DCB Bank reports strong Q2 FY2026 profit growth

DCB Bank announced a profit after tax (PAT) of INR 184 Cr. for Q2 FY2026, marking an 18% increase compared to INR 155 Cr. in Q2 FY2025. This growth was supported by robust advances and deposits, both recording a 19% year-on-year rise. Specific advances categories also performed well, with co-lending growth at 140%, construction finance at 29%, and agri & inclusive banking at 13%.

The bank’s asset quality remained stable, with gross NPA at 2.91% and net NPA at 1.21% as of September 30, 2025. The provision coverage ratio (PCR) stood at 74.15%. Capital adequacy remained strong at 16.41%, with Tier I capital at 13.97% and Tier II at 2.44% under Basel III norms.

Praveen Kutty, managing director & CEO, highlighted that improved collections and recovery efforts contributed to lower credit costs, with expectations for this momentum to continue. The bank's cost to average assets has also decreased for the fifth consecutive quarter, driven by enhanced employee productivity and technology adoption.