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HDFC Securities Report
DCB Bank Ltd.'s Q1 FY21 print was in line. The QoQ de-growth in deposits was underwhelming, but DCB Bank's focus on improving deposit granularity was evident and is positive.
The contribution of Top-20 deposits fell from 9.3% as of FY20 to 8.7% as of Q1 FY20, and further to 8.1% as of July 2020. The bank fully repaid outstanding certificates of deposits (Rs 6.1 billion in Q4 FY20).
Its focus on retail term deposits (up 43% YoY) over current account and savings account (down 8.6% YoY) was clearly visible. Borrowings registered a sharp growth of 48/15.4%.
DCB Bank's capital to risk assets ratio rose 16 basis points QoQ to 17.9%, aided by a reduction in risk-weighted assets.
Asset quality was optically stable (benefited by the standstill classification), and the moratorium book dipped significantly.
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