Non-public sector lender DCB Financial institution on Saturday reported a Four per cent year-on-year progress in its revenue after tax (PAT) at Rs 338 crore for the complete monetary 12 months ended March 31, 2020 (FY20), in comparison with Rs 325 crore in FY19. The revenue was impacted by Rs 63 crore COVID-19 regulatory package deal provision, the lender mentioned in a regulatory submitting.
In FY20, the financial institution earned Web Curiosity Revenue (NII) of Rs 1,265 crore as towards Rs 1,149 crore, a progress of 10 per cent. The Non Curiosity Revenue stood at Rs 391 crore versus Rs 350 crore in the identical interval final 12 months delivering a rise of 12 per cent.
DCB Financial institution’s working revenue jumped by 16 per cent to Rs 753 crore in comparison with Rs 647 crore within the earlier fiscal.
For the fourth quarter ended March 31, 2020 (This autumn FY20), DCB Financial institution reported a 28.6 per cent Y-o-Y fall in web revenue at Rs 68.76 crore, dented by rise in provisions attributable to coronavirus disaster.
Provisions and contingencies spiked 240 per cent to Rs 118.24 crore in March quarter, together with Rs 63 crore associated to COVID-19 regulatory package deal provisions from Rs 34 crore in the identical interval final 12 months. The sequential rise in whole provisions was 100.Four per cent.
Web curiosity revenue rose by 7.6 per cent Y-o-Y to Rs 323.7 crore, whereas web advances elevated to Rs 25,345 crore from Rs 23,568 crore in March 2019.
On the asset entrance, DCB Financial institution’s asset high quality declined throughout FY20, with gross non-performing property (NPAs) ratio rising to 2.46 per cent versus 1.84 per cent within the year-ago interval. Web NPA jumped at 1.16 per cent as in comparison with 0.65 per cent in FY19.
“The NPA for the month of March 2020 was roughly Rs 42.7 crore (Mortgages Rs 26.1 crore, Business Automobile (CV) Rs 6.5 crore, SME Rs Four crore, Company Rs 3.Four crore). The financial institution adopted a conservative method and didn’t take the advantage of COVID-19 on the whole March 2020 slippage. Additionally, attributable to disruptions from March 15, 2020 an estimated Rs 15 crore couldn’t be upgraded / recovered throughout numerous mortgage portfolio,” the financial institution mentioned within the alternate submitting.
As on March 31, 2020, the financial institution’s deposits grew by 7 per cent to Rs 30,370 crore, with retail CASA and retail time period deposits offering a secure useful resource base to the financial institution.
On COVID-19, the financial institution mentioned the financial exercise has been considerably affected by the lockdown step taken by the federal government to comprise the unfold of coronavirus. “As soon as lockdown restrictions are eased, mortgage demand could pick-up slowly in Three to six months (relying upon kind of enterprise/trade). Smaller places could recuperate before metropolitan/giant cities. The restoration might not be clean and there could also be additional disruptions within the coming months,” it mentioned.
The financial institution intends to re-look in any respect its credit score insurance policies in gentle of COVID-19, DCB Financial institution mentioned.