DCB Bank achieves record quarterly profit, outlines growth plans

DCB Bank reported a Q2 FY 2026 profit after tax of INR 184 crores, marking its highest-ever quarterly profit. The bank also achieved its highest first-half return on equity in a decade at 12.39%, driven by an 18.79% year-on-year growth in total deposits to INR 64,777 crores and a 19.14% increase in total advances to INR 52,975 crores. This growth reflects a consistent five-quarter pattern aligned with its strategy.

The bank's net interest margin increased from 3.2% in June to 3.23% in the September quarter, supported by a 16 basis points decrease in the cost of deposits from 7.12% to 6.96%. Credit cost for the quarter was 31 bps, with an expectation to remain below 45 bps for the full year. Core fee income reached INR 158 crores, buoyed by third-party distribution, trade finance, and cards.

Strategically, DCB Bank aims for a return on equity of 13.5% for the financial year 2026-27 and 14.5% for 2027-28. Tier 1 capital, including promoter capital infusion post-September 30, stands at 16.27%, with 15.06% specifically attributed to Tier 1 without new capital. The bank also plans to double its book over the next 3 to 3.5 years, while maintaining tight control on capital and operational expenses.