• Loan growth trajectory: DCB Bank expects sustained balance sheet growth of 18% to 20%, driven by its secured, small-ticket lending approach. Gross and net NPA ratios are at seven-year lows, with slippage ratios declining from 3.09% to 2.28%.
• Profitability and credit costs: Management has guided for an ROE exceeding 13.5% in FY27 and reaching over 14.5% in FY28, following an 11-year high of 12.77% in the past year. Credit costs are projected to remain well below the 45 basis points threshold after closing the quarter at 0.32 basis points.
• Margin and deposits: Net interest margins expanded to 3.39% from a previous low of 3.20%, supported by a 5 basis point drop in cost of funds while asset yields held flat at 10.98%. The bank is prioritizing reduction in cost of deposits and targeting current account expansion to improve margins further.
• Capital raising plans: With an enabling resolution for ₹1,500 crore in place, the bank intends to raise around $100 million (₹1,000+ crore) toward the end of Q2 or the beginning of Q3 to support growth.