DCB turns around, reports Rs 8 cr profit in Q3

Mumbai, Jan 18 (PTI) Development Credit Bank (DCB) todayreported Rs 8 crore profit for the third quarter as against anet loss of Rs 18 crore in the year-ago period, on the back ofa surge in net margin and lower provisioning.

Net profit for nine months ending December stood at Rs 10crore compared to a loss of Rs 70.3 for in year-ago period.

Provisions came down substantially in the reportingquarter and stood at Rs 13 crore as against Rs 26 crore in Q3last fiscal. Net advances grew to Rs 3,956 crore up from Rs3,138 crore.

The bank had a net interest margin of 3.13 per cent asagainst 2.61 per cent in the same period last fiscal.

Deposits grew by 26 per cent to Rs 5,651 crore, whileadvances grew by a similar speed to Rs 3,956 crore. Capitaladequacy of the lender stood at 13.39 per cent.

Chairman Nasser Munjee said, "we are back on track. Wewill continue to operate cautiously and keep building on theprogress we have achieved so far."

Managing director and chief executive Murali M Natrajan,said, "our plan is to keep improving our performance everyquarter and strengthen the balance sheet in the coming months.

This can enable us step up growth while focusing on securedlending and low-cost deposits."

As on December 31, the balance sheet stood at Rs 6,989crore as against Rs 5,701 crore.

DCB has 80 branches across 10 states and 2 UnionTerritories. Its business segments include retail, micro-SMEs,large SMEs, mid-corporates, microfinance institutions,agriculture, commodities.