DCB Bank Ltd., incorporated in the year 1995, is a banking company (having a market cap of Rs 2901.96 Crore).
Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 971.16 Crore, down -5.15 % from last quarter Total Income of Rs 1023.86 Crore and down -4.02 % from last year same quarter Total Income of Rs 1011.79 Crore. The bank reported net profit after tax of Rs 77.91 Crore in latest quarter.
Investment Rationale
DCB Bank reported a weak operating performance, impacted by higher interest reversals, while business growth continues to remain under pressure. The management guided for muted trends due to a surge in COVID-19 cases and lockdowns in key states, with the near term focus on preservation of the Balance Sheet and controlling risk. On the asset quality front, collection efficiency, which improved in Mar’21, was impacted again in Apr’21, while the restructuring book remains high at 4.3%. The brokerage remains watchful on asset quality as the same deteriorated further and expect credit cost trends to remain elevated at 1.9%/1.5% in FY22E/FY23E.
Promoter/FII Holdings
Promoters held 14.9 per cent stake in the company as of March 31, 2021, while FIIs held 13 per cent, DIIs 40.5 per cent and public and others 31.5 per cent.
