Development Credit Bank (DCB) today said it reported a net profit of Rs 8.8 crore for the quarter ended June 30 compared with a loss of Rs 2.9 crore in the corresponding period last year. Lower provisions and higher interest income aided the bank’s earnings during the quarter.
Net interest income, or the difference between interest income and interest expense, expanded 21 per cent to Rs 52 crore during the period from a year ago. Net interest margin, however, narrowed to 3.10 per cent from 3.12 per cent.
Provisions were reduced substantially to Rs 7.7 crore from Rs 25.5 crore a year ago on the back of improving asset quality. The gross non-performing asset ratio of the bank improved to 5.90 per cent.