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DCB Bank today said its net profit for the quarter end March 31, 2013 doubled to Rs 34 crore from Rs 17 crore a year earlier as the bank improved its margin and expanded its loan portfolio.
Net interest income, or the difference between interest income and interest expense, increased 44% year-on-year to Rs 82 crore. Net interest margin for the quarter was at 3.52%, up 40 basis points from the corresponding period of previous year.
The private lender's profit after tax for financial year 2012-13 rose 85% to Rs 102 crore.
"Over the last three years we have almost doubled the balance sheet and advances. We have crossed Rs 10,000 crore balance sheet," Murali M Natrajan, managing director and chief executive of DCB Bank, said in his post earnings comments.
Net advances increased by 25% to Rs 6,586 crore while deposits expanded by 32% to Rs 8,364 crore at the end of March, 2013. The bank's balance sheet was at Rs 11,279 crore at the end of 2012-13 compared to Rs 8,677 crore a year earlier.
Retail deposits comprised of 77% of the bank's total deposits while the share of current account savings account (CASA) deposits was 27.2%.
The bank also improved its asset quality with gross non-performing loan ratio improving by 62 basis points to 3.18% at the end of March, 2013. Net non-performing asset ratio was a tad higher at 0.75% compared to 0.73% a year ago.
"Discipline and hard work has helped us deliver consistent performance. We aim to build on our success while remaining cautious," Nasser Munjee, chairman of DCB Bank, said.
The bank closed the financial year with a capital adequacy ratio of 13.61% and tier I ratio of 12.62%.
