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.

Found this insight useful?

For more such insights, delivered daily in real-time for free, download the inChat app from the Play Store. Download Now!

Please share with your friends and family as well. You can also subscribe to one of our channels listed at the bottom of this page.