'DCB Bank is a new generation private sector bank with widespread presence across India. It is a professionally managed and governed scheduled commercial bank. The bank has contemporary technology and infrastructure including state-of-the-art internet banking for personal as well as business banking customers.
The business segments are retail, micro-SME, SME, mid-corporate, agriculture, commodities, government, public sector, Indian and co-operative banks, and NBFCs. DCB Bank had 25 lakh customers, with 469 branches at end December 2025.
The business growth jumped to 19% at Rs 124354 crore end December 2025, from a year ago, with advances growing 18% to Rs 56600 crore. Deposits increased 20% to Rs 67754 crore, helping to reduce the credit-to-deposit ratio to 83.5%, from 84.3% at end December 2024.
The focus is on taking many digitization initiatives to improve overall efficiency. The cost-to-income ratio reduced to 61% in 9M FY2026 from 63.7% in FY2025 and 64% in FY2024. The target is to reduce the cost-to-income ratio below 60% in the near term. The operating expenses to total assets ratio dropped to 2.52% in 9MFY2026, from 2.64% in FY2025. The cost-to-average assets is expected to be maintained at 2.50-2.60%.
The Casa deposits increased 8% to Rs 15428 crore at end December 2025, from a year ago. The current account deposits moved up 3% to Rs 2314 crore, while saving account deposits increased 10% to Rs 13114 crore. The Casa ratio stood at 22.8% as compared with 23.5% at end September 2025. The deposit growth was driven by term deposits, surging 23% to Rs 52326 crore. The investment book increased 9% to Rs 19620 crore.
The cost of deposits declined 26 bps to 6.86%, while the yield on advances decreased 46 bps to 10.98%. The savings account rates have been reduced and rates on bulk and non-callable deposits cut to bring down the cost of deposits. As there is a high share of long-term term deposits, the deposit repricing is expected to be completed by Q2FY2027. Borrowings were lowered to Rs 4700 crore end December 2025, from Rs 8400 crore end March 2025. The replacement of borrowings with deposits will be positive for margins. The expansion of the NIMs should continue till Q1FY2026 and Q2FY2026, unless repo rate is cut by
the RBI.
The GNPA ratio declined to 2.72%, the lowest in 18 quarters. NNPAs, at 11%, are the lowest in 11 quarters. The slippage ratio stood at 3.08%, the lowest in 18 quarters. The provision coverage ratio improved to 75.35% at end December 2025 as compared with 74.15% a quarter ago and 74.76% a year ago. The credit costs were benign, at 0.37%, much below the minimum stated goal of 0.45%.
DCB Bank is well prepared for ECL transitioning. It has been creating provisions for the last two-three years. The target is to reduce NNPAs to below 1% as soon as possible.
NII was up 15% to Rs 624.67 crore and the NIMs stood at 3.27% in the quarter ended December 2025, an increase of two bps over the year and four bps over the quarter. Eventually, Pat was up 22% to Rs 184.74 crore. NII was up 16% to Rs 1801.32 crore and the Pat rose 20% to Rs 525.91 crore in 9MFY2026.
DCB Bank posted its highest quarterly profit of Rs 184.74 crore in Q3FY2026, with RoA of 0.91% and RoE of 12.73%. RoA would have been higher at 1.01% and RoE at 14.10% in the absence of the labor code provisions of Rs 26.87 crore. The bank is targeting to achieve 13.5% RoE in FY2027 and 14.5% RoE in FY2028. It aims to have fee income at 1% of the average assets.
We expect DCB Bank to register an EPS of Rs 22.6 in FY2026 and Rs 27.0 in FY2027. The adjusted BV is expected to rise to Rs 172.1 in FY2026 and Rs 197.0 in FY2027. The scrip closed at Rs 190.19 on the BSE on 23 February 2026.
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