DCB Bank Reports Strong Profitability Growth in Q1 FY 2027
DCB Bank Ltd. announced its unaudited financial results for the first quarter of fiscal year 2027, ended June 30, 2026. The Board of Directors approved the results, along with review reports by statutory auditors Varma & Varma, Chartered Accountants, and Deloitte Haskins & Sells, Chartered Accountants.The bank reported a significant increase in Profit After Tax (PAT) for Q1 FY 2027, reaching INR 213 Cr, compared to INR 157 Cr in the first quarter of FY 2026, marking a 36% growth.
Operational Highlights and Financial Strength
Key operational parameters showcased robust growth across advances and deposits. Advances grew by 17% year-on-year, while deposits saw a 20% increase over the same period.As of June 30, 2026, the Gross NPA ratio stood at 2.43%, and the Net NPA ratio was recorded at 0.84%. The Provision Coverage Ratio (PCR) was reported at 79.81%, with the PCR excluding Gold Loans NPAs standing at 80.46%.
Capital adequacy remained strong, with the bank reporting a Capital Adequacy Ratio of 17.03% as of June 30, 2026. This ratio includes Tier I at 14.90% and Tier II at 2.13%, measured against Basel III norms.
Management Commentary
Praveen Kutty, Managing Director & CEO, commented on the Q1 2027 results, stating that both deposits and advances demonstrated continuous strong growth momentum. He noted a marked improvement across most profitability indicators, resulting in the 36% rise in profit after tax compared to the previous year.Kutty added that cost to average assets was at a historic low, supported by improving portfolio quality, lower credit costs, and reduced gross and net NPAs. This combination allowed the Bank to register its highest quarterly PAT ever, marking the fourth consecutive quarter of growth with a 2.05% improvement in Return on Equity (ROE) since last year.
Key Balance Sheet Parameters and Performance Indicators
The bank's performance across various quarters and key balance sheet metrics is detailed below:| INR Cr. | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 |
|---|---|---|---|---|---|
| Total Assets | 88,752 | 88,069 | 81,840 | 78,890 | 77,395 |
| Deposits | 74,482 | 72,583 | 67,754 | 64,777 | 62,039 |
| Net Advances | 59,951 | 60,022 | 56,600 | 52,975 | 51,215 |
| Investments | 20,873 | 20,378 | 19,620 | 20,496 | 19,948 |
| Shareholders' Equity | 6,771 | 6,535 | 6,350 | 5,973 | 5,840 |
| Gross NPA Ratio | 2.43% | 2.45% | 2.72% | 2.91% | 2.98% |
| Net NPA Ratio | 0.84% | 0.89% | 1.10% | 1.21% | 1.22% |
| Coverage Ratio | 79.81% | 78.42% | 75.35% | 74.15% | 74.04% |
| CASA Ratio | 21.65% | 22.38% | 22.77% | 23.52% | 23.32% |
| Credit Deposit Ratio | 80.49% | 82.69% | 83.54% | 81.78% | 82.55% |
Q1 FY 2026-27 Financial Results Overview (in INR Cr.)
The following table presents the detailed financial performance for the quarter ended June 30, 2026, alongside corresponding previous periods and full fiscal year data:| Metric | Q1 FY 2026-27 | Q4 FY 2025-26 | Q3 FY 2025-26 | Q2 FY 2025-26 | Q1 FY 2025-26 | FY 2025-26 |
|---|---|---|---|---|---|---|
| Interest Income | 1,984 | 1,907 | 1,861 | 1,823 | 1,814 | 7,404 |
| Interest Expense | (1,300) | (1,252) | (1,236) | (1,227) | (1,233) | (4,948) |
| Net Interest Income | 684 | 655 | 625 | 596 | 581 | 2,457 |
| Non-Interest Income | 196 | 212 | 221 | 186 | 236 | 855 |
| Total Income | 880 | 867 | 846 | 782 | 817 | 3,312 |
| Operating Expenses | (536) | (525) | (523) | (478) | (490) | (2,016) |
| Operating Profit | 344 | 342 | 323 | 304 | 327 | 1,296 |
| Provisions other than Tax | (57) | (69) | (74) | (61) | (115) | (319) |
| Net Profit Before Tax | 287 | 273 | 249 | 243 | 212 | 977 |
| Tax | (74) | (67) | (64) | (59) | (55) | (245) |
| Net Profit After Tax | 213 | 206 | 185 | 184 | 157 | 732 |
DCB Bank Limited operates as a scheduled commercial bank, managing business segments including Retail, micro-SMEs, SMEs, mid-Corporate, Microfinance Institutions (MFI), Agriculture, Government, Public Sector, Indian Banks, Co-operative Banks, and Non Banking Finance Companies (NBFC). As of June 30, 2026, the Bank operated 480 branches across 20 states and two union territories.
DCBBANK Stock Price Movement
DCB Bank Limited shares shed 1.26% in post-market trading today, closing at ₹186.24 after dipping ₹2.39 from its previous close. The equity saw a total traded volume of 1.03 million shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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