DCB Bank Limited has released the transcript of its Earnings Conference Call held on January 23, 2026, concerning the Unaudited Financial Results for the third quarter and nine months ended December 31, 2025. The call featured insights from MD & CEO Praveen Kutty, Whole-Time Director Sridhar Seshadri, CFO Ravi Kumar, and Chief Investor Relations Officer Ajit Kumar Singh. Praveen Kutty highlighted strong year-on-year growth in customer advances (18.46%) and customer deposits (19.54%). Despite a one-time impact of ₹26.87 crore due to the new labor code, profit after tax grew by 22%. The Net Interest Margin (NIM) stood at 3.27%, with a reduced cost of deposit at 6.86% (down 10 basis points). Core fee income was robust at ₹182 crore, driven by third-party distribution, trade finance, and processing fees. Cost to income ratio was 61.84%. The bank reported improved asset quality with credit costs at 0.37%. Slippage ratio was the lowest in 18 quarters at 3.08%, Gross NPA at 2.72% (lowest in 18 quarters), and Net NPA at 1.1% (lowest in 11 quarters). The bank achieved its highest ever quarterly profit of ₹184.74 crore, with ROA of 0.91% and ROE of 12.73%. Without the one-off regulatory expense, PAT would have been ₹205 crore, ROA 1.01%, and ROE 14.10%. Future guidance remains confident with an expected 18% to 20% year-on-year growth and ROE of 13.5% for FY27 and 14.5% for FY28. Management discussed NIM expansion drivers, including deposit repricing and reduced borrowings, and the impact of the 25 basis point repo rate cut. The bank is focusing on growing its Business Loan (BL) portfolio over Home Loans (HL) and aims to bring Net NPA below 1%. The SME segment is in an embryonic stage with team building underway. The bank is also strategizing to build trade finance volume and enhance its fee book.
