Refinancing high-cost debt into low-cost debt is possible, thanks to the RBI's TLTROs
Yields on 10-year bonds slid as much as eight basis points to to 6.08 per cent after surging by as much as 12 basis points earlier.
DCB Bank's total income was up 13.66 per cent at Rs 990.89 crore during the quarter under review as against Rs 871.78 crore in the corresponding period a year ago
Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor
The private sector lender reported a sub-par performance in June quarter (Q1FY19) led by decline in loan growth, sequential rise in fresh slippages and NPAs, and continued pressure on margin.
Q4 net up 50%; NIM to compress for two quarters on raising further capital in Q4 FY20
The specific timing for capital offering will depend on market conditions
The stock dipped 11% to Rs 160 on the BSE in intra-day trade after net interest margin of the private sector lender declined 33 bps year on year (yoy) at 3.9% in June quarter.
DCB Bank Ltd today reported profit after tax of Rs 70 crore for the first quarter of the current fiscal. "The bank's profit after tax was at Rs 70 crore in Q1 FY 2019 as against Rs 65 crore in Q1 FY 2018," DCB said in a statement. The bank said its operating profit rose to Rs 141 crore during the June quarter from Rs 136 crore in the corresponding quarter of 2017-18. Managing Director & CEO of the bank Murali M. Natrajan said: "We have been able to achieve the envisaged growth from the branch expansion programme. Margins are under pressure especially in mortgage and corporate loan book. We continue to be watchful of NPAs.
The stock has moved 7.5% higher to Rs 205 on the BSE in intra-day trade on Tuesday, extending its Monday's 6.4% gain on back of heavy volumes.
These bonds carry an interest rate of 9.85% per annum for a period of 10 years from Jan 12, 2018
DCB Bank stock closed 0.65 per cent down at Rs 189.90 on BSE today
Habib Bank's promoter, AKFED Group, holds 15% stake in DCB Bank
Private sector lender DCB Bank has 290 branches across 18 states and two Union Territories
To concentrate on existing network of around 300 branches
Bank has set floor price of Rs 177.39 a share for so-called qualified institutional placement
The stock dipped 7% to Rs 168 after the bank reported 24% YoY drop in net profit in Q4FY17.
Thus far in 2017, the stock has outperformed the market by surging 52% against 9% rise in Sensex.
Natrajan said the bank had raised Rs 150 crore in tier-II bonds in November 2016
The city-based lender had reported a post tax profit of Rs 41 crore in the year-ago period