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Higher income and lower provisions helped Development Credit Bank (DCB) report a 111 per cent jump in net profit in April-June.
In the reporting period, the private sector bank, which has 86 branches spread across 13 States and two Union Territories, reported a net profit of Rs 19 crore, against Rs 9 crore in the year-ago period.
As on June-end, the bank’s deposits grew by 14 per cent year-on-year to Rs 6,829 crore (Rs 5,980 crore). Advances grew by 29 per cent to Rs 5,449 crore (Rs 4,234 crore).
“We have made a good start to FY2013. We aim to build further momentum in the coming months. However, we will remain cautious given the current external environment,” said Mr Murali M. Natarajan, MD and CEO.
The bank, in a statement, said retail deposits (current and savings bank accounts as well as term deposits) continued to be stable, accounting for 83 per cent of total deposits as on June-end, against 82 per cent as on June-end 2011.
As on June-end, the major shareholders in DCB includes promoter and promoter group — Aga Khan Fund for Economic Development (18.18 per cent) and Platinum Jubilee Investments Ltd (1.02 per cent); South Indian Bank (3.95 per cent); and Tata Capital Financial Services (2.74 per cent).
Shares of DCB ended 3.17 per cent lower at Rs 45.80 a share on the Bombay Stock Exchange against the previous close of Rs 47.30.
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