Development Credit Bank (DCB) today reported a Rs 8.8 crore profit for the first quarter ended June 30 as against a net loss of Rs 2.9 crore in the year-ago period, driven by a surge in retail deposits and lower provisioning.
Provisions came down substantially in the reporting quarter and stood at Rs 7.7 crore as against Rs 25.5 crore in the April-June quarter last fiscal. Net advances grew to Rs 4,234.4 crore up from Rs 3,478.8 crore, the bank said in a statement issued here.
"The opportunity to grow advances is limited in an environment when cost of funds continues to increase. We need to take measured steps and calibrate growth for the next few months," the bank's Managing Director and Chief Executive Officer Murali M Natrajan said in the statement.
The bank had a net interest margin of 3.10% as against 3.12% in the same period last fiscal.
Deposits grew by 16.91% to Rs 5,980 crore, while capital adequacy of the lender stood at 12.92%.
"We expect the first two quarters to be muted and once the interest rate situation starts to stabilise, then growth momentum should be much better," Chairman Nasser Munjee said.
As on June 30, the balance-sheet stood at Rs 7,622 crore as against Rs 6,373 crore, in the year ago period.
DCB has 82 branches across 10 states and two Union Territories. Its business segments include retail, micro-SMEs, large SMEs, mid-corporates, micro-finance institutions, agriculture and commodities.
