A recent press report said that Development Credit Bank has reported a net profit of Rs 8.8 crore for the quarter ended June 30, 2011, against a net loss of Rs 2.9 crore in the corresponding year-ago quarter. The deposits grew by 17 per cent to Rs 5,980 crore, while advances grew by 22 per cent to Rs 4,234 crore.
Mr. Murali Natrajan, MD and CEO, DCB said that the opportunity to grow advances is limited in an environment when cost of funds continues to increase and the bank has to take measured steps and standardize growth for the next few months.
Reports said that in the June ended quarter the net interest margin went down to 3.1 per cent from 3.12 per cent and the Capital adequacy also dropped to 12.92 per cent from 13.8 per cent. The ratio of net non-performing assets to total assets improved to 1.19 per cent from2.52 per cent. The bank is involved in offering loans home loan, auto loan, personal loan, business loans etc.
Reports also said that the bank has received approval from the Reserve Bank of India to open 10 new branches in May 2011. These include six branches in the metros and four in semi-urban and rural areas.