DCB Q2 net profit up 70% to Rs 22 cr

Development Credit Bank  's (DCB) net profit rose by 70% year-on-year to Rs 22.1 crore in the second quarter of FY13.

Net interest income went up by 8.77% to Rs 62 crore in the quarter ended September 2012 from Rs 57 crore in a year ago period.

Gross non-performing assets (NPAs) fell by 53 basis points at 3.65% and net NPAs went down by 7 basis points to 0.68% QoQ.

Capital adequacy ratio declined 80 basis points QoQ to 13.7% in the July-September quarter of 2012.

y the Reserve Bank of India for the entire industry in FY13.

When the fear of non-performing assets (NPAs) continues to loom large for most of the banks, HDFC Bank's substantial loan growth did not come at the cost of credit quality.

This was evident in its stable NPA ratios. Gross NPA ratio improved to 0.91% as against 0.97% in April-June quarter and 1% in Q2, FY12. Net NPA ratio remained unchanged at 0.20%.

With asset quality remaining stable, provisions and contingencies for the quarter ended September 30, 2012 were Rs 293 as against Rs 366 crore in Q2, FY12, the bank said in a press release.

The provisions consisted of three components: specific, general and floating. As a standard practice, the bank maintains a floating provision every quarter in anticipation of bad loans especially when it manages to keep NPAs under control. The practice, according to banking analysts, would help retain the bank's good health.

Its deposit base rose around 19% y-o-y to Rs 2.74 lakh crore achieving RBI's projection for deposit growth at 16% in 2012-13. Savings deposits grew nearly 15% to Rs 79,150 crore.

Source: www.moneycontrol.com

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