DCB Bank Q2FY26 Net Profit Rises 18% YoY to ₹184 Crore; Deposits and Advances Grow 19%

Mumbai, October 17, 2025 – The shares of DCB Bank Limited closed with a 0.22% dip on Friday, with the Bank posting an 18% year-over-year increase in net profit to ₹184 crore in the quarter ended September 30, 2025 (Q2FY26), which was assisted by healthy deposit and advances growth and operational efficiency improvements.

Strong Financial Performance

DCB Bank released a satisfactory Q2 FY26 result for the period ending September 30, 2025, on the heels of healthy growth in its core businesses and improving asset quality. Bank’s overall income increased to ₹782 crore from ₹714 crore in Q2FY25. Net Interest Income (NII) increased 17% year-on-year to ₹596 crore with the help of a jump in interest income to ₹1,823 crore from ₹1,568 crore, while the rise in interest expenses was 16% to ₹1,227 crore.

Operating profit rose 19% to ₹304 crore from ₹255 crore in the corresponding quarter of the previous year. Non-interest income was lower by 9% at ₹186 crore from ₹205 crore, while the net profit (PAT) was up 18% to ₹184 crore from ₹155 crore in Q2FY25.

In asset quality, the bank maintained a healthy balance sheet, with Gross NPA decreasing to 2.91% from 3.29% in the preceding year and Net NPA decreasing to 1.21%. The Provision Coverage Ratio (PCR) was healthy at 74.15%, indicating good risk management.

The bank’s capital position was sound, with a Capital Adequacy Ratio (CAR) of 16.41%, consisting of 13.97% Tier I and 2.44% Tier II, as of September 30, 2025. Overall, DCB Bank reflected healthy growth in its loan and core business while maintaining a healthy capital and asset quality position.

Balance Sheet Snapshot

DCB Bank, until September 2025, had assets of ₹78,890 crore, up by 14% from ₹68,955 crore in the previous year, evidencing healthy balance sheet growth. Deposit levels increased 19% year-on-year to ₹64,777 crore, and net advances increased 19% to ₹52,975 crore, with a healthy pick-up in lending in many segments.

Bank’s shareholders’ equity increased 12% to ₹5,973 crore in September 2024 from ₹5,351 crore in the previous September, reflecting healthy capital gains. CASA moderated to 23.52% compared with 25.61% a year earlier, down by 209 basis points.

Also driving accelerated growth were the bank’s mainstream segments, with mortgages up 13%, co-lending up 140%, construction finance up 29%, and agri & inclusive up 13%, mirroring the bank’s focused growth in diversified loan book segments.

Advances also had a healthy pickup at the bank, where growth was fueled by 13% in mortgages, 140% in co-lending, 29% in construction finance, and 13% in agri & inclusive segments.

Management Commentary

Praveen Kutty, Managing Director & CEO, DCB Bank, remarked: “Deposits and advances growth remains robust. Strides made in decreasing the cost of deposits and borrowings have increased margins. Improved employee productivity and technology adoption have reduced costs in five straight quarters. Improved recovery has decreased credit cost, and we anticipate this momentum to carry on in subsequent quarters.”

DCB Bank Share Price Update

DCB Bank Limited shares were near ₹129.62 on October 17, 2025, and decreased by 0.22%. DCB Bank Limited shares have increased 13% over the past year, 7% year to date, and decreased 0.19% over the past 5 days.

REF: https://nsearchives.nseindia.com/corporate/Priyeshjain_17102025155229_BSENSEDCBPressReleaseQ2Results17102025.pdf

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