DEVELOPMENT CREDIT BANK = Q4 AND FY 2011 RESULTS = REVIEW = A BANK ON THE UPWARD CURVE = GOOD PROGRESS

Development Credit Bank Limited

NSE Symbol DCB

Development Credit bank Ltd has declared its Q4 FY 11 results And FY2011 results. The results are quite heartening.

Interest on Advances in Q4 is Rs.112.71ct – up by 7.63% from Q3; up by 18.41% from Q2 : up by 25.16% from Q1 ; and up by 29.24% from Q4 of FY 10.

Income on Investments is Rs.35.40 cr – up by 1.65% from Q3 FY 11; up by 9.54% from Q2 ; up by 20.28% from Q1 and up by 32.21% from Q4 of FY 10.

Total Income in Q4 is Rs.177.48 cr – up by 6.77% from Q3l up by 14.67% from Q2; up by 18.42% from Q1 ; and up by 27.76% from Q4 FY 10.

NII has also registered good improvement at rs.50.19 cr – up by 1.78% from Q3; by 8.18% from Q2 ; by 16.02% from Q1; and by 17.81% from Q4 of FY 10.

Operating Profit is Rs.22 cr which has also registered similar improvement in each quarter.

Provisions amount to Rs.8.04 cr – compared to Rs.9.38cr in Q3; Rs.14.94cr in Q2; Rs.24.45cr in Q1; and Rs.24.03 cr in Q4 of FY 10. Thus, provisions has declined considerably in Q4.

Profit before tax is Rs.13.96 cr – against Rs.11.27 cr in Q3; Rs.5.88 cr in Q2; Rs.(-)1.86 cr in Q1; Rs.(-) 4.85 cr in Q4 FY 10.

Net Profit is Rs.11.35 cr – against Rs.8.17 cr in Q3; Rs.4.82 cr in Q2; Rs(-)2.91 cr in Q1; and Rs(-)8.16 Cr in Q4 FY 10.In percentage terms Q4 profit is higher by 38.89% from Q3; 135.4% from Q2; about 490.38% from Q1 and 239.12% from Q4 of FY 10.

Capital Adequacy Ratio is quite reasonable at 13.25 – against 13.39% in Q3; 13.57% in Q2; 13.8% in Q1; and 15.36% in Q4 of FY 10.

Basic EPS against a face Value of Rs.10, is Rs.0.57 in Q4 FY 11; Rs.0.41 in Q3; Rs.0.24 in Q1.

% of Gross/Net NPA is 0.97 in Q4 FY 11; 1.3 in Q3 Fy 11; 1.86 in Q2; 2.53 in Q1; and 3.11% in Q4 FY 10.

Return on Assets is increasing gradually and is now at 0.63, compared to 0.47 in Q3; 0.29 in Q1.

Thus, Q4 results reflect very good progress on previous quareters.

QUAERTERLY RESULTS TABLE :

D C B	31-Mar-11	31-Dec-10	30-Sep-10	30-Jun-10	31-Mar-10
Interest on Advances	11270.69	10471.45	9518.13	9005.06	8720.41
Interest on Advances	11270.69	7.63	18.41	25.16	29.24
Income on Investments	3539.94	3482.58	3231.62	2943	2677.51
Income on Investments	3539.94	1.65	9.54	20.28	32.21
Income on Balances With RBI	12.13	67.86	38.15	45.66	34.84
Interest Earned	14822.76	14021.89	12787.9	11993.72	11432.76
Other Income	2925.47	2601.42	2689.79	2993.18	2459.41
Total Income	17748.23	16623.31	15477.69	14986.9	13892.17
Total Income	17748.23	6.77	14.67	18.42	27.76
Interest Expended	9804.15	9091.19	8148.88	7668.2	7172.8
NII	5018.61	4930.7	4639.02	4325.52	4259.96
NII	5018.61	1.78	8.18	16.02	17.81
Employees Cost	2920.66	2731.89	2500.34	2483.66	1924.18
Other Oprtng Expenses	2823.67	2735.72	2746.56	2575.54	2877.39
Operatng Expenses	5744.33	5467.61	5246.9	5059.2	4801.57
Operating Profit	2199.75	2064.51	2081.91	2259.5	1917.8
Operating Profit	2199.75	6.55	5.66	-2.64	14.7
Provisions	803.78	937.58	1493.82	2445.15	2403
Profit before tax	1395.97	1126.93	588.09	-185.65	-485.2
Profit before tax	1395.97	23.87	137.37	851.94	387.71
Tax Expense	261.34	310	106.09	105	330.36
Net Profit	1134.63	816.93	482	-290.65	-815.56
Net Profit	1134.63	38.89	135.4	490.38	239.12
Face Value (in Rs.)	10	10	10	10	10
Paid-up Equity	20017.12	20016.1	20007.62	20006.78	19998.52
Capital Adequacy Ratio	13.25	13.39	13.57	13.8	15.36
Basic EPS	0.57	0.41	0.24	-0.15	-0.41
Diluted EPS	0.56	0.4	0.24	-0.15	-0.41
Gross/Net NPA	4123	5150	7139	8784	10762
% of Gross/Net NPA	0.97	1.3	1.86	2.53	3.11
Return on Assets	0.63	0.47	0.29	-0.19	-0.55
Public Holding (%)	76.92	76.92	76.91	76.91	76.9

The annual results for FY 11 are given below along with FY 2010 and FY 2009 results. While income reflects progress over FY 2010, there is not much progress over FY 2009.

Operating Profit is however good at Rs.86.06 cr – against rs.48.27 cr in FY 2010 and Rs.75.34 cr in FY 09- reflecting good progress.

Based on lesser provisions, the PBT has risen smartly to Rs. 29.25 cr. Net profit is r1.43 cr against losses in previous 2 years.

Basic EPS is positive at 1.07 and can be expected to register smart increase in coming quarters. Its current market price is Rs.57, but, based on current rate of progress and future outlook, the Bank is likely to prove to be a good buy.

DCB  is a Bank on the upward curve now.

D C B	FY 2011	FY 2010	FY 2009
Interest on Advances/Bills	40265.31	35988.65	49459.06
Income on Investments	13197.06	9508.99	12593.27
Interest on Balances With RBI	163.87	442.79	2468.19
Others	-	-	-
Interest Earned	53626.24	45940.43	64520.52
Other Income	11209.86	10708.8	12011.96
Total Income	64836.1	56649.23	76532.48
Interest Expended	34712.41	31742	44795.11
Employees cost	10636.55	8805.29	10442.39
Other Operating Expenses	10881.5	11275.24	13761.27
Operating Expenses	21518.05	20080.53	24203.66
Operating Profit	8605.64	4826.7	7533.71
Provisions	5680.3	12100.48	16193.71
Profit before tax	2925.34	-7273.78	-8660
Tax Expense	782.43	571.23	149.55
Net Profit	2142.91	-7845.01	-8809.55
Dividend (%)	-	-	-
Face Value (in Rs.)	10	10	10
Paid-up Equity	20017.12	19998.52	17429.89
Reserves	36235.26	34034.37	36155.49
Capital Adequacy Ratio	13.25	15.36	13.44
Basic EPS (in Rs.)	1.07	-4.25	-5.05
Diluted EPS (in Rs.)	1.06	-4.25	-5.05
% of Gross/Net NPA	0.97	3.11	3.88
Return on Assets	0.32	-1.3	-1.48
Public Shareholding (%)	76.92	76.9	73.49

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