DCB Bank Q4 Results: NII Increases 4.5%, PAT Increases 9% to Rs 156 Cr; Dividend Announced
The announcement of DCB Bank’s financial results for the quarter and fiscal year that concluded on March 31, 2024, led to a 10.17% increase in the company’s share price on the BSE on Wednesday, closing at Rs 136.45 per share.
The bank’s profit after tax (PAT) for the fourth quarter of FY 2024 was Rs 156 crore. In contrast, profit after tax increased from Rs 142 crore in Q4 FY 2023 by 9%. DCB Bank’s net interest income increased by 4.50% in Q4 FY24 compared to Q4 FY23, rising from Rs 486 Cr to Rs 508 Cr, or 4.4%.
The bank’s profit after tax (PAT) increased from Rs 466 Cr in FY 2023 to Rs 536 Cr in FY 2024, a 15% rise. While the rise in mortgages was 22%, co-lending was 23%, building financing was 26%, and agri-inclusive banking was 30%, the surge in advances was just 19% YoY. The deposit increase was 20% year over year.
The gross negative parity as of March 31, 2024, was 3.23%. Net NPA was at 1.11% as of March 31, 2024. The Provision Coverage Ratio (PCR) was at 77.30% as of March 31, 2024, or 78.18% if Gold Loan Non-Performing Assets were subtracted. As of March 31, 2024, the capital adequacy ratio was still strong, with Tier I at 14.53% and Tier II at 2.06% in compliance with Basel II standards.
“I want to thank all the stakeholders for giving me the opportunity to contribute to the progress of the bank,” said Mr. Murali M. Natrajan, the departing Managing Director and CEO. I’m wishing the management group that will lead this bank—including the incoming Managing Director and CEO—all the best. I have faith that DCB Bank will keep up its current rate of expansion and wealth creation.”
“We continue our steady scale up journey, with growth in chosen products as per strategy, namely, mortgages, agri- & inclusive banking, construction finance, and gold,” said Mr. Praveen Kutty, designated managing director & CEO. Our deposit franchise has grown significantly while keeping its granular profile consistent. Credit expenses are reduced as a consequence of the ongoing strong recoveries and upgrades. Our goal is to keep raising growth and profitability.”
“At today’s meeting, the Bank’s Board of Directors proposed, subject to necessary approvals, a dividend of Rs. 1.25/- (Rupee One and Paise Twenty Five only) for each equity share of the Bank with a face value of Rs. 10/- each. When the dividend on equity shares is authorized by the shareholders at the bank’s next Annual General Meeting (AGM), it will be paid or sent within the allotted period.
Additionally, Friday, May 10, 2024, has been set as the record date by the Board of Directors to ascertain the eligibility of members entitled to dividends on equity shares. After the AGM, the members whose names are on the bank’s Register of Members/Register of Beneficial Owners, which is kept up to date by the depositories, namely National Securities Depository Limited and Central Depository Services (India) Limited, as of Friday, May 10, 2024, at the close of business hours, will receive their dividend, if approved by the bank’s members,” stated DCB Bank in a regulatory filing.
