Development Credit Bank Posts Good Numbers For Q1FY14

Vinaya Patil / 16 Jul 2013

Development Credit Bank Posts Good Numbers For Q1FY14

The bank’s performance was aided by an increase in the net interest income (NII) as well improvement in the net interest margin (NIM).

Development Credit Bank (DCB), a Mumbai-based Mid-Cap bank came out with its first quarterly result of FY14. Continuing with its robust performance, DCB saw its profit increasing by 126% on a yearly basis to Rs 42.82 crore for the quarter. However, a part of this growth was attributed to exceptional treasury gains. If these gains and the cost associated with it were removed, the profit comes down to Rs 35 crore, reflecting a gain of 85%.

This performance was aided by an increase in the net interest income (NII) as well improvement in the net interest margin (NIM). NII of the bank has increased by 30% on a yearly basis to Rs 83 crore over a 19% increase in the advances. NIM expanded by 8 basis points to 3.44% for Q1FY14.

On the asset quality front, the bank disappointed with both its gross as well as net NPA declining on a sequential basis. The gross NPA and net NPA deteriorated by 23 basis points and 9 basis points respectively on a yearly basis to 3.41% and 0.84% for the first quarter of FY14. However, the bank has maintained a provision coverage ratio of 84.56%, which is above 70% stipulated by the RBI.

The CMP of Rs 49.7 discounts the book value of the bank by 1.27x, which fairly discounts its current performance. However, any further dip in the share price of the bank should be used as an opportunity to accumulate the stock.

If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.