Updated on: Saturday, October 30, 2021, 06:50 PM IST

DCB Bank Q2 results: Net profit down 21% at Rs 65 cr

DCB Bank had posted a net profit of Rs 79.38 crore in the year- ago period.

 | telanganatoday

DCB Bank had posted a net profit of Rs 79.38 crore in the year- ago period. | telanganatoday


DCB Bank on Saturday reported a 21 percent fall in its net profit at Rs 64.94 crore in the quarter ended September 2021 of this fiscal.

The bank had registered a net profit of Rs 82.29 crore in the same quarter of the previous fiscal year.

Total income during the July-September period of 2021-22 was up slightly at Rs 967 crore from Rs 959.33 crore in the same period of 2020-21, DCB Bank said in a regulatory filing.

However, the bank's income from interest was down at Rs 869.27 crore in the reported quarter, as against Rs 878.45 crore in the year-ago period.

There was a dent on the bank's asset quality, as gross non-performing assets (NPAs) were up 4.68 percent of the gross advances by end of September 2021 from 2.27 percent in the year-ago period. It was down from 4.87 percent by end of June 2021.

Likewise, net NPAs (or bad loans) too rose to 2.63 percent from 0.83 percent. In absolute terms, gross NPAs were worth Rs 1,284.93 crore as against Rs 573.70 crore, while net NPAs were Rs 706.95 crore, up from Rs 205.77 crore.

Citing the September 2020 interim order of the Supreme Court, that directed banks that accounts that were not declared NPA till August 31, 2020, shall not be declared as NPA till further orders, it said the bank has not classified any account which was not NPA as of August 31, 2020, as NPA for the period ended September 30, 2020.

''However, if the bank had classified borrower accounts as NPA after August 31, 2020, the bank's proforma gross NPA ratio and proforma net NPA ratio would have been 2.39 percent and 0.92 percent, respectively for the period ended September 30, 2020.'' Provisions for bad loans and contingencies for the quarter, however, we're down at Rs 86.33 crore as against Rs 101.45 crore.

The bank said it holds a contingency provision of Rs 78.46 crore during the quarter ended September 30, 2021, towards the further likely impact of COVID-19 on standard restructured and stressed assets.

''As on September 30, 2021, in addition to this contingency provision mentioned, the bank also holds floating provision amounting to Rs 115.07 crore, besides provisions for standard assets and specific non-performing assets,'' DCB Bank said.

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Published on: Saturday, October 30, 2021, 06:50 PM IST