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DCB’s profit on growth in advances has grown by 12%

As per the recent press release from the Development Credit Bank it is seen that the net profit of DCB has grown to Rs.13 crore for the quarter ended September 30, 2011 compared to the corresponding period last year which was Rs.5 crore. This was because of the good growth in advances and less provisions during the period.

There was a growth in net advances by 12% to Rs.4, 315 crore which was Rs.3, 840 crore last year. There was an increase in the total deposits from Rs.5495 crore to Rs.6261 crore.

The share contributed by the low cost Current Account (CA) and Savings Account (SA) in the total deposits has been decrease by 33.2 per cent from 34.6 per cent.

The report also revealed that there has been a substantial increase from 3.14 per cent to 3.41 per cent. The provisions have also shown declined considerably from Rs.16 crore to Rs.7.5 crore.  The bank has also maintained a good Capital Adequacy Ratio at 13.10 per cent.

Mr. Murali M. Natrajan, the Managing Director and CEO of DCB said that they would continue to improve the performance of the banks. He also added that it is very essential to be extra cautious in the highly competitive and uncertain environment.

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