Private sector lender DCB Bank on Saturday reported a marginal decline of 2 per cent in its net profit for Q1 FY21 at Rs 79 crores as compared to Rs 81 crores in the same period of last financial year.

DCB Bank is a new-generation private sector bank with 336 branches across 19 states and two union territories.

Q1FY21 Q1FY20 Change
Net Profit (in crores)7981-2%
Net Interest Income (in crores)30673047+1%
Net NPA (in %)0.99%0.88%+0.11%
Year on Year Comparison

In order to better understand what is Net Interest Income, Net NPA and CASA, kindly go through our Glossary section at the end.

The amount of net NPAs too moved up from Rs 196 crore to Rs 248 crore in Q1 FY21.

Worryingly, provisions and contingencies increased to Rs 84 crores from  Rs 41 crores in the same period. The percentage of return on assets came down to 0.82 from 0.89 on an annualised basis.

The interest earned in Q1 FY21 totalled Rs 873 crores as compared to Rs 858 crores in Q1 FY20 while interest expended was Rs 566 crore as against Rs 553 crores.


The COVID-19 crisis had a considerable impact on DCB’s balance sheet. But the Bank is hopeful that the situation will improve. The Bank is steadily reducing the level of excess liquidity and consequently, the NIMs are likely to improve in 3 to 6 months.

You can view the Financial Report here and Investor Presentation here.


  • Net Interest Income (NII): represents the difference in the interest earned from a bank’s lending activities to its customers and the interest paid to account holders or depositors, if we give a loan of Rs. 100 to a borrower at 7% interest and then someone deposits Rs. 100 with the bank at an interest rate of 4%. Then the remaining 3% is called Net Interest Income.
  • Net Interest Margin (NIM): It is arrived at by dividing Net Interest Income with the Average income earned from interest producing assets such as loans given out to borrowers.
  • Non Performing Assets(NPA): they are assets for which interest is overdue for more than 90 days. It includes sub-standard assets, doubtful assets and loss assets – all these three assets combined. In other words, they are bad loans for which interest has not been realized for more than 90 days
  • Current and Savings account (CASA): is the amount of money that gets deposited in the Current and Savings Accounts of bank customers. The bank pays very low or no interest for deposits in current accounts whereas the deposits in Savings Accounts receives slightly higher interest rates. It is the cheapest and major source of funds for banks. This fund source is in turn used to distribute Home LoansPersonal Loans etc