DCB turns profitable in FY11 on strong loan growth

Strong income from investments and loans helped Development Credit Bank (DCB) report a net profit of Rs 13.96 crore for the fourth quarter (January-March), compared with a net loss of Rs 4.85 crore during the same period last year. The rebound was also because provisions for contingent liabilities declined to Rs 8.04 crore for the quarter compared with Rs 24.03 crore last year. Total interest income rose to Rs 177.48 crore from Rs 138.92 crore on rising loan income and income from investments, the company said in a filing with the stock exchanges. For the full year ended March 31, DCB posted a net profit of Rs 21.43 crore compared with a net loss of Rs 78.45 crore. Year-on-year, contingent liabilities dropped to Rs 56.80 crore from Rs 121.01 crore a year ago, while interest from loans rose to Rs 636.26 crore from Rs 458.97 crore, the bank said in the press release. At 14:35 hrs, shares of DCB were trading at Rs 56.20, up 14% over the previous. Source: www.moneycontrol.com Thanks, Gaurav Agarwal Head Dealer DENIP Consultants Pvt Ltd