Weak NII drags earnings

Company
25 Jan 2024
5 Min read 
  • DCB Bank reported 11% YoY growth in PAT, led by weak NII growth.
  •  NIM moderated 21bp QoQ to 3.48% during the quarter.
  •  Advances grew 18% YoY, supported by healthy growth in mortgages, Agri, and co-lending advances.
  •  Deposits rose 19% YoY, led by growth in SA deposits, resulting in an increase in CASA ratio.
  •  Slippages increased, resulting in a rise in GNPA to 3.4%.
  •  Earnings estimates for FY24/FY25 have been trimmed amid cost and margin pressures.
  •  Neutral rating maintained with a TP of INR150.
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