Motilal Oswal Recommends 'BUY' on DCB Bank with INR 220 Target

• DCB Bank reported 22% YoY PAT growth to INR 1.85 billion in 3QFY26, driven by higher other income.
• Net Interest Income (NII) grew 15.1% YoY to INR 6.2 billion, with NIM expanding 4bp QoQ to 3.27%.
• Operating expenses increased 14.8% YoY due to INR 268.7 million labor cost recognition.
• Healthy business growth: advances up 18.5% YoY to INR 566 billion, deposits up 19.5% YoY to INR 677 billion.
• Motilal Oswal increased earnings estimates for DCB Bank by 4-5% for FY27/28, reiterating a 'BUY' rating.

Why It Matters: Motilal Oswal recommends buying DCB Bank, setting a target price of INR 220 due to strong growth and revised earnings.