NSE: DCBBANK | BSE: 532772 | ISIN: INE503A01015

INDUSTRY : Banks

DCB Bank Ltd.

Mid-range Performer

87.05 -0.35 (-0.40%)

64.32% Fall from 52W High

Volume: 2.7M

NSEJul 08, 2020 12:39

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Durability score
40/100
Medium Financial Strength
Valuation score
38.8/100
Mid Valuation
Momentum score
41.2/100
Technically Neutral
8S
11W
5O
4T


DCB Bank Ltd.    
11 Jun 2020
87.05
-0.40%
buy
by SPA Research
Target: 231 | Upside : 165.4%
SPA Research
DCB reported advance degrowth of 0.37% for Q4FY20 on a QOQ basis while deposits registered a QOQ growth of 2.14%, even though Q4 usually has historically been the strongest quarter for the bank. NIMS for the quarter stood at 3.64% against 3.71% in Q3FY20. GNPA's stood at 2.46% against 2.20% in Q3FY20 while NNPA stood at 1.16% against 1.03% in Q3FY20. The provision coverage ratio was at 70.81% against 76.99% in Q3FY20. Advances growth to pick up pace from Q3FY21 as COVID induced pain eases and the economy returns to normalcy. GNPA's increase - upgrades delayed On a QOQ basis GNPA'S registered an increase of INR 795 mn as upgrades were affected by the lockdown. Within GNPA's the highest...
default
DCB Bank Ltd. has lost -62.32% in the last 1 Year
DCB Bank Ltd.    
11 Jun 2020
87.05
-0.40%
buy
by BOB Capital Markets Ltd.
Target: 65 | Upside : 25.3%
BOB Capital Markets Ltd.
DCB Bank's (DCBB) board today passed a resolution to raise equity capital of up to Rs 5bn.
DCB Bank Ltd. has gained 24.54% in the last 1 Month
DCB Bank Ltd.    
29 May 2020
87.05
-0.40%
buy
Accumulate: DCB Bank Ltd.
by Nirmal Bang
Target: 89 | Upside : 2.2%
Nirmal Bang
Loan growth slows to single digits; Asset quality remains under pressure DCB reported a lackluster quarter with increased stress on asset quality, tepid loan growth and elevated provisions due to Covid-19. The only solace was the continued control over opex. oAdvances growth stood at 8% YoY (a multi-year low) & remained flat QoQ with advances at Rs. 25,345 Cr. Loan growth trended down owing to a slowdown in all segments viz. Mortgage, SME, CV, Agri and Corporate. Loan book ex-corporate grew by ~10% YoY. We expect advances to grow at 10% CAGR during FY20-22E. oNIMs declined QoQ by 7 bps to 3.64%. (YoY NIM was at 3.78%). NII grew by 8% YoY. LCR has been in excess of 130% which has impacted NIMs by 4-5 bps. NIMs are expected to be negatively impacted in FY21E as the bank will look to maintain excess liquidity and also due to higher slippages. oOther income increased by 11% YoY. Fee income grew by a mere 2% while treasury income and forex transactions led to the overall increase in other income. oOpex grew 3% YoY and cost/income declined 330 bps QoQ and 260 bps YoY to 51.1%. DCB is confident of maintaining its opex levels low in the current year. oTotal Income grew by 8%. oProvisions stood at Rs. 118 Cr vs QoQ Rs. 59 Cr and YoY Rs. 35 Cr. Out of this, Rs. 63 Cr (0.95% of AUM) provisions were towards Covid (including Rs. 9 Cr as 10% provisions on overdue accounts as on 1st March as prescribed...
DCB Bank Ltd. has lost -62.32% in the last 1 Year
DCB Bank Ltd.    
26 May 2020
87.05
-0.40%
buy
Accumulate: DCB Bank Ltd.
by Nirmal Bang Institutional
Target: 65 | Target met
Nirmal Bang Institutional
Expect de-growth in 1HFY21, NPA challenges inevitable DCB Bank (DBL) reported NII 2% below our estimate. Operating profit growth was relatively better at 14.5% YoY/11.7% QoQ on the back of a flexible cost structure (as indicated by the management). Total opex grew by 3.1% YoY and declined by 2.1% QoQ. Provisions for the quarter stood at Rs1,182mn, up 2.4x YoY/1x QoQ as the bank provided a sum of Rs630mn related to covid-19. Going forward, we expect credit cost to increase on account of NPA build up. PAT came in 32% lower than our estimate mainly on account of higher-than-expected provisioning. Advances growth at 7.5% YoY was weak as Rs4-5bn worth of loans could not be...
DCB Bank Ltd. has gained 24.54% in the last 1 Month
DCB Bank Ltd.    
26 May 2020
87.05
-0.40%
buy
by ICICI Securities Limited
Target: 59 | Target met
ICICI Securities Limited
DCB Bank reported an operationally steady quarter but with higher provision at | 63 crore related to Covid impacted earnings. Provision surged 240% YoY to | 118 crore, including Covid related provisioning of | 63 crore vs. RBI requirement of | 9 crore. The bank has maintained additional floating...
DCB Bank Ltd. is trading above it's 50 day SMA of 72.8
DCB Bank Ltd.    
24 May 2020
87.05
-0.40%

DCB Bank (4QFY20): Attractive amidst visible headwinds. Maintain ADD

buy
Accumulate: DCB Bank Ltd.
by HDFC Securities
Target: 100 | Upside : 14.9%
HDFC Securities
We maintain ADD with a TP of Rs 100 (0.9xFY22E ABV). DCBBs 4QFY20 performance was underwhelming on a/c of the rise in GNPLs despite the standstill classification (albeit partial) benefit. Profit was below estimates, impacted by higher provisions. Weve lowered our estimates to factor for higher provisions, slower growth and NIM compression. We like DCBBs conservative lending approach but extrinsic factors will pose significant near term challenges given its significant MSME exposure.
DCB Bank Ltd. is trading below it's 100 day SMA of 100.1
DCB Bank Ltd.    
23 May 2020
87.05
-0.40%
buy
Accumulate: DCB Bank Ltd.
by BOB Capital Markets Ltd.
Target: 65 | Target met
BOB Capital Markets Ltd.
DCB Bank's (DCBB) Q4FY20 PAT at Rs 0.7bn declined 29% YoY on slower NII growth (8%) and a spike in provisions.
DCB Bank Ltd. has lost -53.15% in the last 6 Months
DCB Bank Ltd.    
30 Jan 2020
87.05
-0.40%
buy
by Nirmal Bang
Target: 219 | Upside : 151.6%
Nirmal Bang
Valuation and Outlook DCB has surpassed its inflection point in terms of a gradual and continuous reduction in its cost to income ratio as the benefit of over 2x increase in branches post FY15 becomes visible. Although the economic slowdown and run-down of corporate book shall impact the bank during FY20, we remain positive from FY21 perspective, given DCB's strong presence in the SME and Retail space with no baggage of any legacy asset quality issues. As compared to its peer City Union Bank (CUB), DCB trades at a discount of 40% due to its lower historical ROA of 0.9-1.0% as against 1.6% for CUB. We believe this discount should shrink to 25% as DCB's ROA expands to ~1.2% by FY21E majorly backed by a decline in opex/assets. We maintain BUY on the stock with a target price of Rs. 219 (at 1.8x of FY21E Adj. BV).
DCB Bank Ltd. has gained 24.54% in the last 1 Month
DCB Bank Ltd.    
27 Jan 2020
87.05
-0.40%
buy
by HDFC Securities
Target: 249 | Upside : 186.0%
HDFC Securities
Our estimates remain largely unchanged, even after DCBB's soft performance over 3QFY20. We model a considerable improvement in credit growth and operating efficiency beyond FY20E. These reflect our confidence in the bank's calibrated approach to growth. We expect oplev to be the biggest driver of return ratio improvement. DCBB stands to gain from an uptick in economic activity and a sustained downturn will pose a significant risk to our estimates. DCBB reported an in-line qtr and overall performance was lackluster (asset quality deterioration and slowing growth). Better cost control and a slight margin uptick were positives. MAINTAIN BUY with a TP of Rs 249.
DCB Bank Ltd. is trading below it's 100 day SMA of 100.1
DCB Bank Ltd.    
27 Jan 2020
87.05
-0.40%
buy
by Chola Wealth Direct
Chola Wealth Direct
Background: DCB Bank Limited (formerly Development Credit Bank Limited) has a deposit base of INR 297bn and advances of INR 254bn at the end of 3QFY20, making it the smallest bank in the listed private sector space, including both new and old generation private sector banks. Promoter group the Aga Khan Fund for Economic Development (AKFED) & Platinum Jubilee Investments holds ~15% stake. DCB services entail Corporate Banking - 12%, SME -11%, Agriculture 21%,...
DCB Bank Ltd. has lost -53.15% in the last 6 Months