DCB Bank posts 10% rise in fourth quarter profit

DCB Bank on Friday posted a 10 per cent rise in net profit at ₹70 crore for the fourth quarter ended March 31, 2016, against a net profit of ₹63 crore in the year-ago period.

For FY16, the bank clocked a net profit of ₹195 crore against ₹191 crore in FY15.

The bank plans to add 600 employees in the current fiscal as against 1,000 added last fiscal, according to Murali M Natrajan, MD & CEO. The bank has about 4,300 employees.

In a telephone interaction with

BusinessLine, after announcing the results, Natrajan said that the bank’s plan of action was to add more than 100 branches by FY18 to take its number to over 300.

The bank has been investing a lot in customer facing technology, such as UPI and Aadhaar-based ATMs, he added.

On how the bank would tackle poaching of its employees once 21 new entities — payments banks and small finance banks — enter the system, Natrajan said that DCB Bank had already put in place a system which incentivised performance, but retention is a challenge for the sector as a whole.

For FY16, net advances grew 23 per cent y-o-y to ₹12,921 crore while deposits grew 18 per cent to ₹14,926 crore.

The bank’s investment book grew over 9 per cent to ₹4,333 crore. Net interest margin expanded 22 basis points to 3.94 per cent while its CASA ratio remained flat at 23 per cent.