DCB Bank today reported an almost 15 per cent jump in net profit to Rs 39.07 crore in the March quarter from Rs 34.11 crore in the same period last year.
For the full year (FY14), the private lender's profit rose to Rs 151.36 crore from Rs 102.06 crore in the financial year ended March 31, 2013.
DCB Bank Managing Director and Chief Executive Officer Murali M Natrajan attributed the increase in profit to diversification of the loan portfolio and cutting exposure to sectors such as micro, small and medium enterprises and companies.
The mid-sized bank's gross non-performing assets (NPAs) came down to 1.69 per cent in the fourth quarter ended March 31 from 3.18 per cent in the year-ago period.
Net NPAs rose to 0.91 per cent in Q4 from 0.75 per cent due to slippage in a small and medium enterprise account, he said.
The bank recast a corporate loan worth Rs 35 crore in the January-March period and for FY14, its total restructuring was Rs 70 crore.
With improved asset quality, the lender's net interest margin (NIM) rose to 3.59 per cent in Q4 from 3.52 per cent. For FY14, NIM improved to 3.56 per cent from 3.34 per cent.
Asked about the dilution of the promoter's shareholding to 10 per cent by March 31 as per RBI direction, Natrajan said, "We are in touch with the Reserve Bank. Hopefully, we will get some more time to adhere to the norm."
DCB Bank's promoters, the Aga Khan Fund for Economic Development and Platinum Jubilee Investments, held 18.46 per cent stake at the end of March.
Provisions in the quarter stood at Rs 11.04 crore as against Rs 8.89 crore, while for FY14 it was Rs 37 crore as against Rs 24 crore in FY13.
Deposits grew 7.6 per cent in the quarter and loans were up 10.6 per cent. In FY14, loan growth stood at 24 per cent, while deposits grew 23.6 per cent.
DCB Bank shares rose 0.61 per cent to Rs 65.75 at the close on the BSE, while the benchmark Sensex index declined 0.64 per cent to 22,484.93.
Natrajan said the bank wants to increase its asset book by 23-25 per cent and double the balance sheet in the next three years.
He said the bank has received board approval to raise up to Rs 300 crore as tier-I capital. The money, to be mopped up in the next 12-15 months, will help the lender lower the promoter holding.
