DCB Bank posts 38 per cent rise in net profit

MUMBAI: Private sector lender DCB Bank reported a 38% rise in net profit for the first quarter of this year amidst a slight worsening of the quality of assets held by the bank.

In a filing to the stock exchanges, the bank reported a net profit of Rs 65 crore against Rs 47 crore last year. The rise in net profit comes along with a rise in provisions made by the bank against loans that could go bad. Provisions have gone up to Rs 35 crore against Rs 20.5 crore a year earlier.

The net interest income or the income generated from loans forwarded by the bank rose to Rs 233 crore against Rs 177 crore last year, a 31% jump.

The ratio of non-performing assets or loans for which repayment has not happened on time against total advances remained almost flat at 0.92% against 0.87% a year earlier.

In a statement to the media, the bank’s chief executive officer, Murali Natarajan said that the bank has almost completed its branch expansion plans and will continue to remain careful about balancing growth with asset quality.

In a separate filing to the exchanges the bank also notified that its board has appointed Iqbal Ishaq Khan as an additional director and has accepted the resignation of Keki Elavia from the directorship of the bank.