DCB Bank plunges 14%

DCB Bank plunges 14%

Agency News

Shares of DCB Bank plunged 14 per cent to Rs 205 in Wednesday's early morning trade.

Bad June Quarter result is said have affected the stock price of DCB Bank. Decline in loan growth, sequential rise in fresh slippages and non-performing assets (NPAs), and continued pressure on margin were some of the grey areas of the repot.

The bank’s loan growth of 13 per cent year-on-year (YoY) in Q1FY19 was the slowest in the past five years. The gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - rose to 1.96 per cent against 1.86 per cent in the year-ago quarter. The bank’s net interest margins (NIMs) were under pressure and declined 0.23 bps YoY and 11 bps QoQ to 3.67 per cent in Q1FY20 led by rise in cost of funds and muted loan growth.

Thus far in calendar year 2019, the stock has outperformed the market and rallied 42 per cent. It hit an all-time high of Rs 245 on June 25, 2019.