DCB Bank’s disastrous June quarter performance was enough to jolt investors and pull its stock down a massive 17% on Wednesday. A handful of corporate loans turned sour, farm loans came under increased stress and the stretched troubles of the real estate sector left a mark on the loan book. As a result, DCB Bank’s asset quality metrics took a knock, with gross bad loans rising to 1.96% of the book. Its developer finance book is causing it a lot of heartburn and DCB Bank wants to be cautious in lending now. Analysts noted that along with a weak liability profile, DCB Bank’s performance doesn't match up to its valuations.

Source: Mint July 17, 2019 09:33 UTC