ROE >13.5% for FY27
Bank met this guidance in Q4 FY26 and repeated in Q1 FY27 with 13.61% ROE. Management remains confident of sustaining this through the year through continued NIM expansion and cost discipline.
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DCB Bank · forward-looking guidance across the available source record.
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Guidance tracker
What management said would happen.
growth
NIM to increase in Q2 and beyond
Cost of deposits declined 14bps sequentially in Q1; management expects continued repricing benefits, higher-yield mortgage mix improvement, and product rebalancing to drive NIM expansion going forward.
Cost-to-average assets below 2.5%
Already at 2.42% in Q1 despite salary increases being loaded in this quarter. Guidance maintained for full year; some efficiency gains may be offset by planned headcount increase to ~13,000.
MSME momentum to improve from Q2
Focus on current account traction, MSME overdraft facilities, and trade finance with higher-quality people and new sector expansions. Management expects output to start showing from Q2 and clearly in Q3.
Loan growth of 18-20% YoY
Management reiterated guidance of 18-20% annual loan growth, supported by strong demand in business loans and improving mortgage pipeline.
ROE of 13.5% for FY27 and 14.5% for FY28
Medium-term ROE targets remain unchanged, with confidence in achieving them through margin expansion, fee growth, and cost control.
Co-lending book to grow in line with total book from FY27
Co-lending book will be capped at 15% of total assets and will grow at the same rate as the overall loan book (18-20%) from next year.
Branch network to reach ~500 by end of next fiscal
Bank plans to add branches to reach approximately 500 branches, while continuing to improve efficiency through digitization.
NIM improvement to continue through Q2 FY27
Deposit repricing benefits expected to flow until late Q2 or early Q3, supporting NIM.
Credit cost to remain below 45 bps
Management reiterated guidance of credit cost below 45 bps for FY27, with current run-rate at 40 bps.
Employee headcount to reach ~13,000 by FY27 end
Net addition of ~1,500 employees, primarily in liability and distribution roles.
Capital raise in late Q2 or early Q3 FY27
Bank plans to raise equity (likely ~$100M) to support growth, with enabling resolution for ₹1,500 cr.