Shares of DCB Bank surged 10% to Rs 121 on October 25 after the lender announced impressive results for Q2 FY25. The bank’s net profit rose 22.6% year-on-year to Rs 155.5 crore, supported by a 7% increase in net interest income (NII) to Rs 509.2 crore. Improvements in asset quality also contributed to investor confidence, with net non-performing assets (NPAs) slightly decreasing to 1.17% from 1.18% in the previous quarter, while the gross NPA ratio fell to 3.29% from 3.33%.
Praveen Kutty, Managing Director and CEO, emphasized that the growth momentum remains robust across both deposits and loan advances, driven by greater use of analytics and customer engagement strategies. He added that the bank’s focus on recoveries and upgrades has shown positive results, boosting fee income and setting the stage for steady profitability improvement going forward.
Brokerage firm Kotak Institutional Equities has reiterated its buy rating on DCB Bank with a target price of Rs 160 per share. According to the brokerage in the report, operating metrics showed no new nasty surprises while cost pressures seemed to have stabilized and yields had recorded a slight decline without significant competitive threats.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
