DCB Bank Q1 FY27 Results (NSE: DCBBANK)
Signal: Earnings grew
The read
PAT grew 36% YoY to a record ₹213 Cr, driven by lower provisions (down 50%) and 17% NII growth, despite a 17% decline in non-interest income and higher cost-to-income. Asset quality improved with GNPA at 2.43% (lowest in 5 quarters) and PCR at 79.81%. However, core operating profit growth was only 5% as expenses rose faster than income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹880 Cr | 7.7% | 1.5% |
| EBIT | ₹344 Cr | 5.2% | |
| Net profit | ₹213 Cr | 35.7% | |
| EBIT margin | 39.09% |
P&L walk
PAT growth driven by sharp decline in provisions, not operating leverage; NII strong but non-interest income fell and cost-to-income rose.
Key positives
- PAT up 36% YoY, highest ever quarterly PAT for the fourth consecutive quarter.
- Advances grew 17% YoY, deposits 20% YoY, showing strong business momentum.
- Gross NPA improved to 2.43% (lowest in 5 quarters), Net NPA to 0.84%.
- Provision Coverage Ratio improved to 79.81% from 74.04% YoY.
- Capital Adequacy ratio strong at 17.03% (Tier I 14.90%).
Key concerns
- Non-interest income declined 17% YoY (₹196 Cr vs ₹236 Cr), pressuring total income growth.
- Cost to income ratio increased to 60.91% from 59.98% YoY as operating expenses grew faster than total income.
- CASA ratio declined to 21.65% from 23.32% YoY, indicating higher cost of deposits.
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