Private sector lender DCB Bank reported all-round improvement in the bank’s financial performance for the final quarter of FY2018, at a time when the sector is undergoing major stress over bad loans.

The bank’s net profit rose to 64 cr for the final quarter from Rs 53 cr in the same quarter a year ago.

For the full year, net profit rose 23% on year to Rs 245 cr, even as most of the banks in India slipped deep in the red due to loan defaults.

Fourth quarter net interest income rose 20% on year to Rs 264 cr. With this, the full-year net interest income at the bank is up 25% at Rs 995 cr.

Against gross non-performing assets (bad loans) in the double digits for several big banks, DCB Bank reported a gross NPA of just 1.79% at the end of the year, down from 1.89% three months earlier, but up from 1.59% in the year-ago period.

Net NPAs, which excludes bad loans for which the bank has already made provisions or write-offs, fell to 0.72% of total loans from 0.87% three months earlier and 0.79% a year ago.

Profit before tax rose 26% on year to Rs 103 cr for the fourth quarter, while operating profit was up 23% at Rs 142 cr.

Non-Interest income, such as that from its treasury operations and investments, rose to Rs 85 cr from Rs 63 cr.

Murali M. Natrajan, Managing Director & CEO said the bank’s branch expansion strategy seems to be delivering expected outcomes. Total number of branches stood at 318 at the end of FY18.

“So far we are making satisfactory progress,” he said. “Our intention is to achieve steady, consistent and profitable growth while ensuring low NPAs.”

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