New Delhi, May 23 (PTI) DCB Bank on Saturday reported a 28 per cent decline in net profit at Rs 69 crore for the March quarter, impacted by the coronavirus crisis.
The private sector lender had posted a net profit of Rs 96 crore in the same period of 2018-19.
Income during the January-March quarter of FY20 rose by 8.5 per cent to Rs 434 crore, as against Rs 400 crore in the same period of the preceding fiscal, DCB Bank said in a release.
The bank’s profit after tax in FY20 stood at Rs 338 crore, up 4 per cent from Rs 325 crore in 2018-19.
Income during the year grew 10.5 per cent to Rs 1,656 crore as against Rs 1,499 crore in the preceding fiscal.
“Both FY 2020 and Q4 2020 Profit Before Tax was impacted by Rs 63 crore Covid-19 Regulatory Package Provision. The bank conservatively made more provision than required as per guidelines,” it said.
The bank’s asset quality weakened, with gross non-performing assets (NPAs) or bad loans rising to 2.46 per cent of gross advances as on March 31, 2020, from 1.84 per cent in the corresponding quarter of the previous fiscal.
Likewise, net NPA ratio rose to 1.16 per cent from 0.65 per cent.
DCB Bank’s Managing Director and CEO Murali M Natrajan said, “Our main aim in the next two quarters would be to carefully navigate through the difficult and uncertain environment focusing on handling potential portfolio stress, assisting loan customers within regulatory guidelines, effect cost reduction and maintain adequate liquidity.”
He said the bank is of the view that the second moratorium relief announced by the RBI has come at the right time.
“… because lock-down restrictions are being reduced so cash flows in the economy should start to pick up enabling customers to service their loan obligations more easily post the moratorium period,” Natrajan added.