Monday, 16 January 2017

Demonetisation low point past us, stability on cards

On the back of a strong showing in the third quarter, Murali Natrajan, Managing Director and Chief Executive Officer of private sector lender DCB Bank Ltd , told that the “low point is past us” with respect to the impact of demonetisation and that stability on the cards. DCB Bank reported at 25 percent surge in December quarter net at Rs 51 crore, driven primarily by a surge in the core interest income. Its net interest income rose 31 percent to Rs 209 crore, while the non-interest income was up 36 crore to Rs 64 crore during the reporting quarter. 

Natrajan said the lender’s CASA growth, which he termed as the “toughest to crack”, had jumped 400 basis points in the quarter ending December, giving it 6-9 months head start. The share of low-cost current and savings account balances increased to 25.85 percent as on December 31, from the 21.91 percent three months ago, on the back of a surge in deposits following the move to scrap Rs 500 and Rs 1,000 notes by the Central government.

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