Private sector lender DCB Bank has reported a rise in net profit by 50 percent to Rs 96 crore during the fourth quarter ended March on healthy core income and restricted bad assets. The bank's net profit was Rs 64 crore in the corresponding January-March quarter of 2017-18.
Its total income rose 15 percent to Rs 400 crore during the quarter, compared with Rs 349 crore in the corresponding period of the fiscal ended March 2018, the bank said in a release.
Murali M Natrajan, MD and CEO, DC Bank, spoke about the results and gave his outlook for the future.
"Our loan growth overall has been 16 percent year-on-year (YoY)," said Natrajan.
“In terms of nonperforming assets (NPA), I am glad to say that our business model is such that our NPA gross should be less than 2 percent and net should be less than 1 percent and we have been able to maintain that. There has been strong recoveries in Q4. Therefore, we have been able to maintain the quality of book,” he said.
“Barring any unforeseen situation in the next year or so we believe that we should be able to maintain this kind of quality of portfolio,” Natrajan added.
On slippages and recovery front, he said Q4 slippages is at Rs 98 crore and recoveries at Rs 82 crore.
On capital requirement, Natrajan said, “Q4 margin was 3.78 percent, the full year is at 3.83 percent. Given our deposit profile, I believe that we may have some compression coming up in the first two quarters but based on our business model we believe that we can stabilise at about 3.70-3.75 basis points (bps).”