DCB Bank Reports Strong FY 2026 Performance with 19 Percent Growth in PAT; Asset Quality Improves to Multi-Year Lows

April 25: DCB Bank announced its financial results for the fourth quarter and full year ended March 31, 2026, reporting strong growth across profitability, business expansion, and asset quality, while maintaining a robust capital position.

Financial Performance

The Bank’s Profit After Tax (PAT) for Q4 FY 2026 stood at INR 206 crore, marking a 16% increase compared to INR 177 crore in Q4 FY 2025. For the full year FY 2026, PAT rose to INR 732 crore, registering a growth of 19% over INR 615 crore in FY 2025.

Business Growth

The Bank continued its strong growth trajectory, with advances growing 18% year-on-year. Growth was driven by key segments including mortgages (8%), co-lending (25%), construction finance (14%), and agri & inclusive banking (19%). Deposits also witnessed robust growth of 21% year-on-year, reflecting strong customer trust and franchise strength.

Asset Quality

Asset quality showed significant improvement during the year:

• Gross NPA (GNPA) stood at 2.45% as of March 31, 2026
• Net NPA (NNPA) stood at 0.89%
• Provision Coverage Ratio (PCR) improved to 78.42%
• PCR excluding gold loan NPAs stood at 78.97%

Capital Adequacy

The Bank maintained a strong capital base, with a Capital Adequacy Ratio (CAR) of 16.55% as of March 31, 2026, comprising Tier I capital of 14.26% and Tier II capital of 2.29%, in line with Basel III norms.

Management Commentary

Commenting on the results, Mr. Praveen Kutty, Managing Director & CEO, said:

“The growth momentum continues to be strong both in advances and deposits. NIM continues its upward trend, driven by a lower cost of deposits. Core fee income has strengthened; however, the highlight of the quarter is the improvement in asset quality. GNPA and NNPA are at their seven-year end lows, enabling the Bank to register its highest ever quarterly PAT.”

Outlook

Backed by a strong balance sheet, improving asset quality, and consistent growth across core segments, the Bank remains well-positioned to leverage emerging opportunities and drive sustainable long-term value for all stakeholders.