Banking stocks profit surge 20% in Q1, NII rises 17% as asset quality remains stable

Banking Stock Surges 20% Profit Growth in Q1, NII Rockets 17% as Asset Quality Holds Steady

In its recently announced first quarter results, DCB Bank has reported a significant improvement in its financial performance, highlighting strong profit growth and stable asset quality.

DCB Bank’s net profit rose 20% to ₹157 crore as against ₹131 crore in the same quarter last year. Net interest income (NII) grew 17% to ₹581 crore from ₹496 crore in the same period. The bank’s gross non-performing assets (NPAs) remained almost stable at 2.98%, slightly lower than 2.99% quarter-on-quarter. Meanwhile, net NPAs rose marginally to 1.22% as against 1.12% in the previous quarter, indicating a contained impact on asset quality.

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Key Fundamentals

The market valuation of DCB Bank is ₹4180 crore and the current share price is ₹133. The highest and lowest price of the year for this stock has been ₹151 and ₹101 respectively. Valuation parameters include a price-to-earnings (PE) ratio of 6.80. The bank’s operating efficiency and profitability indicators show a return on capital employed (ROCE) of 7.67% and a return on equity (ROE) of 11.4%. The promoter’s stake is reported to be 14.7%, indicating significant internal confidence.

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