DCB Bank reports net profit flat at Rs 47 crore in first quarter

MUMBAI: Private Bank, DCB Bank’s net profit remain almost flat at Rs 47 crore in the first quarter of the fiscal year 2015-16 against Rs 45 crore in corresponding quarter due to one-off adjustments against income tax refund it had received last year.

The bank had received income tax refund of Rs 30 crore in the first quarter June 2014 which was reflected in net interest income. Secondly, since the bank has wiped out losses posted rs 88 crore loss in 2008-09 at Rs 78 crore in 2009-10, it is now required to pay higher taxes at 34% from 15% in corresponding quarter.

The bank’s net interest margin stood at 3.81%, up from 3.71%. "In the coming quarters the NIM may shrink by 25 to 30 basis points as we will have to reduce our base rate once our cost of funds comes down," said Murali Natrajan, MD & CEO of DCB Bank told ET.

The bank’s net interest income was flat at Rs 140 crore. It earned Rs 30 crore interest on the income tax refund in first quarter last year. This non-interest income rose 85% to Rs 63 crore mainly on account of treasury profits. The shares of the bank closed at Rs 141 on Tuesday, 3.8% lower than previous days close.
The net non-performing assets – bad loans after making provisions- rose to 1.22% from 0.97%. “Going forwards, we do not see any major stress in our loan portfolio as this point of time,” said Natrajan.

Net advances rose 26% to Rs 10426 crore while deposits rose 25% to Rs 13269 crore. CASA- the share of low cost deposits was 23% from 25% a year ago.