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.
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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.
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“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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