DCB Bank Q2 Results: Net profit up 28% as gross, net NPAs hit multi-year lows; NII rises 17%

Private sector lender DCB Bank Ltd on Friday (October 23) reported a 28.3% year-on-year (YoY) rise in net profit to ₹236 crore for the September quarter, compared with ₹184 crore in the year-ago period.

Net interest income (NII), the difference between interest earned and interest expended, increased 17.3% YoY to ₹699 crore from ₹596 crore. Operating profit rose 26% YoY to ₹383 crore in the September quarter, compared with ₹304 crore in the corresponding period last year.

On the asset quality front, the bank's gross non-performing assets (NPA) ratio improved to 2.29% in the September quarter from 2.43% in the previous quarter. The net NPA ratio declined to 0.73% from 0.84% quarter-on-quarter (QoQ).

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DCB Bank's provision coverage ratio (PCR) stood at 81.38% as of September 30, 2026, and at 82.01% excluding non-performing assets (NPAs) from gold loans. The bank's capital adequacy ratio stood at 16.63% as of September 30, 2026, comprising Tier I capital of 14.57% and Tier II capital of 2.06%, in accordance with Basel III norms.

Praveen Kutty, Managing Director and CEO, said, "Robust growth in both deposits and advances, steadily increasing operating profit, Gross NPA & Net NPA at multi-year lows and PCR at a multi-year high, culminating in the highest-ever quarterly PAT for the fifth consecutive quarter, ROA in excess of 1% and ROE in excess of 14.5%."

Shares of DCB Bank Ltd ended at ₹201.95, down by ₹4.00, or 1.94%, on the BSE.

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