Shares of DCB Bank touched a six-year high on Tuesday, reacting positively to the lender's strong third-quarter performance and improvement in key operating metrics.
The private sector lender on January 23 reported a net profit of Rs 184 crore for the December quarter, marking a 21.8% year-on-year increase from Rs 151 crore in the same period last year. Net interest income (NII) rose 14.9% year-on-year to Rs 624 crore, compared with Rs 543 crore a year earlier.
The bank's asset quality improved sequentially, with gross non-performing assets (GNPA) declining to 2.72% from 2.91% in the previous quarter, while net NPA eased to 1.10% from 1.21%. The provision coverage ratio (PCR) stood at 75.35% as of December 31, 2025, while PCR excluding gold loan NPAs was higher at 76.06%.
DCB Bank reported robust balance sheet growth, with advances rising 18% year-on-year and deposits increasing 20%, reflecting sustained business momentum. The bank's capital position remained healthy, with a capital adequacy ratio of 15.84%, including Tier I capital of 13.45% and Tier II of 2.39%, in compliance with Basel III norms.
Commenting on the performance, Managing Director and CEO Praveen Kutty said growth momentum in both advances and deposits continues to remain strong. He added that net interest margins maintained their upward trajectory during the quarter, in line with guidance provided earlier.
Kutty also said fee income momentum remains strong, while credit costs stayed benign, supported by lower slippages and GNPA and NNPA levels at three-year lows. The bank, he noted, delivered its highest-ever quarterly profit after tax, despite taking a one-time impact of Rs 26.87 crore related to the implementation of the New Labour Codes.
DCB Bank Share Price Today
The scrip rose as much as 7.09% to Rs 198 apiece. It pared gains to trade 4.65% higher at Rs 193.49 apiece, as of 10:29 a.m. This compares to a 0.28% advance in the NSE Nifty 50 Index.
It has risen 63.88% in the last 12 months. Total traded volume so far in the day stood at 3.5 times its 30-day average. The relative strength index was at 57.94.
All 22 analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 12.8%.
Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.