Shares of DCB Bank Ltd. gained as much as 13.5% on Monday, October 20, in response to its September quarter results. This is the biggest single-day gain for the stock since April 2022.
The company reported a 17% growth in its core Net Interest Income (NII) to ₹596 crore from ₹509 crore it reported during the same quarter last year.
Net profit for the period increased by 19% from last year to ₹184 crore, while provisions nearly halved on a sequential basis.
The key reasons behind the surge in stock price were two important factors. Credit Costs during the quarter declined sharply during the quarter, to 0.31% from 0.59% during the June quarter. The bank was projecting credit costs to be between 45 to 55 basis points.
Net Interest Margins (NIMs) during the quarter expanded by 3 basis poin