Share of DCB Bank rose over 3 per cent in early trade today after the lender reported a 13 per cent year-on-year (YoY) jump in its net profit for the quarter ended March 2021. The bank reported a net profit of Rs 78 crore compared to Rs 68 crore in the same quarter a year ago.
Net Interest Income (NII) declined 4 per cent to Rs 311 crore in the March quarter compared to Rs 324 crore in Q4FY20. Gross non-performing assets (NPA) rose to 4.09 per cent in Q4FY21 against 2.46 per cent by the end of March last year. Net NPAs stood at 2.29 per cent from 1.16 per cent, up 113 basis points on a year on year basis.
Operating profit for FY21 stood at Rs 898 crore as against Rs 753 crore for the same period a year ago, an increase of 19 per cent.
The bank informed that as compared to March 31, 2020, home loans grew by 15 per cent, Gold loans grew by 172 per cent and Agri and Inclusive banking grew by 7 per cent.
"In addition to this contingency provision of Rs 124 crore, the bank also holds floating provision amounting to Rs 108.80 crore, besides, provisions for standard assets and specific non-performing assets," the bank said.
"The board has not recommended any dividend for fiscal ended March 2021 in view of the situation developing around Covid-19 in the country and the related uncertainty that it creates," it added.
"The sudden increase in Covid-19 infections on account of second wave has once again necessitated curfews, restrictions and lockdowns," said Murali M Natrajan, Managing Director and CEO, DCB Bank.
"As for now, it appears that much of Q1 FY22 may be consumed by dealing with second wave and normally may return only by end of June 2021. The current situation is having some impact on Collections Efficiency and new business," he added.