DCB Bank earnings rose in the second quarter of fiscal 2027, with profit after tax increasing 29% year over year as advances and deposits grew. Net interest margin narrowed from the previous quarter.

DCB Bank earnings and lending growth

Advances rose 21% year over year to ₹64,127 crore, while deposits increased 19% to ₹76,839 crore. Net interest income grew 17% to ₹699 crore, and other income rose 34% to ₹249 crore.

Net interest margin fell 10 basis points quarter over quarter to 3.25%, with pressure linked to foreign-currency non-resident deposits. The cost-to-income ratio improved to 59.64%, its lowest level in 18 quarters.

Asset quality and management outlook

The gross non-performing asset ratio fell to 2.29% and the net ratio declined to 0.73%, both 23-quarter lows. Fresh slippages were ₹437 crore, with recoveries and upgrades covering 97% of that amount.

Management retained growth guidance of 18% to 20% and expects net interest margin to improve in the third and fourth quarters. In a note published October 26, 2026, IDBI Capital maintained its buy rating on the stock with a ₹233 price target.

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