Shares of private sector lender DCB Bank today plunged 13.5 per cent, extending its previous session's sharp fall, after the company reported a 10 per cent decline in net profit for the September quarter and concerns over its expansion plans.
The stock slumped 13.53 per cent to settle at Rs 92.35 on BSE. During the day, it dipped 14.41 per cent to Rs 91.40.
On NSE, shares of the company declined 13.51 per cent to Rs 92.15 at close of trade.
In the previous session, the stock tumbled 20 per cent. The company's market valuation fell Rs 1,164.42 crore to Rs 2,617.58 crore in two days.
DCB Bank has reported a 10.1 per cent decline in net profit to Rs 36.93 crore for the second quarter ended September as against Rs 41.09 crore a year ago.
Its total income during July-September of 2015-16 rose to Rs 464.87 crore, compared with Rs 371.83 crore in the year-ago period, according to the bank's regulatory filing.
On the assets front, bank's gross non-performing assets (NPAs) as a percentage of gross advances moved slightly up at 1.99 per cent as against 1.9 per cent a year earlier.
Similarly, net NPAs, or bad loans, were at 1.16 per cent of the net advances in the second quarter, from 1.07 per cent a year earlier.
Meanwhile, DCB Bank has also said it will double its branches to over 310 over the next 12 months.
"We will be opening 150 more branches over the next 12 months, adding to our 160 branches now. We want to be future-ready as competition increases. We are in growth phase as we have cleaned up our balance sheet over the past few years," Murali M Natrajan, MD and CEO of DCB, told PTI.
Natrajan further said this faster expansion will see the bank taking a hit of Rs 90-100 crore on its bottom line over the next 2-3 years, after which the new branches will start paying back.
