Highlights: Profit After Tax The Bank's Profit After Tax was at INR 65 Cr. in Q2 FY 2022 as against INR 82 Cr. in Q2 FY 2021. The Profit After Tax for Q1 FY 2022 was INR 34 Cr. Operating Profit The Operating Profit for Q2 2022 was INR 175 Cr. as against INR 213 Cr. for the same period as compared to last year. The Operating Profit for Q1 FY 2022 was INR 202 Cr. Net Interest Income The Bank earned Net Interest Income of INR 323 Cr. as against INR 334 Cr. for the same period as compared to last year. Net Interest Margin (NIM) improved slightly in Q2 FY 2022 as compared to Q1 FY 2022. NIM continues to be negatively impacted due to slippages and above normal liquidity maintained during this period. Non-Interest Income Non-Interest Income of INR 98 Cr. as against INR 81 Cr. for the same period as compared to last year, an increase of 21%. Cost Income Ratio Cost Income Ratio for Q2 FY 2022 was at 58.41% as compared to 48.61% in Q2 FY 2021. The Bank is consciously increasing its frontline headcount to capture the growth opportunities in the coming months. This may result in higher Cost / Income ratio in the near term. Return on Equity Return on Equity (ROE) (Annualized) was at 7.28% in Q2 FY 2022 as compared to 9.88% in Q2 FY 2021. ROE (Annualized) improved in comparison to Q1 FY 2022. Speaking on the Q2 FY 2022 results Mr. Murali M. Natrajan, Managing Director & CEO said, "The second quarter was much better than the first quarter of FY 2022. While slippages were higher than pre-covid levels, intense efforts on collections & recoveries coupled with improved environment helped to deliver substantial upgrades / recoveries. This also reflects the underlying resilience of the portfolio quality. New business disbursal picked up momentum and was much better than last year same period and this year first quarter. We are confident of steadily improving business performance in the coming quarters (assuming no further disruption by Covid-19)". Result PDF
DCB Bank announces First Quarter FY 2022 Results Highlights: Profit After Tax The Bank's Profit After Tax was at INR 34 Cr. in Q1 FY 2022 as against INR 79 Cr. in Q1 FY 2021. Operating Profit The Operating Profit for Q1 2022 was INR 201 Cr. as against INR 191 Cr. for the same period as compared to last year. Net lnterest lncome The Bank earned Net lnterest lncome of INR 309 Cr. as against INR 307 Cr. for the same period as compared to last year. Net lnterest Margin and consequently Net lnterest lncome was negatively impacted due to higher slippages and maintaining higher than "business as usual" liquidity. Non-lnterest lncome Non-lnterest lncome of INR 120 Cr. as against INR 77 Cr. for the same period as compared to last year, an increase by 55%. The Bank benefited from one-time treasury gains in Q1 FY 2022. Cost lncome Ratio Cost lncome Ratio for Q1 FY 2022 was at 53.09% as compared to 50.26% in Q1 FY 2021. The Bank is increasing its headcount in order to capture the growth opportunities in the coming months. This may result in higher Cost / lncome ratio in the near term. Return on Equity Return on Equity (Annualised) was at 3.79% in Q1 FY 2022 as compared to 9.86% in Q1 FY 2021. Capital Adequacy Capital Adequacy continues to be strong and as on June 30,2021 the Capital Adequacy Ratio was at 19.64% (with Tier 1 15.54% and Tier 2 4.10% as per Basel lll norms). Deposits The Bank has been steadily growing the Retail Term Deposits (less than INR 2 crores) and reducing Bulk Deposits. As on June 30, 2021,the top 20 deposits ratio significantly reduced to 6.42% as compared to 8.68%. as on June 30, 2020. The top 20 deposit ratio was 6.98% as on March 31,2021. In Q1 FY 2022 the Bank grew its Retail Term Deposits by 17% as compared to Q1 FY 2020. The Bank has been intentionally reducing Bulk and interbank Deposits. During Q1 FY 2022,lnter Bank Term Deposit were at INR 2,614 Cr. reduced by 24% as compared to INR 3,433 Cr. as on June 30, 2020. The Certificate of Deposits as on June 30,2021, was NlL. Advances The main target market of the Bank is MSME/SME segment. ln terms of products, the Bank is focused on growing Business Loans (LAP), Home Loans, Gold Loans, MSME/SME Working Capital, KCC (Kissan Credit Gard), Tractor Loans, Loans to MFls and MFI-BC Loans. Recently, the Bank has embarked on funding MSMEs in the TREDs platforms. Also, in Q1 FY 2022, the Bank embarked upon Gold Loans CoLending with a reputed NBFC. ln Corporate segment, the Bank is mostly targeting short term loans. ln Q1 FY 2022, Advances increased by 438 Cr. as compared to Q1 FY 2021. As compared to June 30,2020, Home Loans grew by 18%, Gold Loans by 123%, Agri & inclusive Banking by 6%. Advances comprises of 22% Home Loans and almost 8% of Gold Loans. ln Q1 FY 2022,the new loans disbursal was impacted by lockdowns and restrictions. The new business and enhancement opportunities were limited. ln Ql FY 2022,the Bank disbursed INR 1,530 Cr. (Mortgage INR 315 Cr., Gold Loans INR 302 Cr., Agri& lnclusive Banking INR 372 Cr., MSME/SME INR 31 Cr. Construction Finance INR 62 Cr., Commercial Vehicle INR 26 Cr., Corporate Banking INR 283 Cr., Co-Lending INR 139 Cr.) The Bank's Corporate Loans portfolio was at 11% of Net Advances as on June 30, 2021 and the top 20 exposures of the Bank were at 4.94% as on June 30, 2021 .This is one of the lowest in the industry. Further, the Advances at ticket size of INR 3 Cr. and below, constitute approximately 86% of the total Advances as on June 30,2021. This is one of the most granular Advances portfolios in the industry. Result PDF