DCB Bank Q1 net falls 57.5% to ₹34 cr
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DCB Bank reported a 57.5 per cent drop in its standalone net profit in the first quarter of the fiscal as provisions surged.
The private sector lender had a net profit of ₹33.76 crore for the quarter ended June 30, 2021 against ₹79.38 crore in the corresponding period last fiscal.
Total income was up by 1.6 per cent to ₹965.67 crore in the first quarter of the fiscal from ₹950.7 crore a year ago.
Net interest income saw marginal growth of 0.6 per cent on a year-on-year basis to ₹308.7 crore in the quarter ended June 30, 2021 from ₹306.73 crore a year ago.
Provisions surged by 85.9 per cent to ₹155.54 crore in the April to June 2021 quarter as against ₹ 83.69 crore in the first quarter of last fiscal.
During the quarter ended June 30, 2021, the bank holds contingency provision of ₹107.53 crore towards further likely impact of Covid-19 on standard restructured and stressed assets.
Asset quality deteriorated
Gross non-performing assets rose to 4.87 per cent of gross advances as on June 30, 2021 versus 2.44 per cent a year ago. Net NPAs also increased to 2.82 per cent of net advances as on June 30, 2021 compared to 0.99 per cent a year ago.
During the quarter, the bank sold certain non-performing loans of net book value of ₹43.99 crore to an asset reconstruction company for consideration of ₹38.77 crore.
The bank has implemented resolution plans for Covid-19 related stress under Reserve Bank of India’s August 6, 2020 circular for 2,149 accounts.
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