 "DCB Bank to go slow with branch expansion plan")
Private-sector lender DCB Bank today said it will go slow with its branch expansion plan and will open around 150 additional branches over a period of 24 months instead of 12 months announced two days back.
On October 13, the lender said it plans to double its branch network within 12 months. It announced plans to add 150+ branches to its existing network of 160 branches.
The bank today altered its aggressive branch expansion plan after it received feedback on the same from investors, analysts and other stakeholders.
"In the view of feedback received, and in close consultation with our Chairman, the management team has decided to install 150+ branches in a cautious, prudent and calibrated manner over a period of 24 months (instead of 12 months)," the bank said in filing to stock exchanges.
It said the management team will work out the financial estimates for the revised branch roll-out approach in the next two weeks or so.
In the quarter ended September 30, the bank posted a 10% fall in profit at Rs 36.93 crore as against Rs 41.09 crore last year.
On the assets front, bank's gross non-performing assets (NPAs) as a percentage of gross advances moved slightly up at 1.99% as against 1.90% a year earlier.
Net NPAs, or bad loans, were at 1.16% of the net advances in the second quarter, from 1.07% a year earlier.
During the last two days, shares of DCB Bank had tanked over 30% on concerns over its aggressive branch expansion plans and fall in profit.
Its shares was trading at Rs 95.80, up 3.68%, on BSE today.
