DCB Bank (DCBBANK) Q4 11/12 earnings summary

Executive summary

• FY12 net profit rose to ₹55.08 crore from ₹21.43 crore; operating profit was ₹83.82 crore versus ₹86.06 crore.

• Total assets reached ₹8,676.85 crore at March 31, 2012, up ₹1,263.98 crore YoY; customer deposits grew ₹764.77 crore and advances ₹1,002.73 crore.

• The neighborhood banking strategy targets MSME/SME, retail mortgages and mid-corporates, with growth across lending segments and focus on portfolio quality.

Financial highlights

• Net interest income increased to ₹227.70 crore from ₹189.14 crore; non-interest income was ₹102.73 crore versus ₹112.10 crore.

• Total operating income rose to ₹330.43 crore from ₹301.24 crore; operating costs increased to ₹246.61 crore from ₹215.18 crore.

• Provisions other than tax fell to ₹28.71 crore from ₹56.81 crore; FY12 profit before tax was ₹55.11 crore and tax was ₹0.03 crore.

• EPS was ₹2.73 basic and ₹2.71 diluted, versus ₹1.07 and ₹1.06, respectively, in FY11.

• No dividend was recommended for FY12 under Section 15 of the Banking Regulation Act.

Outlook and guidance

• FY13 plan includes opening the eight remaining licensed branches, with expansion focused particularly on Tier 2–6 locations.

• Strategy prioritizes MSME/SME, retail mortgages and mid-corporates; CASA and retail term deposits to help manage funding costs.

• Advance growth to remain cautious and selective amid high deposit rates, tight liquidity and asset-quality pressures in the industry.