Development Credit Bk Apr-Jun net down on provisions

MUMBAI, July 30 (Reuters) - Private sector lender Development Credit Bank (DCBA.BO: Quote, Profile, Research) has posted a 5 percent drop in its April-June net profit due to higher provisioning on its bad loans and on its securities portfolio, a top official said.

The bank has posted a net profit of 54.4 million rupees as compared to 57.4 million rupees a year earlier.

"We've made a mark-to-market (MTM) provisioning of 45 million rupees on our securities portfolio and our NPA (non-performing assets) provisioning has also gone up," Managing Director and Chief Executive Officer, Gautam Vir told Reuters.

The bank has made a mark-to-market provision of 45 million rupees on its securities portfolio, which is worth 20 billion rupees, he said.

It has made provisions worth 160 million rupees towards NPAs as compared to 50 million rupees during the same period of the previous fiscal, Vir said.

The net NPA to net advances of the bank was 1.5 percent for the quarter as compared to 1.6 percent during the same period of the previous fiscal although it has gone up from 0.8 percent posted during the Jan-March quarter, he said.

"The provisions are higher as the net NPA has gone up sequentially," he said.

Shares in the bank were trading 3.88 percent higher at 52.25 rupees in a firm Mumbai market.

(Reporting by Kaustav Roy; Editing by Ramya Venugopal)