Mumbai: The Board of Directors of DCB Bank Ltd. (BSE: 532772; NSE: DCB) at its meeting in Mumbai on May 07, 2022, took on record the audited financial results of the Fourth Quarter (Q4 FY 2022) and the Year ended March 31, 2022 (FY 2022).
Highlights:
1) Profit After Tax
The Bank’s Profit After Tax (PAT) for Q4 FY 2022 was at INR 113 Cr. In comparison
Profit After Tax for Q4 FY 2021 was at INR 78 Cr., growth of 46%.
PAT was at INR 288 Cr. in FY 2022 as against INR 336 Cr. in FY 2021.
2) Operating Profit
The Operating Profit for Q4 FY 2022 was INR 221 Cr. as against INR 201 Cr. for Q4 FY 2021.
Operating Profit for FY 2022 was INR 797 Cr., as against INR 886 Cr. for the same period last year. FY 2021 had the benefit of much higher one-time Treasury Income due to favorable interest rate movements.
3) Net Interest Income
The Bank earned Net Interest Income of INR 380 Cr. for Q4 FY 2022 as against INR 311 Cr. for Q4 FY 2021.
Net Interest Income in FY 2022 was INR 1,358 Cr. as against INR 1,287 Cr.
In Q4 FY 2022, Net Interest Margin (NIM) was at 3.93% as against 3.46% in Q4 FY 2021.
NIM was at 3.56% in FY 2022 as against 3.59% in FY 2021.
4) Non-Interest Income
In FY 2022, Non-Interest Income (Fee) was at INR 452 Cr. as against INR 446 Cr. for the same period. As mentioned above, FY 2021 had the benefit of much higher one-time Treasury Income due to favorable interest rate movements.
5) Cost Income Ratio
Cost Income Ratio (CI) for FY 2022 was at 55.96% as compared to 48.87% in FY 2021. As the COVID-19 pandemic appears to be receding opening business opportunities in the chosen self-employed segment, the Bank is continuing to increase its frontline headcount / capacity to step-up growth in the coming months.
As the Bank is predominantly in the small ticket secured Retail and SME/MSME business, headcount / capacity increase, initially impacts CI ratio. If the business volume increases as planned, then CI ratio is expected to decline over time.
6) Return on Equity
Return on Equity (ROE) (Annualized) was at 12.12% in Q4 FY 2022 as compared to 8.96% in Q4 FY 2021.
ROE was at 7.92% in FY 2022 as compared to 9.99% in FY 2021.
7) Dividend
The Board of Directors have recommended a dividend of INR 1 per share @ 10% for the year ended March 31, 2022 subject to approval of the members in the ensuing Annual General Meeting.
8) Capital Adequacy
Capital Adequacy continues to be strong and as on March 31, 2022, the Capital Adequacy Ratio was at 18.92% (with Tier I at 15.84% and Tier II at 3.08% as per Basel III norms).
9) Deposits
The Bank has been steadily growing the Retail Term Deposits (less than INR 2 crores) and reducing Bulk Deposits. As on March 31, 2022, the top 20 deposits ratio was at 6.31%.
In FY 2022, the Bank achieved CASA growth of 37% over the previous year.
CASA Ratio was at 26.75% as on March 31, 2022, as against 22.85% as on March 31, 2021.
10) Advances
The main target market of the Bank is MSME/SME segment. In terms of products, the Bank is focused on growing Home Loans, Business Loans (LAP), Gold Loans, MSME/SME (CC/OD/Term), KCC (Kisan Credit Card), Tractor Loans, Loans to MFIs and MFI-BC Loans. In FY 2022, the Bank also embarked on lending in TReDS platform and Gold Loans through Co-lending partnership.
In Corporate segment, the Bank continues to cautiously target short term loans.
