DCB Bank (DCBBANK) investor relations material

Executive summary

• Q1 FY27 delivered strong performance with record profit after tax of INR 213 crore (up 36% YoY), robust advances (up 17.06% YoY), and deposit growth (up 20.06% YoY), despite macroeconomic and geopolitical challenges.

• Total business surpassed INR 1,34,000 crore, with a focus on liability growth, productivity, portfolio quality, and capital optimization.

• Maintained a healthy capital adequacy ratio of 17.03% and CASA ratio of 21.65%.

• Asset quality improved, with GNPA at 2.43% and NNPA at 0.84%.

• Financials prepared in accordance with Indian GAAP, RBI guidelines, and SEBI regulations; unaudited results reviewed by statutory auditors.

Financial highlights

• Net interest income for Q1 FY27 was INR 684 crore, up 18% YoY; net profit reached INR 213.20 crore, up from INR 157.26 crore in Q1 FY26.

• Core fee income rose 31% YoY to INR 175 crore, offsetting a one-time treasury income drop of INR 85 crore.

• Operating profit for Q1 FY27 was INR 344 crore, up 5% YoY; balance sheet size reached INR 88,752 crore, up 14.67% YoY.

• Cost to average assets hit a historic low of 2.42%, down 10 bps YoY, and cost to income ratio was 60.92%.

• Provision coverage ratio improved to 79.81%; credit cost for Q1 FY27 was 0.26%.

Outlook and guidance

• Guidance for cost to average assets below 2.5%, GNPA below 2.5%, NNPA below 1%, and ROE above 13.5% has been met and is expected to be sustained.

• NIM expected to rise in coming quarters as product mix shifts toward higher-yield mortgages and secured non-gold products; business model NIMs targeted at 350-365 bps.

• Aims to double balance sheet size every 3-4 years, focusing on secured small ticket lending.

• Gold loans to remain 20%-22% of the book; mortgage disbursals expected to accelerate in Q2–Q4.

• Co-lending portfolio to be managed within 12.5%-15% of total advances.