DCB Bank falls sharply, as the results come out

The stocks of one of the major private banks, DCB Bank, steeply plunged by over 7 per cent intraday on BSE on April 17, 2017, as the bank posted a decrease in its profit by 24 per cent to Rs 53 crore on yearly basis in the fourth quarter of FY17.

The stark drop in the profits of the bank from Rs 70 crore in the same quarter in the previous fiscal, is attributed to the bank's high provisioning and higher tax expense.

However the net interest income of the bank increased by 30 per cent to Rs 220 crore in FY17 from a Rs 169 crore in the previous fiscal. While the bank's gross NPAs to total loans ratio also increased to 1.59 per cent in FY17 from 1.55 per cent in FY16.

The stock had recently hit a record high of Rs 183 on April 12, 2017, escalating in value by 67 per cent. As on April 17, 2017, at 12:51 pm, the stock traded at Rs 171.75 per cent, down by 4.40 per cent on the BSE. However, the stock hit a low of Rs 167.60 on the same day, accounting for a reduction of nearly 7 per cent.