For the FY2020-21, the financial institution’s web revenue remained practically flat at Rs 336 crore in opposition to Rs 338 crore in FY20. Earnings additionally was a tad down at Rs 3,917 crore in FY21 in opposition to Rs 3,928 crore in FY20.
The financial institution’s asset high quality worsened with the gross non-performing belongings (NPAs) spiking to 4.09 per cent of the gross advances as of March 31, 2021, as in opposition to 2.46 per cent by the top of March final 12 months.
In worth phrases, the gross NPAs stood at Rs 1,083.44 crore, considerably larger than Rs 631.51 crore within the year-ago interval.
Provisions for unhealthy loans and contingencies in Q4FY21 got here all the way down to Rs 101.18 crore from Rs 118.24 crore a 12 months earlier. Internet NPAs stood at 2.29 per cent (Rs 594.15 crore) as in opposition to 1.16 per cent (Rs 293.51 crore).
On returning the compound curiosity to eligible debtors publish the Supreme Courtroom closing order in March and subsequent the RBI notification, the lender stated it’s within the technique of account by account calculation of curiosity aid because of the eligible prospects.
Within the meantime, as of March 31, 2021, the financial institution has created legal responsibility in the direction of estimated curiosity aid of Rs 10 crore and decreased the identical from the curiosity revenue.
The financial institution stated it held contingency provision of Rs 229.11 crore in opposition to the doubtless affect of Covid 19 regulatory package deal, affect of the conclusion of the interim order (of Supreme Courtroom on not declaring accounts as NPAs until August 31, 2020 and after) and different contingencies.
On the affect of second wave of the pandemic, it stated below the present circumstances the financial institution throughout March quarter, on a prudent foundation, has made a contingency provision of Rs 124 crore in the direction of additional doubtless affect of Covid-19 on restructured and confused belongings.
“Along with this contingency provision of Rs 124 crore, the financial institution additionally holds floating provision amounting to Rs 108.80 crore, moreover, provisions for traditional belongings and particular non-performing belongings,” it stated.
Apart from, the quantity in overdue classes the place the moratorium or deferment was prolonged as of March 31, 2020 was Rs 1,908.08 crore at finish of March this 12 months, it stated. The provisions held on these by the top of September 2020 was Rs 68 crore and comparable quantity was stored as provisions adjusted in opposition to slippages (NPA and restructuring), DCB Financial institution stated.
The lender additionally stated that its board has not beneficial any dividend for fiscal ended March 2021 in view of the state of affairs creating round Covid-19 within the nation and the associated uncertainty that it creates.