Re: {LONGTERMINVESTORS} Re: Development Credit Bank - Discussion Thread
RAJESH DESAI
Private sector lender Development Credit Bank ’s (DCB) fourth quarter (Jan-March) net profit climbed 52% year-on-year to Rs 17.3 crore on back of robust loan book that expanded 23% y-o-y to Rs 5,284 crore. For the full fiscal year, net profit rose nearly three-fold to around Rs 55 crore as against Rs 21 crore a year back.
During the year, net interest income or the difference between interest earned and spent rose more than 20% to Rs 228 crore. Net interest margin (NIM) stood at 3.25% as against 3.13% a year ago. The entire banking industry has seen a credit growth of around 16.80% y-o-y.
"We are growing MSME, SME and Retail Mortgages with a strong focus on quality,"Murali M. Natrajan, Managing Director & CEO, DCB said in a release.
"NIMs will be a challenge for the first few months of FY 2013 as a lot of term deposits are continuing to get re-priced upwards. Our aim would be to continue to steadily improve the performance of the Bank in the coming years."
The bank's deposit base grew at a slower pace 13% y-o-y at Rs 6,336 crore while its share of current account savings account (CASA) to total deposits fell from 35.21% to 32.12% in the FY12. CASA is a cheap source of funds for lenders who usually pay 0-4% rate of interest on it compared with 9%-12% in other instruments.
However, DCB has managed to improve its asset quality. Its gross non-performing asset (NPA) ratio dropped from 5.85% to 4.40% in the 12 month period. Net NPA ratio too fell from 0.96% to 0.57%. Provisions stood at Rs 29 crore as against Rs 65 crore in FY11.
DCB shares fell nearly 5% to close at Rs 48.15 at the end of Friday's trading.
saika...@network18online.com--
CA. Rajesh Desai
RAJESH DESAI
Development Credit Bank: Rise in interest income brings in turnaround Q1 performance
3 Aug 2012, 1202 hrs IST,
Crystal Barretto
The growth came on the back of a 23% rise in net interest income as well as lower provisioning. Net interest income is the difference between interest earned and interest spent.
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CA. Rajesh Desai
Rajesh Desai
Cordially invites you to a
Quarterly Earnings Call
to discuss the financial performance during Q1FY14
Day/Date: Wednesday, July 17, 2013
Time: 4.00 pm
Access numbers
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Dial-in Numbers | |
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Primary Number | |
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Secondary Number | |
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The numbers listed above are universally accessible from all networks and all countries. | |
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Toll Free Number |
USA: 1 866 746 2133 |
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UK: 0 808 101 1573 | |
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Singapore: 800 101 2045 | |
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Hong Kong: 800 964 448 | |
Management Participants
Mr. Murali M Natrajan, MD & CEO, DCB Bank
Mr. Bharat Sampat, CFO, DCB Bank
We look forward to your participation
RSVP
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Meghana Rao Development Credit Bank
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Neha Goenka/Kailash Yevale Adfactors PR Pvt. Ltd
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CA. Rajesh Desai