DCB Bank Ltd. News and Updates

Name: Latest research reports of DCB Bank Ltd. authored by Arihant Capital and published by - Trendlyne research reports.
Item: DCB Bank Ltd.
Rating: 3
Author: Arihant Capital

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DCB Bank Ltd.

17 Jul 2019

127.06

0.40%

DCB Bank

Hold: DCB Bank Ltd.

Recommendation Target

Arihant Capital

DCB Bank started Q1FY20 on a weaker note led by lower loan growth and margin pressure. It has reported 17% YoY profit growth & muted 10% YoY growth in total income. Advances growth moderated to 13% YoY on the back of de-growth in the Corporate Loan book and decline in NIMs. Asset quality saw marginal deterioration while corporate book saw some writeoffs in 1QFY20. Given the management's focus towards increasing share of Retail Deposits, cost of deposits continued to increase further and consequently, NIM was declined by 11bps QoQ and 23 bps YoY. We expect asset quality and growth concern to weigh on the bank's earnings visibility....

DCB Bank Ltd. is trading below its 50 day SMA of 132.4

DCB Bank Ltd.

17 Jul 2019

127.06

0.40%

DCB Bank

Buy: DCB Bank Ltd.

ICICI Securities Limited

Other income growth came in lower at ~5% YoY to ~| 87 crore, on the back of de-growth of ~9% YoY in CEB book, which was at ~| 55 crore in Q1FY20 (~| 65 crore in Q4FY19). Lower growth in CEB book is attributable to lower credit growth & one off loss in ATM fee income of | 3 crore. Operating profit came in at ~| 167 crore, up 18% YoY, well below our estimates (~| 201 crore) led by muted NII & other income growth. PAT came in at | 81 crore, significantly below estimates. Slippages for the quarter surged 38% YoY to | 148 crore led by stress in...

DCB Bank Ltd. is trading below its 50 day SMA of 132.4

DCB Bank Ltd.

17 Jul 2019

127.06

0.40%

DCB - 1QFY20 Result Update

Hold: DCB Bank Ltd.

Recommendation

Reliance Securities

DCB Bank has delivered a sub-par performance in 1QFY20 led by decline in loan growth to 13% YoY, sequential rise in fresh slippages and NPAs, and continued pressure on margin. Sequential loan growth (at 2% QoQ) moderated across key segments, including mortgage, SME and AIB, though CV and AIB loan growth was healthy at over 25% YoY. Segmental NPAs were higher across segments, barring corporate, where decline in NPA was mainly driven by higher write-offs. Consequently, provision coverage (excluding technical-write-offs) also declined by 600bps QoQ to 59%. Given the management's focus towards increasing share of retail deposits, cost of deposits continued to rise and consequently, NIM was lower by 11bps QoQ and 23 bps YoY. We expect interim...

DCB Bank Ltd. is trading below its 50 day SMA of 132.4

DCB Bank Ltd.

16 Jul 2019

127.06

0.40%

Weak operating performance; growth outlook uncertain

Neutral: DCB Bank Ltd.

Target

Motilal Oswal

16 July 2019 1QFY20 PAT came in at INR811m (+17% YoY), significantly below our estimate of INR973m due to lower fee income, margin pressure and muted loan growth. NII grew 11.6% YoY (v/s +14.1% YoY in 4QFY19) as margins further compressed by 10bp QoQ to 3.7%. This, coupled with weak fee income (-9% YoY), drove modest 10% YoY growth in total revenue. Opex increased 4.7% QoQ to INR2.3b due to salary hikes to employees. Thus, the C/I ratio rose 380bp QoQ to 57.5% (500bp increase in the core C/I ratio). Loan growth moderated to 13.2%/2.0% YoY/QoQ (v/s +15.9%/3.

DCB Bank Ltd. has an average target of 174.57 from 7 brokers.

DCB Bank Ltd.

22 Apr 2019

127.06

0.40%

DCB Bank

Buy: DCB Bank Ltd.

SPA Research

DCB Bank reported NII of INR 3.0bn (14% y-o-y & 2% q-o-q) led by loan book growth of (16% y-o-y & 3% q-o-q) to INR 236bn. Margin for the quarter remained stable at 3.78% (-38bps y-o-y & -5bps q-o-q). Higher Other Income (17% y-o-y & 5% q-oq) and moderation in opex (4% y-o-y & 0% q-o-q) resulted in 31% y-o-y & 7% q-o-q growth in PPOP to INR 1.85bn. GNPA / NNPA declined marginally to 1.8% / 0.65% (-8bps / -6bps q-o-q) respectively. We continue to believe that RoA expansion for DCB Bank will depend upon opex moderation going ahead....

DCB Bank Ltd. has an average target of 174.57 from 7 brokers.

DCB Bank Ltd.

22 Apr 2019

127.06

0.40%

DCB Bank: Q4FY19 Result Review

Buy: DCB Bank Ltd.

Target

IDBI Capital

DCB Bank's exit quarter Q4FY19 guidance given 3 years back on operational efficiency is largely met. Cost-to-income, ROA and ROE is at 53.7%, 1.1% and 13.7% against its guidance of 55%, 1% and 14% respectively. Earnings for Q4FY19 are 8% ahead of our estimates. Loan growth ex of corporate segment is healthy at 21%. NIMs are steady sequentially at 3.8%. Cost-to-income has eased by 568bps YoY to 53.7%. As a result PAT has grown by 50% YoY. Asset quality continues to be one of the best among peers. We move our valuations to FY21. We retain our BUY rating and increase our TP to Rs250...

DCB Bank Ltd. is trading below its 50 day SMA of 132.4

DCB Bank Ltd.

19 Apr 2019

127.06

0.40%

DCB Bank (4QFY19): Walking the talk. Maintain BUY

Buy: DCB Bank Ltd.

Target

HDFC Securities

Despite macro challenges (Demon and GST), DCBB fulfilled its almost prophetic guidance of 1% RoAA. While loan growth disappointed in 4QFY19 (16%), stable margins, improving op-lev and asset quality impressed. With its core growth engine intact, we believe DCBB has the potential to grow at faster rates. Upgrade earnings by ~12/16% for FY20/21E. A significant improvement in resulting efficiencies (anticipated) drives up our RoAA estimate to ~1.2% by FY21E. 4QFY19 marked the fulfillment of dual commitments by DCBB, viz. (1) Achievement of 1% RoAA in FY19A, (2) A meaningful improvement in operating efficiency (C-I ratio lowest in 20 qtrs). We maintain BUY with a TP of Rs 228 (2x FY21E ABV of Rs 114).

DCB Bank Ltd. has an average target of 174.57 from 7 brokers.

DCB Bank Ltd.

19 Apr 2019

127.06

0.40%

DCB Bank

Buy: DCB Bank Ltd.

Target

ICICI Securities Limited

Improvement in CI ratio to enhance return ratios In a bid to grow aggressively, DCB adopted an aggressive branch expansion drive in Q2FY16. The bank successfully doubled its branch count and further raised it to 333 as of FY19. The banks also invested in various customer facing technology to increase its reach. With bulk of these investments towards increasing scale & scope of reach behind us and moderation in incremental branch expansion, we expect cost-to-income ratio to moderate to 53.6% by FY21E (currently at 56.6%). This reduction in pace of opex is...

DCB Bank Ltd. is trading below its 50 day SMA of 132.4

DCB Bank Ltd.

19 Apr 2019

127.06

0.40%

DCB Bank - 4QFY19 Result Update

Buy: DCB Bank Ltd.

Target

Reliance Securities

Cost and Capital Efficiencies to Aid RoE; Maintain BUY DCB Bank continued to deliver a consistent performance in 4QFY19 with 21% YoY growth in noncorporate advances, sustained decline in C/I ratio and further improvement capital consumption. CI ratio improved by 300bps YoY to 57% in FY19 (55% in 4QFY19), contributing ~30bps to RoA in FY19. Mortgages and AIB continue to be the key drivers for loan growth in 4Q and FY19. Focus on small-ticket granular loans, efforts towards cost rationalisation, and improved capital consumption should aid expansion in RoE going forward. Margin decline in FY19; to Improve Hereon Margins declined by 33bps YoY to 3.8% in FY19 led by higher cost of funds (+25bps YoY) and...