DCB Bank Soars 8% as Robust Q1 Earnings, Lower NPAs and Reduced Provisions Lift Investor Sentiment

DCB Bank shares surged nearly 8% in early trade on Monday after the private lender reported a strong set of earnings for the June quarter, driven by healthy profit growth, robust net interest income and continued improvement in asset quality. The stock climbed 7.82% to ₹200.65 on the BSE at around 9:19 AM, emerging as one of the top gainers in the banking pack. For the quarter ended June 2026, DCB Bank's net profit jumped 35.6% year-on-year to ₹213.2 crore, supported by a 17.8% rise in Net Interest Income (NII) to ₹684 crore, reflecting steady growth in its core lending business. The bank also strengthened its balance sheet with improving asset quality. Gross Non-Performing Assets (GNPA) eased to 2.43% from 2.45%, while Net NPA declined to 0.84% from 0.89% on a sequential basis. Additionally, provisions fell sharply to ₹57.1 crore from ₹115.1 crore in the year-ago period, indicating lower credit costs and improving loan quality. Brokerage firm Motilal Oswal maintained its 'Buy' rating on the stock with a target price of ₹235. The brokerage said DCB Bank delivered an in-line quarter, with net interest income and profit broadly meeting expectations. While net interest margin (NIM) witnessed a marginal sequential contraction of 4 basis points, the brokerage expects margins to improve going forward as the bank's asset mix evolves. It has also largely retained its FY27 estimates, projecting a Return on Assets (RoA) of 1.03% and Return on Equity (RoE) of 15.2%. The strong earnings performance, lower provisioning requirements, improving asset quality and positive brokerage outlook fueled buying interest in the counter, driving the stock sharply higher in early trading.