The company's third quarter net profit increased by 51 percent at Rs 86.1 crore despite higher provisions.
Share price of DCB Bank added 1 percent in the early trade on Thursday after research house Kotak Institutional Equities has maintained buy rating on the stock and raised target to Rs 210 from Rs 185 per share.
The company has reported 51 percent YoY earnings growth led by 42% YoY operating profit growth. Also, most of the key metrics were stable on QoQ basis.
It believes that there is a lower concern on asset quality resulted in RoAs moving past 1 percent and RoEs of 11 percent.
The company's third quarter net profit increased by 51 percent at Rs 86.1 crore despite higher provisions. The growth was largely driven by NII, other income and operating income.
Profit in same quarter last year stood at Rs 57 crore.
Net interest income, the difference between interest earned and interest expended, grew by 17.2 percent year-on-year to Rs 293.6 crore with credit growth of 23 percent YoY.
Also Read - DCB Bank Q3 profit jumps 51% to Rs 86 cr, provisions remain elevated
Net interest margin was unchanged at 3.83 percent in Q3 QoQ, but contracted from 4.12 percent in same period last year.
Asset quality slightly weakened during the quarter. Gross non-performing assets (NPA) as a percentage of gross advances were higher at 1.92 percent in Q3 against 1.84 percent in Q2 and net NPAs were higher at 0.71 percent against 0.70 percent QoQ.
At 09:22 hrs DCB Bank was quoting at Rs 182.35, up Rs 0.85, or 0.47 percent on the BSE.
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