DCB Bank Limited — Q3 FY26
DCB Bank delivered a strong Q3 FY26 with PAT of ₹184.74 crore (+22% YoY), its highest ever, despite a one-time labor code impact of ₹26.87 crore.
bullish
high
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
46%Questions answered5Evaded / deflected12Questions audited
Partial answer
High priority
What drove 15% QoQ fee income growth and is it sustainable?
Asked by Akit Agraal, Smith's Institutional Research
Management gave qualitative drivers but no quantitative breakdown of fee income components.
no specific breakdown of fee componentsqualitative only
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Question
my first question is on uh free income momentum which was very strong at 15% Q. So if you can provide some insights uh what's driving this is it all course and do we think we can sustain this level of momentum?
Management (unidentified)
Um mostly the core the core fee income has come from a very decent third party distribution fee income which we got uh the asset growth has been good. So the processing fee by definition looks looks very good.
Evasive
High priority
How much of NIM expansion was from tax refund and outlook?
Asked by Akit Agraal, Smith's Institutional Research
Analyst asked for tax refund impact specifically; management avoided giving a number and discussed other factors.
did not quantify tax refund impactreframed to general NIM drivers
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Question
how much of name expansion was related to tax refund? Was it two bits and how should we think about the expansion from here...
Management (unidentified)
Um okay let's go one by one on this uh BL continues to be uh a large share even more than 60% of the incremental sourcing... The full impact of CRR is not boxed in yet... The full impact of the 25 basis point repo cut has also not been boxed in...
Answered
High priority
Are the 73 cr floating provisions for ECL implementation?
Asked by Akit Agraal, Smith's Institutional Research
Management clearly stated provisions are not for ECL and explained asset quality focus.
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Question
roughly like 73 million floating provisions were added this quarter. So is it all for the expected ECL implementation and what kind of recurring impact are we likely to see
Management (unidentified)
we are doing all that it takes to ensure that net NPA comes down to 1% or below... it's not meant for ECL it's just that you know You see our uh our recoveries and upgrades as a percentage of our fresh flow it is 86%.
Partial answer
High priority
When will cost of funds fall faster than yield on advances?
Asked by Adita, Securities Investment Management
Management discussed cost of deposit but did not directly answer when cost of funds would fall faster than yields.
no specific timeline givenfocused on cost of deposit rather than cost of funds
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Question
when do you see you know cost of funds falling at a you know faster rate than the yield or advances?
Management (unidentified)
So uh I want you to look at the cood cost deposit on a base of almost 65,000 crores. Okay. on a 65,000 cr base you're dropping 10 bips... the momentum which we'll get will be from continued cost deposit coming down
Answered
Medium priority
Is the bulk deposit growth this quarter a one-off?
Asked by Adita, Securities Investment Management
Management directly stated the retail-to-bulk ratio is unchanged and not a one-off.
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Question
a large part of growth has come from bul deposits. Uh so should one consider this as a one-off or considering the rate reduction we have done in the on the deposit side there has been some impact on garnering retail deposits.
Management (unidentified)
You would see that our uh ratio of uh retail to bulk remains the same at the portfolio level and and there is no reason to believe that it'll be it'll be any different.
Answered
Medium priority
What is the 'others' under advances book that grew strongly?
Asked by Adita, Securities Investment Management
Management provided the size and composition of the 'others' book.
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Question
there is this others under advances book which have grown strongly this quarter. Uh so what is this book?
Management (unidentified)
It's a 2,000 cr book. Uh it is not it's not it's not a large book. It's a 2,000 cr book. One second. Which is a mix of all all things... the largest component here will be about a 600 700 cr of uh loan against term deposit.
Answered
Medium priority
Why did RWA jump 890 bps QoQ?
Asked by Suraj Dut, Sundara Mutual Fund
Management clarified RWA growth is in line with asset growth, not a mix shift.
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Question
on the RWA it has jumped almost 890 basis point Q. Just wanted to check if this is a function of the loan mix or there are anything else.
Management (unidentified)
So uh as I just checked this out uh the RWA moment is 5% which is similar to the the overall growth of the of the book. So it has grown in similar terms to the to the to the asset growth the QQQ asset growth.
Partial answer
High priority
Would ROA be ~1% excluding one-off staff cost provision?
Asked by J Mundra, ICSA securities
Management agreed in spirit but avoided confirming the exact 1% ROA figure for this quarter.
did not confirm the exact ROA numberdeferred to future quarters
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Question
If I remove uh this this oneoff staff cost provision then the ROA would have been around one more than one around 1% right 1.01 101 right so I mean what you had said in the strategy meeting that you know we are very much um on that u 1% mark so except for this oneoff we would have been there right
Management (unidentified)
it looks reasonably fair but I I don't want to comment on a quarter four as much as yeah that over the next few quarters that that's exactly the way we see it.
Evasive
Medium priority
What is the blended savings rate cost and its trend?
Asked by J Mundra, ICSA securities
Management explicitly declined to reveal the blended savings rate and pointed to cost of deposit instead.
refused to give blended savings rateredirected to cost of deposit
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Question
do you have the blended number of let's say what is the blended savings rate cost for us and maybe how that has behaved uh versus last quarter or maybe last two three quarters
Management (unidentified)
there is one one way I can answer that without having to reveal more than I need to which is kindly look at the cost of fund reduction Q1 to Q3... cost of deposit moved from 6 712 to 696. That's a 16 basis point reduction.
Evasive
High priority
What is the timeline for capital raising?
Asked by J Mundra, ICSA securities
Management did not provide a concrete timeline or amount for capital raising.
no specific timeline givenvague on amount and timing
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Question
on your uh uh capital raising I mean any any sort of a timeline or uh that that I mean you just had this $10 million uh infusion but from uh uh capital uh perspective. Do you have any timeline in mind?
Management (unidentified)
We have both a timeline is a timeline based as well as event based. Uh we we are pretty much clear uh of how much we want to take and at what what rate we want to take it. So uh so right now there is no urgency for for for capital
Evasive
High priority
Will the bank hit 14% ROE guidance for this year?
Asked by Kushwan Pava, KPAC
Management sidestepped the question by stating no guidance was given for the current year.
denied giving current year guidancereframed to multi-year targets
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Question
where do you see you know closing this year particularly given the fact that you know a lot in Q4 code is dependent on the fee income are we likely to hit our targets for this year or uh we're likely to fall short so uh I want to clarify the guidance
Management (unidentified)
the guidance given was 13.5% ROE for 2627 and 14.5% ROE for 2728 uh we haven't necessarily given our guidance for this current year
Evasive
High priority
Is 1% ROA now the baseline for coming quarters?
Asked by Nitarval, Motilwal
Management avoided confirming 1% ROA as baseline and instead reiterated ROE guidance.
did not confirm 1% ROA baselineredirected to ROE guidance
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Question
can I take that 1% ROA is now kind of a baseline ROA for the coming quarters or do you see any risk to that?
Management (unidentified)
See since the guidance of 13.5 is given we would like to stick with the 13.5 guidance for the next year and 14.5 the year after... it's okay to be a bit conservative in terms of uh estimation