DCB Bank announced its Q3 FY 2026 results, reporting a 22% increase in Profit After Tax (PAT) to INR 185 Cr, compared to INR 151 Cr in Q3 FY 2025. Advances grew by 18% year-on-year, while Deposits saw a 20% increase. The bank reported its highest ever quarterly PAT, despite a one-time impact from new labor codes. Asset quality remained stable.
Financial Performance Highlights
DCB Bank announced robust financial results for the third quarter of fiscal year 2026. Key highlights from the announcement include:
- Profit After Tax (PAT): Increased to INR 185 Cr in Q3 FY 2026, reflecting a 22% growth compared to INR 151 Cr in Q3 FY 2025.
- Advances Growth: Showed a strong year-on-year growth of 18%.
- Deposits Growth: Registered a year-on-year increase of 20%.
Asset Quality and Capital Adequacy
The bank’s asset quality remained well-managed during the quarter:
- Gross NPA: Stood at 2.72% as of December 31, 2025.
- Net NPA: Was reported at 1.10% as of December 31, 2025.
- Provision Coverage Ratio (PCR): Was at 75.35% and 76.06% without considering Gold Loans NPAs, as of December 31, 2025.
Capital Adequacy continues to be a strength for the bank:
- Capital Adequacy Ratio: Was at 15.84% as of December 31, 2025, with Tier I at 13.45% and Tier II at 2.39% (per Basel III norms).
Management Commentary
Mr. Praveen Kutty, Managing Director & CEO, commented on the Q3 FY 2026 results, stating: “The growth momentum in both advances and deposits continues to be robust. As indicated in the last quarter, the NIM continues its upward trend in this quarter as well. Fee income momentum continues to remain strong. Credit costs remain benign with slippages reducing and GNPA & NNPA at their three-year lows. The Bank has registered the highest ever quarterly PAT, despite taking a one-time impact of Rs. 26.87 crore on account of the ‘New Labour Codes’.”
Key Balance Sheet Indicators
The following table presents a summary of key balance sheet parameters:
INR Cr. Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024
Total Assets 81,840 78,890 77,395 76,810 71,567
Deposits 67,754 64,777 62,039 60,031 56,678
Net Advances 56,600 52,975 51,215 51,047 47,780
Investments 19,620 20,496 19,948 20,150 17,963
Shareholders’ Equity 6,350 5,973 5,840 5,691 5,489
Gross NPA Ratio 2.72% 2.91% 2.98% 2.99% 3.11%
Net NPA Ratio 1.10% 1.21% 1.22% 1.12% 1.18%
Coverage Ratio 75.35% 74.15% 74.04% 74.48% 74.76%
CASA Ratio 22.77% 23.52% 23.32% 24.52% 25.09%
Credit Deposit Ratio 83.54% 81.78% 82.55% 85.03% 84.30%
Key Financial Metrics
INR Cr. Q3 FY 2025-26 Q2 FY 2025-26 Q1 FY 2025-26 Q4 FY 2024-25 Q3 FY 2024-25 FY 2024-25
Interest Income 1,861 1,823 1,814 1,742 1,671 6,471
Interest Expense (1,236) (1,227) (1,233) (1,184) (1,128) (4,364)
Net Interest Income 625 596 581 558 543 2,107
Non-Interest Income 221 186 236 219 184 750
Total Income 846 782 817 777 727 2,857
Operating Expenses (523) (478) (490) (472) (456) (1,820)
Operating Profit 323 304 327 305 271 1,037
Provisions other than Tax (74) (61) (115) (67) (67) (208)
Net Profit Before Tax 249 243 212 238 204 829
Tax (64) (59) (55) (61) (53) (214)
Net Profit After Tax 185 184 157 177 151 615
Source: BSE
