homemarket Newsstocks News

DCB Bank shares slump 14% on asset quality deterioration in Q1

DCB Bank shares slump 14% on asset quality deterioration in Q1

DCB Bank shares slump 14% on asset quality deterioration in Q1
Profile image

By CNBC-TV18 Jul 17, 2019 10:02:17 AM IST (Published)

Shares of DCB Bank fell 14 percent on Wednesday on asset quality deterioration in Q1. Reporting first-quarter results on Tuesday, the lender announced an uptick in its bad loan proportion.

Shares of DCB Bank fell 14 percent on Wednesday after the first-quarter earnings showed an uptick in the bank's bad loan proportion, with the gross non-performing assets (NPAs) rising to 1.96 percent as against 1.86 percent in the corresponding period of 2018.

Recommended Articles

View All

The stock fell as much as 14 percent to Rs 205.30 per share on BSE. At 9:43 AM, the stock was trading 12.8 percent lower at Rs 208, while the Sensex was unchanged at 39,134.
The fresh slippages also rose to Rs 145.4 crore, compared with Rs 107.1 crore a year ago. Net NPAs rose to 0.81 percent, compared with 0.72 percent a year ago.
The lender, however, reported a rise of 17 percent in its net profit to Rs 81 crore in Q1 against Rs 70 crore YoY. Total income during the quarter rose 10 percent to Rs 392 crore as against Rs 356 crore in the year-ago period, the bank said in a regulatory filing.
Net interest income moved up to Rs 305 crore from Rs 273 crore, while the non-interest income during the quarter stood at Rs 87 crore as compared with Rs 83 crore a year ago.
"We are focussing on granular retail term deposits in order to further improve our deposit profile. Some margin pressure will be felt for two more quarters, beyond which, we expect stability due to the re-pricing profile of long-term refinance and renewal cycle of customer deposits," said Murali M Natarajan, managing director, and chief executive officer, DCB Bank.
Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng