DCB Bank slips 5%; stock hits 21-month low on asset quality concerns

The weakening in the asset quality was partly due to the bank's customer profile, mainly comprising small-ticket borrowers in the self-employed segment, that was more severely impacted by the pandemic

Shares of DCB Bank hit a 21-month low at Rs 74, down 5 per cent on the BSE in Tuesday’s intra-day trade, falling as much as 11 per cent in the past one week on assets quality concerns. The stock of private sector lender traded at its lowest level since June 2020.

In the past two weeks, the stock declined 16 per cent after the bank reported a 22 per cent year-on-year (YoY) decline in its net profit at Rs 75.37 crore for the quarter ended in December 2021 (Q3FY22). The bank's Net Interest Income (NII) rose marginally to