DCB Bank Limited · NSE:DCBBANK

DCB Bank — Development Credit Bank — Q3 FY10 Earnings Presentation

26 slides from DCB Bank's earnings presentation, February 2010

  1. Slide 1: Development Credit Bank Limited Investor Presentation – Q3 FY10

    Development Credit Bank Limited Investor Presentation – Q3 FY10 February 2010 Private & Confidential © Copyright IBM Corporation 2008

  2. Slide 2: Development Credit Bank Ltd. – In India since 1930's

    Development Credit Bank Ltd. – In India since 1930’s ƒ Development Credit Bank Ltd. (DCB) http://www.dcbl.com is a modern emerging new generation private sector bank. It is a scheduled commercial bank regulated by the Reserve Bank of India. It is professionally managed and governed ƒ In India since

  3. Slide 3: DCB at a Glance

    DCB at a Glance ƒ DCB has contemporary technology and infrastructure including state of the art internet banking for personal as well as business banking customers ƒ DCB’s business segments are Retail, micro-SMEs, large SMEs, mid-Corporate, MFIs, Agriculture, Commodities, Government, Public Sector,

  4. Slide 4: Our Vision

    Our Vision To be the most innovative and responsive neighbourhood community Bank in India serving entrepreneurs, individuals and businesses. Private & Confidential © Copyright IBM Corporation 2008 4

  5. Slide 5: Our Values

    Our Values Treat Everyone with Dignity Respect Do What is Right Ethical Be Open & Transparent Fair Sense of Urgency, Passion & Energy Dynamic Go the Extra Mile, Find Solutions Stretch Improve Continuously Excellence Play as a Team, to Win Team Work Support the Society Contribute Private & Confidenti

  6. Slide 6: 80 Branches in 28 Cities, Strong Presence in Western Region

    80 Branches in 28 Cities, Strong Presence in Western Region Branches 80 GOA ANDHRA PRADESH ƒ Mapusa (1) ƒ Hyderabad (8) DCB ATMs 110 ƒ Margao (1) ƒ Warangal (2) *Network 35,000 + ƒ Panaji (1) ƒ Vasco – Da – Gama (1) HARYANA ƒ Gurgaon (1) GUJARAT ƒ Ahmedabad (4) KARNATAKA ƒ Ankleshwar (1) ƒ Bengaluru

  7. Slide 7: DCB Offers Wide Range of Products – Retail Banking

    DCB Offers Wide Range of Products Retail Banking Deposit Products: Loans: ƒ Current and Savings ƒ Auto Loans* ƒ Term Deposits ƒ Commercial Vehicle* ƒ NRI Deposits ƒ Construction Equipment* ƒ Corporate Salary ƒ Gold Loans ƒ POS Terminals ƒ Home Loans ƒ Lockers ƒ Loan Against Property ƒ Loan Against S

  8. Slide 8: DCB Offers Wide Range of Products – SME, Corporate, Treasury

    DCB Offers Wide Range of Products SME, Corporate Banking, MFIs, Treasury NBFCs and Co-operative Banks ƒ Current Account ƒ Statutory Reserves Management ƒ Trade Current Account ƒ Liquidity Management ƒ Working Capital ƒ Trading in Government Securities ƒ Term Loans ƒ Foreign Exchange ƒ Supply Chain ƒ

  9. Slide 9: DCB has Innovative and Unique Offers

    DCB has Innovative and Unique Offers ƒ Free “Any Branch Banking” for DCB Privilege Banking customers ƒ Free Inward and Outward RTGS for Current Accounts and Saving Accounts ƒ Free Inward and Outward NEFT for Current Accounts and Saving Accounts ƒ Free unlimited usage of VISA network ATMs for DCB cus

  10. Slide 10: Share Holding Pattern

    Share Holding Pattern Share Capital (as on December 31, 2009) Rs. 199.9 Cr. Shareholder’s Equity (as on December 31, 2009) Rs. 607.3 Cr. Book Value Per Share (as on December 31, 2009) Rs. 27.43 Share Price (as on January 31, 2010) Rs. 35.95 per share Market Capital approximately (as on January 31, 2

  11. Slide 11: Q3 FY10 – Highlights

    Q3 FY10 – Highlights ƒ Retail Deposits (Retail CASA + Retail Term) continued to grow, stands at 83.9% of Total Deposits ƒ CASA book grew by 3% for the quarter and 19% for the nine months ended December 31, 2009. CASA ratio at 38.1% ƒ Asset growth was strong for the last quarter. Net Advances increas

  12. Slide 12: Financials

    Financials Profit & Loss 2009-10 (Rs. in Cr.) FY 09 Q1 FY10 Q2 FY10 Q3 FY10 YTD FY 10 Net Interest Income 197 35 31 33 99 Other Income 120 23 34 26 83 Total Income 317 58 66 58 182 Operating Expenses (242) (52) (50) (51) (153) Operating Profit 75 6 16 8 29 Total Provisions (162) (40) (32) (25) (97)

  13. Slide 13: Net Profit / (Loss)

    Net Profit / (Loss) (Rs. in Cr.) 38.3 40 20 0 -20 (16.9) (18.1) -40 (35.3) -60 (88.1) -80 -100 FY08 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Private & Confidential © Copyright IBM Corporation 2008 13

  14. Slide 14: Retail Deposits Contribute 84% of Total Deposits

    Retail Deposits Contribute 84% of Total Deposits (Rs. in Cr.) FY08 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Total Deposits 6,075 4,647 4,571 4,503 4,482 Retail Deposits / Total Deposits 51.9% 67.5% 78.8% 81.3% 83.9% CASA Ratio 24.2% 30.9% 33.5% 36.8% 38.1% CASA Term Deposit Others 244 211 106 519 399 2,637 2,79

  15. Slide 15: Advances

    Advances (Rs. in Cr.) FY08 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Gross Advances 4,255 3,437 3,352 3,182 3,376 Net Advances 4,069 3,274 3,105 2,963 3,139 Yield on Advances 13.3% 13.6% 11.7% 12.8% 12.0% 1,450 1,322 1,168 1,250 957 1,021 1,060 1,003 953 1,050 933 850 571 650 450 564 619 448 529 507 450 376 250

  16. Slide 16: Focus on Secured Lending. Reduction in PL, CV and CE

    Focus on Secured Lending. Reduction in PL, *CV and *CE (Rs. in Cr.) Net Advances – December 31, 2009 Retail Banking – December 31, 2009 Priority Sector, 619 *LATD, 8% Staff Retail Banking, 953 Mortgages, 38% Loan, 1% Personal Loan, 16% Corporate Banking, SME+Micro SME, 564 *CV,25% 1,003 *STVL,3% *CE

  17. Slide 17: Balance Sheet Stabilized

    Balance Sheet Stabilized (Rs. in Cr.) 7,582 8,000 7,000 5,943 5,799 5,591 5,702 6,000 5,000 4,000 3,000 2,000 1,000 0 FY08 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Private & Confidential © Copyright IBM Corporation 2008 17

  18. Slide 18: Improvement in Net Interest Margin and Cost of Funds

    Improvement in Net Interest Margin and Cost of Funds Net Interest Margin 3.5% 3.03% 2.86% 2.78% 3.0% 2.61% 2.50% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% FY08 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Cost of Funds 8.43% 9.0% 8.09% 8.0% 7.18% 6.58% 7.0% 6.35% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% FY08 FY09 Q1 FY10 Q2 FY10 Q3

  19. Slide 19: Strong Provision Coverage

    Strong Provision Coverage (Rs. in Cr.) Q1 Q2 Q3 FY 08 FY09 FY10 FY10 FY10 Pan Bank NPA Coverage Ratio 48.4% 53.4% 52.8% 61.3% 63.4% Unsecured PL NPA Coverage 66.2% 76.4% 64.4% 68.9% 73.3% Ratio Gross NPA Net NPA Net NPA (%) 400 6% 364 358 373 350 5.0% 306 4.7% 5% 300 3.9% 4.4% 4% 250 200 3% 150 154

  20. Slide 20: Strong Capital Adequacy Ratio

    Strong Capital Adequacy Ratio FY 08 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Capital Adequacy Ratio 13.4% 13.4% 13.5% 15.9% 16.9% 3.3% 0.18 3.4% 0.16 1.6% 1.8% 1.8% 0.14 0.12 0.1 0.08 13.6% 11.8% 11.6% 11.7% 12.5% 0.06 0.04 0.02 0 FY08 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Tier I Tier II Tier I Capital enhanced by Rs. 8

  21. Slide 21: Improvement in Total Costs

    Improvement in Total Costs Total Cost Cost Income Ratio (Rs. in Cr.) 100.0% 250 239 242 90.2% 86.6% 90.0% 76.3% 76.2% 200 80.0% 68.6% 70.0% 150 60.0% 100 50.0% 52 50 51 40.0% 50 30.0% 0 20.0% FY 08 FY 09 Q1 FY10 Q2 FY10 Q3 FY10 Private & Confidential © Copyright IBM Corporation 2008 21

  22. Slide 22: Treasury

    Treasury As at December 31, 2009 (Rs. in Cr.) Total Amount SLR Investments 1,351.6 Non-SLR Investments 349.6 Total 1,701.1 HTM 1,369.4 AFS 326.0 HFT 5.7 Total 1,701.1 Total Investments 1,929 1,909 2,000 1,701 1,622 1,600 1,200 800 400 0 FY 09 Q1 FY10 Q2 FY10 Q3 FY10 Private & Confidential © Copyrigh

  23. Slide 23: Business Strategy

    Business Strategy ƒ Grow Retail, micro-SME, SME, mid- Corporate and Agri / Microfinance with a “customer centric approach”. Concentrate on secured lending & diversified portfolio ƒ Retail – Branch Centric ƒ Low cost deposits (CASA / Term) ƒ Secured lending (Home Loans, Loan Against Property, LATD) ƒ

  24. Slide 24: Next Steps

    Next Steps ƒ Return to month–on–month Profit ƒ Increase Balance Sheet size Goal ƒ Improve Cost / Income ratio ƒ To improve ROE numbers ƒ Sensible growth. Balance portfolio mix with emphasis on secured lending ƒ Focus on Retail Deposits Approach ƒ Income before Cost ƒ Discipline in execution (Strateg

  25. Slide 25: Disclaimer

    Disclaimer This presentation has been prepared by Development Credit Bank Limited (the “Bank”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or f

  26. Slide 26: Thank you

    Thank you Private & Confidential © Copyright IBM Corporation 2008 26

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