DCB Bank has now put out its biggest quarterly profit five quarters running. The DCB Bank Q2 results for the September 2026 quarter, approved by the board on Friday, October 23, show net profit of ₹236 crore against ₹184 crore a year earlier, a rise of about 28%, according to the bank’s press release filed with the exchanges. The release rounds that growth to 29%; on its own rounded figures the math works out to 28.3%.
In this article
DCB Bank Q2 results: the key numbers
All figures below are standalone, in crore rupees, comparing the September 2026 quarter (Q2 FY27) with the September 2025 quarter.
- Net interest income: ₹699 crore versus ₹596 crore, up about 17.3%.
- Non-interest income: ₹249 crore versus ₹186 crore, up about 34%.
- Operating profit: ₹383 crore versus ₹304 crore, up 26%.
- Provisions (other than tax): ₹65 crore versus ₹61 crore.
- Net profit: ₹236 crore, also up about 10.8% from ₹213 crore in the June quarter.
Operating expenses rose to ₹565 crore from ₹478 crore, roughly 18%. That’s slower than the growth in total income, which is why operating profit grew faster than the top line. Still, costs ate up close to 60% of total income this quarter, so the bank is not a lean operation yet.
Asset quality keeps getting cleaner
This is the part management leaned on. Gross NPAs fell to 2.29% of loans as of September 30, from 2.43% in June and 2.91% a year ago. Net NPAs came down to 0.73% from 0.84% in June and 1.21% a year earlier. The provision coverage ratio rose to 81.38%, or 82.01% if gold loan NPAs are left out. MD and CEO Praveen Kutty said in the release that gross and net NPAs are at multi-year lows and coverage is at a multi-year high, and that return on assets was above 1% with return on equity above 14.5%.
Capital looks comfortable too. The capital adequacy ratio was 16.63%, with Tier I at 14.57% and Tier II at 2.06% under Basel III norms.
Growth, and the one soft spot
Advances grew 21% year-on-year and deposits 19%, per the release. Net advances stood at ₹64,127 crore and deposits at ₹76,839 crore at the end of September. The credit-deposit ratio climbed to 83.46% from 80.49% in June.
The weaker line is the deposit mix. The CASA ratio, the share of cheaper current and savings deposits, was 22.30%, down from 23.52% a year ago, though up from 21.65% in June. A lower CASA share usually means a higher cost of funds, and our explainer on the CASA ratio covers why that matters for margins. The bank had 483 branches across 20 states and 2 union territories at quarter-end.
How the stock reacted
The press release was digitally signed at 3:48 pm on Friday, after trading had ended, so the day’s price move came before the numbers were public. DCB Bank shares closed at ₹201.95 on the BSE, down ₹4 or 1.94%, CNBC-TV18 reported. Monday’s session will be the first proper read on how the market takes the quarter.
We think the cleaner book is the real story here. Profit growth backed by falling bad loans is better quality than growth driven by one-off income. For a wider look at how lenders fared this season, see our coverage of Kotak Bank’s Q2 results and IDFC First Bank’s Q2 numbers.
Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.
Leave a Reply
Join the conversation
Commenting is open to registered readers. Sign up with just your email — no password needed, and it takes under a minute.
Sign up to comment Log in