DCB Bank conducted a conference call on 24 April 2024 to discuss its financial results for the quarter ended March 2024. Murali Natrajan, MD&CEO of the bank addressed the call:

Highlights:

The bank has recorded healthy 19% growth in advances and strong 20% jump in the deposits end March 2024.

The bank expects segments such as mortgages, SME, gold loans, co lending, agri inclusive banking and construction segments drive the credit growth.

The share of top 20 depositors has declined to 6.57% of total deposits, despite tight liquidity conditions.

The bank has improved NIMs by 14 bps qoq to 3.6% in Q4FY2024. The bank expects favourable change in deposits as well as loan book mix to support margins ahead.

The bank has witnessed decline in the income of PSLCs to Rs 4.5 crore in FY2024 from Rs 25 crore in FY2023.

The saving deposit growth has been supported by effective fintech tie-ups. The bank is digitally acquiring new customers in partnership with Niyo.

The processing fee income growth has been boosted by surge in the fresh disbursements. The fee income growth is expected to be in line with the balance sheet growth.

The bank is mainly retail focused and the share of corporate loan book stands at less than 10%.

The bank aims to maintain deposits growth higher than advances growth.

The bank has reduced GNPA ratio by 20 bps to 3.2% and NNPA ratio by 11 bps to 1.1% in Q4FY2024.

The provision coverage ratio stands at 66.4% end March 2024.

The bank aims to reduce GNPA ratio below 2.5% and NNPA ratio to 1%.

The credit cost is expected to be at 45-55 bps.

The bank sees recoveries and upgradations  to remain healthy.

The bank expects to achieve RoA of above 1% and RoE close to 14% in the near term.

The bank expects to reduce cost to income ratio to 55% and cost to average assets ratio to 2.4-2.5% in near term.

The bank aims to double its book in 3-4 years.

The bank would be adding 15-20 branches every year.

The margins are expected to stabilize and would be in the range of 3.65-3.75%.