NE BUSINESS BUREAU
MUMBAI, MAY 25
Private sector lender DCB Bank on Saturday reported a 28 percent decline in net profit at ₹69 crore for the March quarter, impacted by the coronavirus crisis.
The bank had posted a net profit of ₹96 crore in the same period of 2018-19.
Income during the January-March quarter of FY20 rose by 8.5 percent to ₹434 crore, as against ₹400 crore in the same period of the preceding fiscal, DCB Bank said in a release.
The bank’s profit after tax in FY20 stood at ₹338 crore, up 4 percent from ₹325 crore in 2018-19.
Income during the year grew 10.5 percent to ₹1,656 crore as against ₹1,499 crore in the preceding fiscal.
“Both FY 2020 and Q4 2020 profit before tax was impacted by ₹63 crore Covid-19 Regulatory Package Provision. The bank conservatively made more provision than required as per guidelines,” it said.
The bank’s asset quality weakened, with gross non-performing assets (NPAs) or bad loans rising to 2.46 percent of gross advances as on March 31, 2020, from 1.84 percent in the corresponding quarter of the previous fiscal.
Likewise, the net NPA ratio rose to 1.16 percent from 0.65 percent.
DCB Bank’s Managing Director and CEO Murali M Natrajan said, “Our main aim in the next two quarters would be to carefully navigate through the difficult and uncertain environment focusing on handling potential portfolio stress, assisting loan customers within regulatory guidelines, effect cost reduction and maintain adequate liquidity.”
He said the bank is of the view that the second moratorium relief announced by the RBI has come at the right time.
