DCB Bank (DCBBANK) Q4 98/99 earnings summary

Executive summary

• FY1998-99 net profit was Rs.21.33 crore after provisions and tax, down from Rs.30.02 crore; lower interest margins and sharply reduced securities-trading gains weighed on earnings.

• Deposits rose 31.12% to Rs.1,883.39 crore and net bank credit increased 33.89% to Rs.1,021.33 crore.

Financial highlights

• Gross income was Rs.252.997 crore vs Rs.209.004 crore; operating profit before provisions and tax was Rs.29.955 crore vs Rs.50.712 crore.

• Interest earned reached Rs.221.12 crore vs Rs.150.67 crore; other income fell to Rs.31.88 crore from Rs.58.34 crore.

• Securities-trading profit was Rs.2.63 crore vs Rs.37.19 crore in FY1997-98, amid limited trading opportunities.

• EPS was Rs.12.85 per Rs.10 share; deposits were Rs.1,883.39 crore and advances Rs.1,021.33 crore at March 31, 1999.

Outlook and guidance

• FY1999-2000 priorities include lowering deposit/funding costs and operating expenses to support profitability.

• Target set to reduce net NPAs to below 3% of net bank credit, from 4.79% at March 31, 1999.

• Power Banker Phase I customer-interface modules were expected to go live at one Mumbai branch by October 1999, followed by rollout across branches.

• Plans called for more rural and semi-urban branches over two years to meet the 25% branch-licence mandate; three additional branch approvals were in hand.