Q3 2026 DCB Bank Ltd Earnings Call Transcript
Key Points
- Customer advances grew by 18.46% year-over-year, indicating strong lending growth.
- Customer deposits increased by 19.54% year-over-year, reflecting robust deposit mobilization.
- Profit after tax rose by 22% year-over-year, showcasing strong profitability despite a one-time impact.
- Net Interest Margin (NIM) improved to 3.27% due to reduced cost of deposits.
- The bank achieved its highest ever quarterly profit of INR184.74 crores with an ROA of 0.91% and an ROE of 12.73%.
- A one-time impact of INR26.87 crores was incurred due to the new labor code, affecting costs.
- The cost-to-income ratio remains relatively high at 61.84%, despite improvements.
- The slippage ratio, although at its lowest in 18 quarters, still stands at 3.08%.
- The gross NPA is at 2.72%, which, while improved, still indicates room for further reduction.
- The bank's reliance on bulk deposits has increased, which may pose risks if not managed carefully.
Ladies and gentlemen, good day, and welcome to the DCB Bank Q3 FY26 earnings conference call. (Operator Instructions) From management, we have with us today, Mr. Praveen Kutty, Managing Director and CEO; Mr. Sridhar Seshadri, Whole Time Director; Mr. Ravi Kumar, Chief Financial Officer; Mr. Ajit Kumar Singh, Chief Investor Relations Officer.
I now hand the conference over to Mr. Praveen Kutty, MD and CEO, DCB Bank. Thank you, and over to you, Mr. Kutty.
Thank you. Good evening, ladies and gentlemen. Welcome to DC Bank's quarter three earnings call. At the outset, I would like to run you through the headline numbers. The customer advances have grown YoY by 18.46%. Customer deposits have grown YoY by 19.54%. And profit after tax has grown YoY by 22%. Despite a onetime impact of INR26.87 crores, we'll come to that in a minute.
Consistency, predictability and repeatability I keep saying this every meeting, every interaction with all of you and as well as
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