DCB Bank Q1 Results: Private lender shares tank over 6% after slippages, credit costs rise

Shares of DCB Bank fell as much as 6.5% on Thursday, July 31, in response to its June quarter results that were reported during market hours.

DCB Bank's Net Interest Income (NII) or core income for the quarter stood at ₹581 crore, which is a 17% growth from the same quarter last year.

Net profit for the period also increased by 20% year-on-year to ₹157 crore. The increase in bottomline was aided by a jump in other income which increased to ₹236 crore from ₹143 crore last year.

Asset quality for the quarter remained largely steady. Gross NPA for the quarter stood at 2.98% from 2.99% in March, while Net NPA saw a marginal increase during the quarter to 1.22% from 1.12% in March.

Provisions for the quarter saw a sharp increase both sequentially as well as from the same quarter last year. Provisions stood at ₹115.1 crore from ₹67.2 crore in March and ₹28.39 crore last year.

Return on Assets (RoA) on an annualised basis stood at 0.81% from 0.82% last year and 0.95% in Mach.

Shares of DCB Bank fell 6.5% to trade at ₹132.69 after the results announcement. The stock is down 9% in the last one month but remains 10% higher this year, despite the drop.