DCB Bank reports 19% growth in Q4 operating profit to Rs898cr; Stock soars 3%
The Board of Directors of DCB Bank Ltd on 8th May, 2021, has announced the audited financial results of the Fourth Quarter (Q4 FY 2021) and the Year ended March 31, 2021 (FY2021).
Financial Highlights:
- The Bank’s Profit After Tax was at Rs336cr in FY 2021 as against Rs338cr in FY 2020.
- The Operating Profit for FY 2021 was Rs898cr as against Rs753cr for the same period to last year, an increase of 19%.
- The Bank earned Net Interest Income of Rs1,287cr as against Rs1,265cr for the same period last year, an increase of 2%.
- In Q4 FY 2021, the Bank derecognised Interest of Rs37cr on account of NPA recognition post Honorable Supreme Court Order dated March 23, 2021. The Bank has created a liability of Rs10cr towards interest on interest payable to eligible customers as per Honorable Supreme Court Order and reduced the same from the Interest Income.
- Non-Interest Income of Rs458cr as against Rs 391cr for the same period as last year, an increase of 17%. The Bank benefited from one-time treasury gain in FY 2021 on account of Interest Rate movements.
- Non-Interest Income of Rs458cr as against Rs391cr for the same period as last year, an increase of 17%. The Bank benefited from one-time treasury gain in FY 2021 on account of Interest Rate movements.
- Cost Income Ratio for FY 2021 was at 48.51 % as compared to 54.53% in FY 2020. The improvement in mainly on account of 6% reduction in total cost as compared to FY 2020 and one-time Treasury Gain in Non-Interest Income
Murali M Natrajan, Managing Director and CEO said, “The sudden increase in Covid-19 infections on account of second wave has once again necessitated curfews, restrictions and lockdowns. As for now, it appears that much of Q1 FY22 may be consumed by dealing with second wave and normally may return only by end of June 2021. The current situation is having some impact on Collections Efficiency and new business.”
DCB Bank was trading at Rs93.55 per piece up by Rs2.8 or 3.09% on Sensex, at around 10:15 PM.