• Advances growth trajectory: Following a 16% YoY profit surge and 18% YoY advance growth in Q4, DCB Bank expects to sustain loan growth within the 18% to 20% range going forward.
• Deposit cost dynamics: Total liabilities grew 20.91% YoY in Q4 with cost of funds falling by 4 bps and cost of deposits declining by 2 bps. The bank is focusing on granular, long-term funding and reviving flat current accounts to reduce costs further.
• Net interest margin: NIM expanded to 3.4%, supported by a steady yield on advances at 10.98% despite a 25 bps repo rate cut, as well as recoveries reaching 109% of fresh slippages.
• Asset quality metrics: Gross NPA stayed below 2.5% and Net NPA fell to a seven-year low of 0.89%, while the slippage ratio declined from 3.09% to 2.28% due to improved underwriting and larger ticket sizes.
• Collections strategy shift: The bank has restructured its collections framework from 90-day NPA management to a proactive 1-day past due (1 DPD) mindset to curb early delinquencies.