|Mumbai based private sector bank, Development Credit Bank has announced its results for the April-June quarter. The bank has reported a 111% increase in its net profit, which stood at Rs. 19 crore against Rs. 9 crore last year.
The incresed profits came as a result of improved asset quality, and resultant reduction in provisions. The bank's net nonperforming assets (NPA) as a ratio of total advances at the end of Q1 was 0.75% compared with 1.19% year ago. Provisioning for bad loans reduced from 8 crore to 6 crore on yearly basis.
Bank's income from core operations, the net interest income for the period was Rs. 64 crore, 23% higher than previous year's Rs. 52 crore. The bank registered a 29% growth in credit, which stood at Rs. 5,449 crore; while deposits grew by 14% to Rs. 6,829 crore.
"We have made a good start to FY2013. We aim to build further momentum in the coming months. However, we will remain cautious given the current external environment," stated Mr. Murali M. Natarajan, MD and CEO, DCB.
The bank is owned privately , with majority stakes resting with Agha Khan Fund for Economic Development and minority stakes with South Indian Bank and Tata Capital Financial Services. The bank has a network of 86 branches across the country.