Privately owned DCB Bank reported significant improvement in its financial performance for the final quarter of FY 2019.
The bank’s improved performance comes at a time when the banking sector is undergoing major stress over bad loans.
Net profit rose to Rs 96 crore in the final quarter from the Rs 64 crore in the same quarter a year ago as net interest income rose to Rs 301 crore from Rs 264 crore.
DCB Bank reported a gross NPA of 1.84% at the end of year, down from 1.92% three months earlier, but up from 1.79% same time last year.
However, net NPAs, which excludes bad loans for which the bank has already made provisions or write-offs, fell to 0.65% of total loans from 0.71% three months earlier and 0.72% a year ago.
Operating profit rose 30% at Rs 185 crore.
Non-Interest income, such as that from its treasury operations and investment rose to Rs 99 crore in the final quarter of FY 2019 from Rs 85 crore a year ago.
“Our aim is to deliver measured and balanced growth while focusing on steady improvement in Cost to Income Ratio, Return on Assets and Return on Equity”, said Murali M. Natrajan, Managing Director & CEO, DCB Bank.
For the full year, the net profit of DCB Bank rose 33% to Rs 325 crore, while interest income at the bank for the FY 2019 is up 15.4% at Rs 1,149 crore.
As of March 31, 2019 the bank’s branch network stood at 333 at the end of FY 2019.
Headquartered in Mumbai, DCB Bank offers its products to individuals, small and medium businesses, rural banking and mid corporates across the branch network. It also serves a client base of NRI customers from over 100 countries across the world.
DCB Bank’s products and services range from loans for small and medium enterprises and mid corporate customers, to loans for individual needs such as home loan, commercial vehicle loan and small business loan.
DCB Bank has more than 6 lakh active customers worldwide.