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DCB Bank on Tuesday said its net profit for the quarter ended March 2014 rose 14.7 per cent from a year earlier to Rs 39 crore aided by higher interest income and improved margins. The private lender's profit after tax for 2013-14 (April-March) was at Rs 151 crore compared to Rs 102 crore a year earlier.
"Given the challenges faced by the economy and the banking industry, we are satisfied with our performance. We will continue to be conservative in our approach," Nasser Munjee, chairman, said.
Net interest income, or thedifference between interest income and interest expense, increased by 22 per cent to Rs 100 crore during the quarter. Net interest margin improved by sevenbasis points from a year earlier to 3.59 per cent during January-March quarter.
"We have to be watchful, workhard and over manage stress accounts in SME and corporate portfolio until there is improvement in economic conditions. At the same time, we need to keepexpanding our business in a calibrated manner," Murali M Natrajan, managingdirector and chief executive officer at DCB Bank, said.
Net non-performing asset ratioincreased by 16 basis points from a year earlier to 0.91 per cent at the end of March, 2014.The bank's net advances grew by 24 per cent, on a year-on-year basis, to Rs 8,140 crore at the end of the financial year. Deposits were at Rs 10,325 crore at the end of March, 2014, up 23 per cent from a year earlier.DCB Bank closed the financial yearwith a capital adequacy ratio of 13.71 per cent as per Basel III rules.
