Medium-sized private lender DCB Bank posted a near double rise in net profit at Rs 15.6 crore for the December quarter against Rs 8.2 crore a year ago.
The rise in the net profit was primarily driven by net interest income (NII), which was up 21 percent at Rs 60 crore.
The bank further said that as on December 31, 2011, its deposits grew by 10 per cent at Rs 6,191 crore while advances grew by 9 per cent to Rs 4,306 crore as compared to the same period in 2010.
However, the non-interest or the fee income was flat at Rs 26 crore and its chief executive and managing director Murali Natrajan attributed the sluggishness to declining revenues from securities trading verticals.
The bank's net interest margin (NIM) improved to 3.37 percent for the quarter but Natrajan said it will slid by up to 20 basis points in the last quarter as the mandatory priority sector lending increases.
Its net non-performing assets ratio stood at 1.03 percent as on December 31 and Natrajan said it will be cautious while lending to large corporates in the future. Also, Capital Adequacy Ratio (CAR) was at 13 per cent as on December 31 2011.
The bank will concentrate on the micro, small and medium enterprises segment, which account for 30 percent of the book at present, he said.
It has drawn up plans to open 10 new branches by March 2012 which will take its network size to 92 branches.
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