DCB Bank in the reckoning

DCB Bank is amongst the top three gainers on the bourses today. The stock, intra day, rose over 7% at Rs.80.60 and volumes are up 3 times.

This sudden perk up on interest on the counter is on account of its Q3FY16 performance. The net profit came in better than expected – it was at Rs.41 crore, which is over 3% (YoY) lower; the market had expected the net profit to come in around Rs.35-37 crore and the actuals have bettered that despite being YoY lower. NII surged 32% at Rs.161 crore.

The good news is that asset quality remained stable. Gross NPA was at 1.98% v/s 1.99% (QoQ) and Net NPA actually fell from 1.61% to 1.12%.