Private sector lender DCB Bank on Saturday posted a 44.87 per cent rise in its net profit at Rs 113 crore for the quarter ended March 2022.
The bank had registered a net profit of Rs 78 crore in the same quarter a year ago.
Total income in the March quarter of the fiscal year 2021-22 increased to Rs 1,035 crore, as against Rs 967 crore in the same quarter of 2020-21, DCB Bank said in a regulatory filing.
Net interest income during the quarter rose to Rs 380 crore, from Rs 311 crore.
Bank’s asset quality, however, showed a slight impairment from the year-ago period at 4.32 per cent of the gross advances as of March 31, 2022, as against 4.13 per cent by March 2021. However, it improved sequentially from 4.78 per cent at the end of December 2021.
In value terms, the gross NPAs stood at Rs 1,290 crore in the period under review, as against Rs 1,083 crore.
On the other hand, the net NPAs or bad loans fell 1.97 per cent (Rs 573 crore), as against 2.31 per cent (Rs 594 crore) in the year-ago period.
However, the net profit for full year FY2022 decreased by 14.3 per cent to Rs 288 crore, from Rs 336 crore in FY2021.
The board of directors have recommended a dividend of Rs 1 per share at 10 per cent for the year ended March 31, 2022, subject to shareholders’ approval in the ensuing Annual General Meeting, DCB Bank said.
The main target market of the bank is the MSME/SME segment. In terms of products, the bank is focused on growing home loans, business loans (LAP), gold loans, MSME/SME (CC/OD/Term), KCC (Kisan Credit Card), tractor loans, loans to MFls and MFI-BC Loans, it said.
In the corporate segment, the bank continues to cautiously target short-term loans.