DCB Bank Ltd. share price target

Background: DCB Bank Limited (formerly Development Credit Bank Limited) has a deposit base of 317bn and advances of 268bn at the end of 2QFY22, 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 - 11%, SME -10%, Agriculture 22%, Mortgages...

We initiate coverage with a BUY rating and a target price of Rs 115/share (0.8x FY24E ABV)

Background: DCB Bank Limited (formerly Development Credit Bank Limited) has a deposit base of 306bn and advances of 254bn at the end of 1QFY22, 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 - 11%, SME -11%, Agriculture 22%, Mortgages...

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DCB Bank (DCBB) reported a weak operating performance, affected by higher slippage, sluggish NII growth, and elevated provisions. NIMs declined 15bp QoQ to 3.31%, impacted by high interest reversals and excess...

Auto: Gearing up for EV battery technology. DCBB: Recoveries to improve gradually upgrade to ADD. Weekly Eco Wrap: Local restrictions impact economic activity

Background: DCB Bank Limited (formerly Development Credit Bank Limited) has a deposit base of 297bn and advances of 259bn at the end of 4QFY21, 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 - 11%, SME -11%, Agriculture 22%, Mortgages...

DCB Bank posted moderation in operating performance due to interest reversals on NPA recognition, deterioration in asset quality on proforma basis and tepid business growth. Asset quality, on a proforma basis, deteriorated as GNPA ratio was up from 3.7% (proforma) to 4.09% QoQ while net NPA increased to 2.29% from 1.92% (proforma) QoQ. Restructured book, including those under implementation, were at ~| 1100 crore (4.2% of loans), below the management's earlier guidance of 5%. Recoveries were impacted during the...

DCB Bank's (DCBB) Q4FY21 PAT of Rs 0.8bn (+13% YoY) beat our estimate on below-expected provisions.

DCB bank's 3QFY20 earnings demonstrated sequentially lower provisioning expenses (1.0bn v/s 1.47n in 3QFY21) and net profit of 779mn; down by 19% sequentially. The headline PCR decreased sequentially to 6.4% as fresh slippages remained high. Pursuant to the Supreme...