DCB Bank (DCBBANK) Q3 24/25 earnings summary

Executive summary

• Achieved balance sheet size of INR 71,567 crores as of Dec 2024, up 19.67% year-over-year, with advances up 22.67% to INR 47,780 crores and deposits up 20.28% to INR 56,678 crores.

• Profit after tax for Q3FY25 was INR 151.44 crores, up 20% year-over-year, with unaudited results approved by the Board.

• Maintained strong capital adequacy at 16.29% and provision coverage ratio at 74.76%.

• Core fee income reached an all-time high of INR 141 crore, reflecting strong momentum.

• Continued expansion with 457 branches and digital initiatives driving customer engagement.

Financial highlights

• Net interest income for Q3FY25 rose 15% year-over-year to INR 543 crores, with total income at ₹1,855.10 crore and operating profit at ₹271.11 crore.

• Other income increased 49% year-over-year to INR 184 crores.

• Cost-to-income ratio improved to 62.4%-62.7%, with a target for further reduction.

• Return on assets at 0.86%-0.87% and return on equity at 11.98% for Q3FY25.

• Credit cost at 0.38%, below steady-state guidance of 0.45%-0.5%.

Outlook and guidance

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

• Targeting NIM of 3.3%-3.65% and ROA of 1%, with ongoing efforts to align NII growth with top-line growth.

• Cost-to-average-assets targeted to move below 2.55%.

• Monitoring industry headwinds, especially in unsecured and MFI lending.

• Business model credit costs expected at 45-55 bps.