On August 7, Mumbai-based DCB Bank Limited reported a decline of 57 per cent in net profit at ₹33.76 crore at the end of the June quarter as against ₹79.38 crore in the same quarter of 2020.
DCB Bank stated in a regulatory filing that the total income during April-June 2021-22 had increased to ₹965.67 crore from ₹950.70 crore in the year-ago period.
Furthermore, net interest income was reported to be ₹309 crore as of June 30 as compared to ₹307 crore last year. Net interest margin, as well as net interest income, were negatively affected due to higher slippages along with maintaining higher than “business as usual” liquidity.
As of June 30 2021, bad loans of the bank increased with gross non-performing assets (NPAs) rising to 4.87 per cent of gross loans. Net NPAs jumped to 2.82 per cent from 0.99 per cent at June-end last year and 2.29 per cent by the end of March 2021.
The Managing Director and CEO of DCB Bank, Murali Natrajan stated, “Our chosen strategy of focusing on secured small/ticket lending (as opposed to unsecured lending) for the past many years is certainly helping cope with the impact of COVID-19 lockdown(s) on our portfolio.”
He further added that with an assumption of the third wave to be less severe, they are expecting steady improvement in collections, recoveries as well as new business.