DCB Bank slips 14% on disappointing June quarter results
17/07/2019 12:07
Shares of DCB Bank fell by 14 per cent on Wednesday at the Bombay Stock Exchange after the private sector lender reported a sub-par performance in June quarter (Q1FY19) led by decline in loan growth, sequential rise in fresh slippages and non-performing assets (NPAs), and continued pressure on margin.

The bank’s loan growth of 13 per cent year-on-year (YoY) in Q1FY19 was the slowest in the past five years. The gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - rose to 1.96 per cent against 1.86 per cent in the year-ago quarter. Net NPA expanded to 0.81 per cent during June quarter as compared to 0.72 per cent in the corresponding quarter last year.

The bank’s net interest margins (NIMs) were under pressure and declined 0.23 bps YoY and 11 bps QoQ to 3.67 per cent in Q1FY20 led by rise in cost of funds and muted loan growth.

Following the update, shares of the company slipped as much as 14 per cent in the intra-day trade at Rs 205 a piece on BSE.

On NSE, the shares of the company were trading at Rs 208.65 apiece, down by 12.75 per cent.

Meanwhile, the BSE Sensex was at 39,252.46, up by 121.42 points or 0.31 per cent at 12:05 hours.