Small-sized private sector lender DCB Bank today reported a marginal 5 per cent rise in net profit at Rs 47 crore for the June quarter of this fiscal, from Rs 45 crore in the year-ago period.
The bank said profit would have been higher had it not been for the doubling of taxation from this fiscal after it cleaned up its books.
During the quarter, the bank paid taxes at 34.6 per cent while till March, its effective tax rate was only 15.5 per cent, Managing Director and Chief Executive Murali M Natrajan said here.
The retail-focussed bank's assets grew 26 per cent to Rs 10,426 crore driven by higher advances in retail lending dominated by mortgaged-backed loans, which constitute 46 per cent of its loan book. But on a sequential basis, the loan book was flat, he said.
Its net NPAs rose marginally to 1.22 per cent from the earlier 0.97 per cent while gross NPAs were up at 1.96 per cent as two large loans turned dud.
Interest income rose to Rs 404 crore in the period under review from Rs 352 crore a year ago. Net interest income inched up to Rs 140 crore, taking the total income to Rs 204 crore.
Natrajan, however, expressed confidence that the bank will contain NPAs at the current level during the rest of the financial year.
During the reporting period, net advances grew to Rs 10,426 crore, up 26 per cent, while the net interest margin stood at 3.81 per cent, up from the earlier 3.71 per cent.
Going forward, Natrajan expects the loan book to grow at 20-22 per cent driven by retail, agri and SMEs.
The bank's capital adequacy ratio reads 14.27 per cent under Basel III, he said.
The bank looks to add some 30 branches and hire some 400. Currently, its branch network stands at 157 at 106 locations.
