DCB Bank Q1 FY26: PAT ₹157 cr, NII ₹581 cr

Key takeaway from the June quarter

DCB Bank reported a Profit After Tax (PAT) of INR 157 crore for Q1 FY26 (quarter ended June 30, 2025), up from INR 131 crore in Q1 FY25. The bank’s Net Interest Income (NII) for Q1 FY26 stood at about INR 581 crore, while non-interest income was INR 236 crore. The results were approved by the Board of Directors at a meeting in Mumbai on July 31, 2025. The financials were declared unaudited and accompanied by limited review reports from the statutory auditors, Varma & Varma, Chartered Accountants and B S R & Co. LLP, Chartered Accountants.

The quarter also showed a higher provisioning line, which rose to INR 115 crore versus INR 67 crore in the previous quarter, based on the bank’s unaudited results table. Asset quality metrics improved year-on-year, with gross NPA at 2.98% as of June 30, 2025 compared with 3.33% as of June 30, 2024. On the market side, a PTI report said shares were trading at INR 135.70, down 4.40% over the previous close on the BSE.

Board approval and what the bank disclosed

DCB Bank said its Board approved the unaudited financial results for the quarter ended June 30, 2025 (Q1 FY26) at the July 31, 2025 meeting in Mumbai. The bank also flagged that capital adequacy remained strong, reporting a Capital Adequacy Ratio of 16.66% under Basel III norms as of June 30, 2025. Tier I capital was 14.20% and Tier II was 2.46%, as per the disclosure.

On business growth, DCB Bank reported advances growth of 21% year-on-year and deposits growth of 20% year-on-year for Q1 FY26. Within advances, it disclosed year-on-year growth of 17% in mortgages, 162% in co-lending, 34% in construction finance, and 12% in agri and inclusive banking. These segment growth rates were provided as part of the Q1 FY26 result announcement.

Q1 FY26 financial performance in numbers

The bank’s income and operating lines improved compared with the year-ago quarter, while provisions increased versus recent quarters. Interest income stood at INR 1,814 crore in Q1 FY26, up from INR 1,489 crore in Q1 FY25. Operating profit was INR 327 crore in Q1 FY26 compared with INR 205 crore in Q1 FY25, as per the unaudited results table.

A separate PTI report stated that total income rose to INR 2,050 crore in the June quarter of FY26 from INR 1,632 crore in the same quarter last fiscal. In the bank’s unaudited results table for Q1 FY26, total income is presented as INR 817 crore, alongside NII and non-interest income, indicating the data is being presented in different line formats across sources included in the provided material. This article retains each figure exactly as disclosed in its respective source.

Summary table: Q1 FY26 vs Q4 FY25 vs Q1 FY25

All figures are in INR crore.

Asset quality, provisions and coverage ratios

As of June 30, 2025, DCB Bank reported gross NPA at 2.98% and net NPA at 1.22%. The Provision Coverage Ratio (PCR) was 74.04%, and PCR excluding gold loan NPAs was 75.00%. In the quarterly P&L, provisions (other than tax) increased to INR 115 crore in Q1 FY26, compared with INR 67 crore in Q4 FY25 and INR 28 crore in Q1 FY25.

The material provided also lists certain concerns highlighted alongside the results. It notes that the slippage ratio rose due to increased slippages in microfinance institutions (MFI) and unsecured demand assets (DA), along with unforeseen slippages in small-ticket secured DAs. It also states that the PCR decreased by 3% influenced by technical write-offs, and that CASA ratio fell to 23%.

Balance sheet, branch network and profitability ratios

A separate “growth path” snapshot as of June 30, 2025 reported a branch network of 465 branches across India. It put balance sheet size at INR 77,395 crore, total deposits at INR 62,039 crore, and net advances at INR 51,215 crore. The same snapshot reported a CASA ratio of 23.32% and a net NPA ratio of 1.22%.

Profitability ratios disclosed in that snapshot included Return on Assets (ROA) of 0.81% for Q1 FY26 and Return on Equity (ROE) of 11.56% for Q1 FY26. These figures were presented as part of the bank’s June 30, 2025 update.

Context from recent quarters: Q3 FY26 and earlier growth

For Q3 FY26, DCB Bank reported PAT of INR 185 crore compared with INR 151 crore in Q3 FY25, a growth of 22%. It also disclosed advances growth of 18% year-on-year and deposits growth of 20% year-on-year. As of December 31, 2025, it reported gross NPA at 2.72% and net NPA at 1.10%, while PCR stood at 75.35% (and 76.06% excluding gold loan NPAs). Capital adequacy as of December 31, 2025 was reported at 15.84% with Tier I at 13.45% and Tier II at 2.39%.

The provided material also includes historical PAT disclosures, including annual PAT for FY 2024 of INR 536 crore, up 15% from INR 466 crore in FY23. It also notes PAT for Q1 FY24 at INR 127 crore versus INR 97 crore in Q1 FY23, a growth of 31%.

Market impact and what investors tracked

The PTI update included a near-term market reaction: DCB Bank shares were quoted at INR 135.70, down 4.40% over the previous close on the BSE at the time of the report. For investors tracking the quarter, the key moving parts in the disclosed numbers were the year-on-year profit growth, the rise in operating profit to INR 327 crore, and the higher provisions in Q1 FY26.

The bank’s disclosures also pointed to operating revenue rising by 28% and operating costs increasing by 13%, as stated in the provided material. It added that the bank lowered its cost of funds and deposits despite three interest rate reductions totaling 100 basis points, according to the same text. Separately, the material listed sequential decline in fee income and higher employee costs despite a lower workforce as issues to watch.

What to watch next: July 24, 2026 board meeting

DCB Bank informed the BSE that a Board meeting is scheduled on July 24, 2026 to consider and approve the unaudited financial results for the quarter ended June 30, 2026. This scheduled meeting is the next dated event mentioned in the provided material.

Conclusion

DCB Bank’s Q1 FY26 print showed PAT of INR 157 crore, higher NII at about INR 581 crore, and improved year-on-year gross NPA at 2.98% as of June 30, 2025. The quarter also saw a sharp sequential rise in provisions to INR 115 crore, while capital adequacy remained at 16.66% under Basel III norms. The next key milestone disclosed is the Board meeting on July 24, 2026 to consider results for the quarter ended June 30, 2026.