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DCB Bank

24-Oct-2026 | 11:36
Healthy performance with improved growth and asset quality
DCB Bank has reported 29% growth in net profit at Rs 236.39 crore for the quarter ended September 2026 (Q2FY2027). Net Interest Income (NII) increased 17% while the core fee income of the bank also improved 23% in Q2FY2027. The Net Interest Margin (NIM) of the bank moved up to 3.25% in Q2FY2027 compared to 3.23% in the corresponding quarter of previous year.

On business front, the business growth accelerated to 20% at end September 2026 from 19% at end March 2026, as the loan book growth accelerated to 21%. CASA ratio of the bank has declined to 22.3% at end September 2026 from 23.5% at end September 2025.

Healthy NII growth: Interest income increased 12% to Rs 2050.43 crore, while interest expenses moved up 10% to Rs 1351.75 crore in Q2FY2027. NII improved 17% to Rs 698.68 crore in Q2FY2027.

Margins improve yoy, ease qoq: The bank has shown 31 bps YoY decline in cost of deposits to 6.65%, while yield on advances declined 38 bps YoY to 10.73% in Q2FY2027. NIM has improved 2 bps YoY, while it fell 10 bps qoq to 3.25% in Q2FY2027.

Healthy growth in the core fee income: The non-interest income of the bank increased 34% to Rs 249.32 crore in Q2FY2027. Bank has posted strong 23% growth in core fee income to Rs 195 crore, while the treasury income improved 22% to Rs 28 crore and forex income jumped to Rs 16 crore. Further, the other income galloped 46% to Rs 10 crore in Q2FY2027.

Expense ratio improves: The operating expenses of the bank increased 18% to Rs 565.41 crore, as other expenses moved up 20% to Rs 282.26 crore, while employee expenses rose 16% to Rs 283.15 crore in Q2FY2027. Cost to income ratio improved to 59.6% in Q2FY2027 compared with 61.2% in Q2FY2026. Operating Profit moved up 26% to Rs 382.59 crore.

Provisions and contingencies increase: The bank has shown 7% increase in provisions to Rs 65 crore in Q2FY2027.

PBT increased 31% to Rs 318.05 crore in Q2FY2027. Effective tax rate increased to 25.7% in Q2FY2027 from 24.4% in Q2FY2026. Net Profit increased 29% YoY to Rs 236.39 crore in Q2FY2027.

Asset quality improves: The bank has improved asset quality in Q2FY2027.

The fresh slippages of loans stood at Rs 438 crore in Q2FY2027 compared with Rs 407 crore in previous quarter and Rs 402 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 236 crore and upgrades were at Rs 191 crore, while the write-off of loans was at Rs 4 crore in Q2FY2027.

The standard restructured loan book of the bank declined to Rs 730 crore end September 2026 compared to Rs 756 crore a quarter ago.

Provision coverage ratio improved to 81.38% at end September 2026 compared to 79.81% a quarter ago and 74.15% a year ago.

The capital adequacy ratio of the bank stood at 16.6% with Tier I ratio at 14.6% at end September 2026.

The risk weighted assets of the bank has increased 18% YoY to Rs 45661 crore end September 2026.

Asset Quality Indicators: DCB Bank

 

Sep-26

Jun-26

Mar-26

Dec-25

Sep-25

Variation

QoQ

YTD

YoY
Gross NPA (Rs Crore)

 1489.12

 1481.74

 1495.73

 1567.51

 1568.03

 0

 0

 -5
Net NPA (Rs Crore)

 465.29

 504.34

 533.97

 622.98

 640.54

 -8

 -13

 -27
% Gross NPA

 2.29

 2.43

 2.45

 2.72

 2.91

 -14

 -16

 -62
% Net NPA

 0.73

 0.84

 0.89

 1.10

 1.21

 -11

 -16

 -48
% PCR

 81.38

 79.81

 78.42

 75.35

 74.15

 157

 296

 723
% CRAR - Basel III

 16.63

 17.03

 16.55

 15.84

 16.41

 -40

 8

 22
% CRAR - Tier I - Basel III

 14.57

 14.90

 14.26

 13.45

 13.97

 -33

 31

 60

Variation in basis points for figures given in percentages and in % for figures in Rs crore
 

Business Highlights:

Business growth improves: The business of the bank has increased at an accelerated pace of 20% YoY to Rs 140966 crore end September 2026, as advances growth improved to 21% to Rs 64127 crore and deposits growth moderated to 19% to Rs 76839 crore at end September 2026. With the faster growth in advances, the credit to deposit ratio rose to 83.5% at end September 2026 from 81.8% at end September 2025.

CASA deposits ratio improves qoq: The CASA deposits of the bank increased 12% YoY to Rs 17135 crore at end September 2026. The current account deposits moved up 6% to Rs 2536 crore, while saving account deposits increased 14% to Rs 14599 crore end September 2026. The CASA ratio eased to 22.3% at end September 2026 compared to 23.5% at end September 2025, while increased from 21.7% a quarter ago. The term deposits have increased 21% to Rs 59704 crore end September 2026. The NRE deposits have dipped 0% to Rs 0 crore end September 2026.

Strong loan growth: Within the loan book, the retail loans increased 36% YoY to Rs 23540 crore at end September 2026, while credit to agriculture moved up 22% to Rs 2460 crore and MSME credit rose 8% to Rs 32748 crore. The corporate credit has also increased 55% to Rs 5379 crore end September 2026. The share of retail, agriculture and MSME (RAM) eased to 91.6% at end September 2026 compared to 93.5% at end September 2025.

Investment book of the bank increased 4% YoY to Rs 21375 crore at end September 2026.

Branch expansion: The bank added 3 branches in Q2FY2027, taking overall tally to 483 branches at end September 2026.

Book value of the bank stood at Rs 206.6 per share at end September 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 189.9 per share at end September 2026.

Financial Performance H1FY2027:

Bank has posted 32% increase in net profit to Rs 449.59 crore in the half year ended September 2026 (H1FY2027). The net interest income increased 18% to Rs 1382.63 crore, while non-interest income moved up 6% to Rs 445.65 crore, leading net total income to increase 14% to Rs 1828.28 crore in H1FY2027. The operating expenses increased 14% to Rs 1101.65 crore, while provision and contingencies dipped 31% to Rs 121.61 crore. PBT increased 33% to Rs 605.02 crore in H1FY2027. The cost-to-income ratio improved to 60.3% in H1FY2027 compared to 60.5% in H1FY2026. An effective tax rate rose to 25.7% in H1FY2027 compared to 25.0% in H1FY2026. The net profit has increased 32% to Rs 449.59 crore in H1FY2027.

DCB Bank: Results

Particulars

2609 (3)

2509 (3)

Var %

2609 (6)

2509 (6)

Var %

2603 (12)

2503 (12)

Var %
Interest Earned

 2050.43

 1822.75

 12

 4034.74

 3636.32

 11

 7404.46

 6470.59

 14
Interest Expended

 1351.75

 1226.54

 10

 2652.11

 2459.67

 8

 4947.93

 4364.02

 13
Net Interest Income

 698.68

 596.21

 17

 1382.63

 1176.65

 18

 2456.53

 2106.57

 17
Other Income

 249.32

 186.09

 34

 445.65

 422.21

 6

 855.14

 750.51

 14
Net Total Income

 948.00

 782.30

 21

 1828.28

 1598.86

 14

 3311.67

 2857.08

 16
Operating Expenses

 565.41

 478.38

 18

 1101.65

 968.05

 14

 2015.92

 1820.08

 11
Operating Profits

 382.59

 303.92

 26

 726.63

 630.81

 15

 1295.75

 1037.00

 25
Provisions & Contingencies

 64.54

 60.53

 7

 121.61

 175.67

 -31

 318.78

 208.39

 53
Profit Before Tax

 318.05

 243.39

 31

 605.02

 455.14

 33

 976.97

 828.61

 18
Provision for tax

 81.66

 59.48

 37

 155.43

 113.97

 36

 245.41

 213.28

 15
PAT

 236.39

 183.91

 29

 449.59

 341.17

 32

 731.56

 615.33

 19
EPS*(Rs)

 30.3

 23.6

  

 27.9

 21.2

  

 22.7

 19.6

  
Equity

 322.2

 321.2

  

 322.2

 321.2

  

 321.9

 314.3

  
Adj BV (Rs)

 189.9

 157.4

  

 189.9

 157.4

  

 171.9

 151.2

  

* EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore

Source: Capitaline Corporate Database
 

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