DCB Bank Ltd. share price target

DCB Bank has topped the market expectations in 3QFY17 led by robust growth in NII and other income along with 385bps qoq growth in CASA ratio. It has reported substantially improved performance on operating front with its NII rising by 30.5% yoy & 10.1% qoq to Rs2.09bn led by robust growth in loan book (24.3% yoy & 1.0% qoq) and stable growth in NIMs (3.95%). Despite higher provisioning of Rs305mn (+45.7% yoy & +15.3% qoq), its PAT grew by 24.5% yoy & 5.8% qoq to Rs513mn. The Bank showed greater resilience on asset quality front with its gross and net NPA remaining within the Management's comfort zone. We expect the Bank will be one of the major...

Background:DCB Bank Limited (formerly Development Credit Bank Limited) is the smallest listed private sector lender. DCB has a deposit base of INR 177bn and advances of INR144bn at the end 2QFY17, 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 ~16.23% stake. DCB services entails Corporate Banking - 16%, SME -11%, Agriculture 17%, Mortgages 43%. As on 2QFY17, the bank has a...

ICICI Securities Ltd | Retail Equity Research Post a disappointing Q1FY17performance, asset quality was better with sequential net addition in GNPA at | 24.1 crore, compared to | 33.9 crore in Q1FY17. Consequently, GNPA increased to | 255.4 crore (| 231.3 crore in Q1FY17) while GNPA ratio increased marginally by 3 bps QoQ at 1.75%, due to an increase in asset base DCB bank reported a bottomline of | 48.5 crore (| 36.9 crore in Q2FY17), marginally lower than our estimate of | 51.2 crore, led by...

DCB Bank’s (DCBB) net earnings (Rs 470mn, flat YoY) were in line, driven by sequentially stable NIM (4.05%, +24bps YoY), healthy loan growth (+28%) and SA accretion (+21%). Earnings did meet estimates, but mortgage and agri NPAs were a minor letdown. Aggressive expansion (45 new branches, 69 ATMs over the past three quarters) drove up opex (C-I +300bps QoQ). We believe DCBB’s aggressive expansion and the expected NIM decline will continue to hit near-term earnings. HDFC Securities Maintain BUY. Revise TP to Rs 115 (1.6x Mar-18E ABV of Rs 71).

Trendlyne has 9 reports on DCBBANK updated in the last year from 5 brokers with an average target of Rs 104.4. Brokers have a rating for DCBBANK with 1 price downgrade,1 price upgrade in past 6 months and 1 downgrades,2 price downgrades and 1 upgrades in past 1 Year.

ICICI Securities Ltd | Retail Equity Research Asset quality remained disappointing with sequential net addition in GNPA coming in at | 33.9 crore, highest till now. GNPA increased at | 231.3 crore (| 197.4 crore in Q4FY16) while GNPA ratio increased 21 bps QoQ at 1.72%. With a fall in restructured assets, fresh slippages continued at their run rate of | 59 crore while recoveries, write-offs declined at | 19.3 crore, | 0.4 crore, respectively DCB reported flattish bottomline growth at | 47 crore (| 46.9 crore in...

Background:DCB Bank Limited (formerly Development Credit Bank Limited) is the smallest listed private sector lender. DCB has a deposit base of INR 157bn and advances of INR133bn at the end 1QFY17, 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 ~16.24% stake. DCB services entails Corporate Banking - 15%, SME -11%, Agriculture 17%, Mortgages 44%. As on 1QFY17, the bank has a...

ff Loan book excluding corporate banking grew by 36% yoy and 3% qoq primarily supported by strong growth in mortgage, commercial vehicles and CV segments ff The bank opened 7 branches in 1QFY17 and planning to open another 30 branches in reaming part of FY17. Management reiterates to double its branch network in next 24 months and may recalibrate its strategy based on their experience and external developments....

In 1930 Ismailia Co-operative Bank Limited and the Masalawala Cooperative Bank merged together to form Development Co-operative Bank, later changed to Development Credit Bank. Reserve Bank of India granted it scheduled bank license in May 1995. Development Credit Bank Ltd. Launched its IPO in 2006. Bank got its new name DCB in January 2014 after regulatory approval. DCB Bank has a highest number of branches in Maharastra with 43 branches in which 28 branches are in Mumbai & suburbs. DCB Bank has 25 branches in Gujarat, 20 Branches in Odisha, 13 in...

Background:DCB Bank Limited (formerly Development Credit Bank Limited) is the smallest listed private sector lender. DCBhas a deposit base of INR 149bn and advances of INR129bn at the end 4QFY16, 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 ~16.24% stake. DCB services entails Corporate Banking - 15%, SME -12%, Agriculture 17%, Mortgages 43%. As on 4QFY16, the bank has a...

DCB Banks (DCBB) 4QFY16 results surprised yet again. Improved NIM (4.1%, 10bps QoQ), controlled opex and higher traction in recoveries and fees ( 9% QoQ) led to ~17% PPOP beat and 160bps QoQ C-I improvement. With almost nil tax provisions, PAT at Rs 695mn was ~74% higher than estimate, despite non-tax provisions being pushed up by 30% QoQ.