DCB Bank Reports Strong Growth in Q2 FY25
In terms of growth metrics, DCB Bank reported a year-on-year increase in advances of 19 per cent, while deposits grew by an impressive 20 per cen
DCB Bank has released its financial results for the second quarter of FY25, showcasing a robust performance with a significant increase in Profit After Tax (PAT).
Profit After Tax Increases
The bank's PAT for Q2 FY25 stood at INR 155 crore, marking a 23 per cent growth from INR 127 crore in Q2 FY24. This positive trend reflects the bank's effective strategies and operational efficiency.
Growth in Advances and Deposits
In terms of growth metrics, DCB Bank reported a year-on-year increase in advances of 19 per cent, while deposits grew by an impressive 20 per cent. These figures indicate the bank's strong positioning in the market and its ability to attract new customers, contributing to overall financial health.
Improvement in Asset Quality
The bank's asset quality also demonstrates improvement, with the Gross Non-Performing Assets (NPA) ratio at 3.29 per cent and a Net NPA ratio of 1.17 per cent as of September 30, 2024. The Provision Coverage Ratio (PCR) stood at 75.62 per cent, and when excluding Gold Loans NPAs, the PCR improved to 76.41 per cent. This enhancement in asset quality is a testament to DCB Bank's effective risk management strategies and prudent lending practices.
Strong Capital Adequacy
Moreover, DCB Bank's Capital Adequacy Ratio remains robust, reaching 15.55 per cent as of September 30, 2024. This includes a Tier I capital ratio of 13.65 per cent and Tier II capital ratio of 1.90 per cent, in accordance with Basel III norms. The strong capital adequacy underscores the bank's stability and its capability to support future growth initiatives.
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