DCB Bank has posted Rs695mn net profit (+6.5% YoY & +8.2% QoQ) in 1QFY19, marginally above our estimates of Rs654mn. Higher NII (+17.1% YoY & +3.5% QoQ) led by continued strong growth in loan book (+30.6% YoY & 4.5% QoQ) and lower provisioning expenses at Rs332mn (-6.4% YoY & -14.4% QoQ) aided bottom-line growth. However, operating profit growth moderated to 3.6% YoY to Rs1.41bn owing to lower treasury income and relatively higher opex. Fresh slippages also sequentially increased to Rs1,074mn vs. Rs814mn in 4QFY18 and Rs887mn in 1QFY18. Headline gross NPA number rose by 8.6% QoQ due to higher quarterly slippages. Notably, its overall stressed loan portfolio remained stable and within the Management's comfort zone....