DCBB reported in-line 3QFY20 operating performance, while higher provisions dragged earnings growth (5% miss), led by greater stress in a few business segments.
Loan growth moderated to 11% YoY, primarily led by continued sluggishness in the corporate banking portfolio.
Fresh slippages remained elevated at INR2.0b (3.6% annualized), which includes one large account from the packaging industry and a higher slippage trend from the commercial vehicle (CV) segment.
Mortgages/SMEs are the key segments and the bank plans to venture in Credit Card, Personal loan segments.
Over 60-70% of deposits are coming from the retail segment.
DCB FY21E earnings may go down on account of higher credit cost and moderate business growth trend.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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