DCB Bank Limited · NSE:DCBBANK
DCB Bank — Q2 FY2019 Earnings Presentation
36 slides from DCB Bank's earnings presentation, Oct 17, 2018
Slide 1: Exchange filing cover letter
DCB BANK Ref. No.CO:CS:RC:2018-19:158 October 17, 2018 BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Sandra Kurla Complex, Dalal Street, Fort, Sandra (E), .. Mumbai - 400 023. Mumbai - 400 051. . Dear Sirs, BSE Scrip Code No.: 532772 NSE SYMBOL: DC
Slide 2: Investor Presentation – Q2 FY 2019
Investor Presentation – Q2 FY 2019 October 17, 2018 DCB Bank Limited
Slide 3: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed, redistributed, disseminated or transmitted, directly or indirectly, in any manner. The information in this presentation is being provided by DCB Bank Limited (the “Bank”). This presentation has been
Slide 4: Branch Network September 30, 2018
Branch Network September 30, 2018 This map is for representation purpose only DCB Bank Limited 3
Slide 5: Key Indicators - I
Key Indicators - I No. of Cost to Return on Return on INR mn Branches Balance Sheet Income Ratio Asset Equity Q2 FY 2019 328 325,102 58.88% 0.92% *11.13% Q1 FY 2019 323 311,779 60.26% 0.90% *10.75% FY 2018 318 302,221 59.79% 0.94% *10.31% FY 2017 262 240,464 60.02% 0.93% 10.30% FY 2016 198 191,185 5
Slide 6: Key Indicators - II
Key Indicators - II INR mn Q2 FY 19 Q1 FY 19 Q2 FY 18 Y-o-Y Deposits 261,687 250,324 205,671 27% Of which CASA 63,587 61,659 53,234 19% Of which Retail Term 135,624 127,414 106,800 27% - Of which NRI Term 16,340 15,538 14,071 16% Net Advances 220,688 212,434 173,950 27% INR mn Q2 FY 19 Q1 FY 19 Q2 F
Slide 7: Balance Sheet
Balance Sheet Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, INR mn 2013 2014 2015 2016 2017 2018 2018 2018 Shareholder’s Equity 10,031 11,540 15,886 17,922 22,049 28,078 28,536 29,307 Deposits 83,638 103,251 126,091 149,260 192,892 240,069 250,324 261,687 Borrowings 15,256 8,601 11
Slide 8: Profit & Loss
Profit & Loss INR mn Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Net Interest Income 2,481 2,505 2,637 2,730 2,818 Other Income 651 749 849 828 735 - Commission, exchange 476 569 618 599 559 and brokerage - Profit on Sale of Investment 71 55 42 153 31 - Profit on Exchange Transaction 35 36 37 49 52 Oper
Slide 9: Profit & Loss
Profit & Loss INR mn FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Net Interest Income 2,844 3,684 5,082 6,195 7,971 9,954 Other Income 1,170 1,387 1,657 2,205 2,488 3,103 - Commission, exchange 893 999 1,193 1,405 1,651 2,176 and brokerage - Profit on Sale of 139 225 277 423 454 454 Investment -
Slide 10: Deposits Mix
Deposits Mix Deposits as on Sep 30, 2018 Residential Term *CASA Deposit 50% 24% Interbank Term Deposit 20% Non-Resident Term Deposit 6% Retail Deposits to Total Deposits - 75.30% * CASA includes NRI CASA 9 DCB Bank Limited
Slide 11: Advances Mix
Advances Mix Net Advances as on Sep 30, 2018 SME + MSME 12% Corporate Banking Mortgages 40% 15% AIB 19% Commercial Vehicle 7% Others 2% Construction Finance Gold Loan 2% 3% 10 DCB Bank Limited
Slide 12: NIM, Yield and Cost of Funds
NIM, Yield and Cost of Funds Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Year Ended 2013 2014 2015 2016 2017 2018 2018 2018 Net Interest 3.34% 3.56% 3.72% 3.94% 4.04% 4.16% 3.90% 3.83% Margin Yield on 12.75% 12.84% 12.63% 12.52% 12.03% 11.41% 11.21% 11.07% Advances Cost of 7.78%
Slide 13: Non Performing Assets
Non Performing Assets Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Sep 30, Mar 31, Jun 30, Sep 30, 2013 2014 2015 2016 2017 2017 2018 2018 2018 Gross NPA 3.18% 1.69% 1.76% 1.51% 1.59% 1.80% 1.79% 1.86% 1.84% Net NPA 0.75% 0.91% 1.01% 0.75% 0.79% 0.90% 0.72% 0.72% 0.70% Provision 85.71% 80.54% 74.66% 77.5
Slide 14: Gross NPA Movement
Gross NPA Movement INR mn Q2 2017-18 Q1 2018-19 Q2 2018-19 FY 2017-18 Opening Balance 2,853 3,690 4,006 2,542 (+) Add Fresh Slippages 775 1,071 972 3,463 Addition to Existing 4 3 6 26 NPAs (-) Less Recoveries 212 248 327 985 Upgrades 261 432 373 1,034 Write Offs / Sacrifice 1 78 184 322 Closing Bala
Slide 15: Treasury
Treasury Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Sep 30, INR mn 2012 2013 2014 2015 2016 2017 2018 2018 SLR 20,219 24,332 28,072 34,750 39,855 47,711 49,091 56,653 Non-SLR 774 5,552 4,236 4,872 3,478 10,468 13,099 13,373 Total 20,993 29,884 32,308 39,622 43,333 58,179 62,190 70,026 I
Slide 16: Capital Adequacy Ratios – Basel III
Capital Adequacy Ratios – Basel III Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, 2012 2013 2014 2015 2016 2017 2018 2018 2018 CRAR 15.41% 13.61% 13.71% 14.95% 14.11% 13.76% 16.47% 15.55% 15.57% -- Tier I 13.81% 12.62% 12.86% 14.21% 12.79% 11.87% 12.72% 12.02% 12.02% -- Tie
Slide 17: Ratings
Ratings Sep 30, Dec 31, Mar 31, Mar 31, Mar 31, Sep 30, 2013 2014 2016 2017 2018 2018 ICRA Long Term – A+(hyb) A+(hyb) A+(hyb) A+(hyb) Subordinated - - (stable) (stable) (stable) (stable) Debt Short – Term - A1+ A1+ A1+ A1+ A1+ Fixed Deposits CRISIL Long Term – Subordinated - - - - A+ /Stable A+ /St
Slide 18: Overview
Overview 17 DCB Bank Limited
Slide 19: Who is our Customer? Opportunity
Self Employed / Small Business (For example: Trader, Commodity, Gold Trader, Vegetable Trader, Commission Agent, Retailer, Restaurant Owner, Caterer, Baker, Vending Machine Supplier , Consultant, Doctor, Contractor, Interior Decorator, Software Designer, Salon, Beauty Parlor, Printer, Electrical Cus
Slide 20: Our Customers
Our Customers 19 DCB Bank Limited
Slide 21: Hotel Owner
a 05 BANK Hotel Owner
Slide 22: Local Cable Network Operator
Local Cable Network Operator 21
Slide 23: Trader – Collars & Labels
Trader – Collars & Labels 22
Slide 24: Trader – Threads & Elastics
Trader – Threads & Elastics 23
Slide 25: Importer - Hearing Aid Devices
Importer - Hearing Aid Devices 24
Slide 26: Owner - Provision Store
= Owner - Provision Store tees
Slide 27: Wholesaler - PVC Pipes & Fittings
Wholesaler - PVC Pipes & Fittings 26
Slide 28: Manufacturer – Chandelier Lights
Manufacturer – Chandelier Lights 27
Slide 29: Wholesaler – Grains
Wholesaler – Grains 28
Slide 30: Business Strategy
Business Strategy Rely mainly on Retail 1 Concentrate on Tier 2 to 2 Relentless focus on 3 Deposits (Term, CASA). Tier 6 locations. Liquidity, Costs, Grow NRI deposits. Limit Operational Risks, dependency on bulk. People and Customer Service. Improve continuously. 4 Form strategic alliances 5 Contin
Slide 31: Products and Services
Products and Services Retail Banking SME, Corporate Banking, NBFCs, Co-operative Banks Deposit Products: Loans: Bills Collection Term Loans Corporate Salary Auto Loan Current Account Trade Current Account Current and Savings Commercial Vehicle Foreign Exchange Working Capital L
Slide 32: Capital Raising and Milestones
Capital Raising and Milestones Tier I Capital Raising Milestones 2017 QIP of INR 3.8 bn 2017 Opened 300th Branch 2014 QIP of INR 2.5 bn 2016 Opened 200th Branch QIP of INR 940 mn and Preferential 2015 Opened 150th Branch 2012 Allotment of INR 1,390 mn 2013 Name changed to DCB Bank Ltd. 2009 QIP of I
Slide 33: Investor Profile as on September 30, 2018
Investor Profile as on September 30 , 2018 Key Non Promoter Shareholders % Matthews India Fund 4.09% India Advantage Fund S4 I 4.03% Premji Invest * 3.86% *AKFED and PJI 14.94% ***Institutions Aditya Birla Sunlife Mutual Fund * 3.28% 48.74% Others (Non- Tano Mauritius India FVCI II 3.18% Institution
Slide 34: Board of Directors
Board of Directors Amin Manekia Pioneered in concept of automatic beverage vending machines in India. More than 20 years in various capacities in different institutions of AKDN for the social-economic uplift of the poor. Altaf Jiwani Expertise in Foreign Exchange, Risk Management and Trade Finance.
Slide 35: Management Team
Management Team Aditya Prasad – 31 yrs work exp. Ajay Mathur – 23 yrs work exp. Abhijit Bose - *25 yrs work exp. Head – Processes & Projects Head – Collections & Commercial Chief Credit Officer Vehicles Abhijit Shah – 23 yrs work exp. T P Anuradha – 17 yrs work exp. Amit Mehta – 18 yrs work exp. Chi
Slide 36: Thank you
Thank you To receive investor updates from DCB Bank Ltd., write in at [email protected] . Do let us know of any change in your contact details on the same email ID. Corp. & Reg. Office: 6th Floor, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel, Mumbai – 400013 CIN: L9