead of positive outcome.

On financial front, Bank’s standalone Interest earned stands at Rs 470.62 crore this quarter as against Rs 448.11 crore in Q4FY16, an increase of 5 per cent Q-O-Q (Quarter on Quarter). The Interest expended too has increased in line by 5.1 per cent at Rs 293.59 crore as against Rs 279.42 crore during Q4FY16. The Net Interest Margin (NIM) of company stands at Rs 177.03 crores this quarter compared to Rs 168.69 crores in Q4FY16, an increase of 4.9 per cent QoQ.

The bank has decreased its provisions and contingencies by 24.7 per cent QoQ at Rs 20.53 in Q1FY17 crores from Rs 27.25 crores in the previous quarter. However, DCB Bank has lifted its tax payments to Rs 25.17 crores from Rs. 0.23 crores in the previous quarter. Thereby Net profit (PAT) has declined by 32.4 per cent at Rs 47.03 crore in Q1FY17 as against Rs 69.53 crore in last quarter. Bank’s Gross NPA stands at Rs 231.26 crore as compared to Rs 197.38 crore, an increase of 17.2 per cent. Net NPA has come in at Rs 115.71 crore as against 97.46 crore, an increase of 18.7 per cent.

Bank has posted 16.4 per cent rise in Interest Earned and 11.2 per cent rise in Interest Expended from the same quarter last year. Net profits stand in line with the Q1FY16 with just 0.3 per cent increase. Gross NPA has seen a rise of 12 per cent, but Net NPA has dropped 8.9 per cent from the corresponding period of last year.

DCB Bank deals in Treasury Operations, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. The other operations are third party product distribution and merchant banking.The Banking operations are spread across the country through nearly 200 branches and 410 ATMs.