DCB Bank Q1 Results Review - One-Offs, Higher Opex Drag Down Earnings: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.DCB Bank Ltd. reported 3.5% YoY decline in profit after tax to Rs 1.3 billion (7% miss) in Q1 FY25, due to lower net interest income and higher opex.  Net interest income grew 5.5% YoY to Rs 4.97 billion (6% miss). NIMs moderated 23 bp QoQ to 3.39%, affected by interest reversals (due to regulatory changes) and the replacement of penal interest with penal charges.DCB Bank's advances grew 19% YoY/3.1% QoQ, supported by healthy growth in mortgages and gold loans. Deposits rose 20.2% YoY/4.7% QoQ, led by growth in term deposits. Current account and savings account mix moderated 62 bp QoQ to 25.4%.Fresh slippages increased to Rs 3.72 billion (versus Rs 3.22 billion in Q4 FY24) due to higher slippages in mortgages. Gross /net non-performing asset ratios increased by 10 bp/7 bp QoQ to 3.33%/1.18%.We cut our earnings estimates by 4.3%/3.8% for FY25/FY26. We estimate FY26 return on asset/return on equity at 0.93%/13.3%. Reiterate Buy with a target price of Rs 175 (based on one time FY26E adjusted book value)..Click on the attachment to read the full report:.Federal Bank Q1 Results Review - All Time High Profitability: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

DCB Bank Q1 Results Review - One-Offs, Higher Opex Drag Down Earnings: Motilal Oswal

Loan growth was steady, led by healthy growth in mortgages and gold loans, while deposits too grew strongly, says the brokerage.

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DCB Bank Q1 Results Review - One-Offs, Higher Opex Drag Down Earnings: Motilal Oswal

Loan growth was steady, led by healthy growth in mortgages and gold loans, while deposits too grew strongly, says the brokerage.

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