DCB Bank (DCBBANK) Q4 25/26 earnings summary

Executive summary

• Achieved record profit after tax of INR 732 crore for FY26 and INR 206 crore for Q4, marking the highest in the bank's history and the third consecutive quarter of record profits.

• Advances grew 18% year-over-year and deposits grew 21% year-over-year, with total business surpassing INR 1,32,000 crores.

• Maintained a healthy capital adequacy ratio at 16.55% and improved asset quality with Gross NPA at 2.45% and Net NPA at 0.89%.

• Dividend of ₹1.45 per equity share recommended, up from ₹1.35 last year, subject to shareholder approval.

• Continued investments in branch infrastructure, digital initiatives, and customer experience enhancements.

Financial highlights

• Net Interest Income for FY26 grew 17% YoY to INR 2,457 crores; Other Income rose 14% YoY to INR 855 crores.

• Operating profit increased 25% YoY to INR 1,296 crores, the highest in eight years; provisions and contingencies rose 53% YoY to INR 319 crores.

• Net profit for FY26 was ₹731.56 crore, up from ₹615.33 crore year-over-year.

• Net interest margin (NIM) for Q4 was 3.39%, up 12 bps sequentially and 10 bps year-over-year.

• CASA Ratio at 22.38% (down from 24.52% YoY); Provision Coverage Ratio improved to 78.42%.

Outlook and guidance

• Growth guidance of 18-20% annually remains intact, with a focus on maintaining asset quality and prudent expansion.

• Deposit repricing benefits expected to continue until late Q2 or early Q3 of the next fiscal year.

• Board approved enabling resolutions for future fund raising, including Tier II bonds and equity instruments, to support growth.

• Target GNPA below 2.5%, NNPA at 1%, and cost-to-income ratio at or below 60%.

• Business model NIMs expected in the 350-365 bps range.