DCB Bank Limited · NSE:DCBBANK
DCB Bank — Q1 FY2012 Earnings Presentation
30 slides from DCB Bank's earnings presentation, July 2011
Slide 1: Investor Presentation – Q1 FY 2012
Investor Presentation – Q1 FY 2012 July 2011 Private & Confidential
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Development Credit Bank Limited (the “Bank”). This presentation has been prepared for information purposes only and is not an
Slide 3: Contents
Contents DCB Bank – Overview Business Strategy & Financials Annexure 3 Private & Confidential
Slide 4: DCB Bank – Overview
DCB Bank – Overview DCB Bank – at a Development Credit Bank Ltd (DCB Bank) http://www.dcbbank.com is a modern emerging new generation private sector bank. glance Present since 1930s, DCB is the only co-operative bank in India to have been converted into a private sector commercial bank in 1995 Distr
Slide 5: Key Milestones
Key Milestones In Existence Since 1930s 1981 1984 1988 1995 2004 2006 Amalgamation of Multi-State Co- Acquired Conversion to Classified as a IPO Masalawala Co- operative Bank “Scheduled” Development “New Generation operative Bank and status from Credit Bank Ltd. Private Sector Ismailia Co- Reserve B
Slide 6: Robust Promoter Background and Strong Investor Profile
Robust Promoter Background and Strong Investor Profile Shareholding Pattern (June 30, 2011) Key non-promoter shareholders Al Bateen Investment Co LLC: 3.69% Promoter and Promoter The India Fund, INC: 3.58% Group 23.08% Tata Capital Ltd: 3.29% Institutions 13.60% DCB Investments Ltd. (SVG Capital): 2
Slide 7: Experienced Board
Experienced Board Nasser Munjee Murali M. Natrajan Non- Executive Chairman Managing Director & CEO Ex- Executive Director – HDFC, Standard Chartered Bank, Citibank, instrumental in setting up IDFC. Sits on 15 American Express – *28 yrs exp. corporate Boards in India including HDFC, Tata Motors etc S
Slide 8: Strong Management Team
Strong Management Team Bharat Sampat Praveen Kutty Murali M. Natrajan Chief Financial Officer Head- Retail, SME Banking ABN Amro Bank, Standard Chartered Managing Director & CEO Standard Chartered Bank, Citibank, Citibank – *20 yrs exp. Bank, ANZ Banking Group, Hoechst India – *27 yrs exp. American
Slide 9: 82 Branches, Strong Presence in the Western Region
82 Branches, Strong Presence in the Western Region Branch Network GOA: (4) ANDHRA PRADESH: (10) Mapusa (1) Hyderabad (8) Margao (1) Warangal (2) Panaji (1) Vasco -Da-Gama (1) HARYANA: (1) Gurgoan (1) GUJARAT: (16) Ahmedabad (3) KARNATAKA: (4) Ankleshwar (1) Bengaluru (4) Vadodra (1) Bhuj (1) NEW DEL
Slide 10: Products & Services
Products & Services Retail Banking SME, Corporate Banking, NBFCs, Co-operative Banks Deposit Products: Loans: Current and Savings Auto Loans* Current Account Cash Management** Term Deposits Commercial Vehicle* Trade Current Account RTGS /NEFT NRI Deposits Construction Working Capital Internet Bankin
Slide 11: Ratings
Ratings Feb 28, 2009 Jul 31, 2009 Sep 30, 2010 CRISIL - Long - BBB/Stable BBB +/Stable Term - Short P1 P1 P1 Term FITCH BBB/Negative BBB/Negative BBB/Stable Brickworks - BWR A-/Stable BWR A-/Stable 11 Private & Confidential
Slide 12: Contents
Contents DCB Bank – Overview Business Strategy & Financials Annexure 12 Private & Confidential
Slide 13: Business Strategy
Business Strategy Grow Retail Mortgages, micro SME, SME, mid- Corporate and Agri & Inclusive Banking with a “customer centric approach”. Concentrate on secured lending & diversified portfolio Retail – branch centric Low cost deposits (CASA / Term) Secured lending (Home loans, Loan against property,
Slide 14: Calibrated Growth in Balance Sheet
Calibrated Growth in Balance Sheet Total Assets INR mn 6 1,3 6 7 6 3 ,7 3 3 6 9 ,3 7 7 6 9 ,8 8 9 7 3 ,7 2 3 7 6 ,2 2 0 7 5,7 7 5 5 9 ,4 3 0 M a r 3 1, 2 0 0 8 M ar 3 1, 2 0 0 9 M a r 3 1, 2 0 10 J un 3 0 , 2 0 10 S e p 3 0 , 2 0 10 D e c 3 1, 2 0 10 M a r 3 1, 2 0 11 J un 3 0 , 2 0 11 Net Advances*
Slide 15: Build Stable Deposit Base – Focus on CASA
Build Stable Deposit Base – Focus on CASA Deposits INR mn INR mn 4,271 3,173 1,652 1,799 2,601 1,510 1,590 3,957 34,301 36,002 33,746 36,712 31,220 41,735 28,101 29,356 16,927 18,422 18,998 18,704 19,755 19,920 14,743 14,411 M ar 31, 2008 M ar 31, 2009 M ar 31, 2010 Jun 30, 2010 Sep 30, 2010 Dec 31,
Slide 16: Deposit Per Branch Improving
Deposit Per Branch Improving Retail CASA & Retail Term Deposits INR mn 30,250 23,830 25,694 26,863 27,085 17,673 23,056 18,132 16,972 17,525 17,763 18,455 18,762 13,884 13,248 15,978 M ar 31, 2008 M ar 31, 2009 M ar 31, 2010 Jun 30, 2010 Sep 30, 2010 Dec 31, 2010 M ar 31, 2011 Jun 30, 2011 Retail CA
Slide 17: Consistent Growth in Strategic Businesses
Consistent Growth in Strategic Businesses Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, INR mn 2008 2009 2010 2011 2011 CASA 14,743 14,411 16,927 19,755 19,920 Retail Term Deposits 17,502 18,132 23,056 27,085 30,250 Mortgages (sourced & 2,464 2,626 4,118 10,811 12,529 acquired) SME + Micro SME 1,673 4,483
Slide 18: Diversified Portfolio
Diversified Portfolio Portfolio* as on Mar 31, 2009 Portfolio* as on Mar 31, 2010 Retail Banking - 40% Retail Banking - 26% M o rtgages M o rt gages 12% C V / C E / S T VL 8% C V/ C E/ S T VL Others 8% P erso na l Lo ans Ot hers 17% 3% 3% 5% SM E+M S M E S M E+M S M E 14% P ers o na l Lo ans A IB 17
Slide 19: Strong Provision Coverage
Strong Provision Coverage Key Ratios 8.78% 8.69% 89.88% 96.68% 100.00% 100.00% 93.99% 8.47% 87.64% 82.50% 84.73% 85.55% 79.64% 76.66% 75.19% 7.61% 70.04% 7.07% 5.90% 66.20% 53.34% 5.86% 48.40% 3.88% 1.49% 3.11% 2.53% 1.19% 1.86% 0.66% 1.30% 0.97% M ar 31, 2008 M ar 31, 2009 M ar 31, 2010 Jun 30, 201
Slide 20: Investment in Front Line for CASA Growth
Investment in Front Line for CASA Growth Operating Income INR mn 1,972 1,891 1,420 1,201 1,071 433 464 493 502 1,121 519 299 269 260 292 234 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY 11 Q4 FY11 FY11 Q1 FY12 Other Incom e Net Interest Incom e Operating Cost INR mn 80.62% 78.07% 76.27% 1,044 72.59% 71.59% 72.31
Slide 21: Consistent Operating Performance
Consistent Operating Performance Operating Profit INR mn 860 753 483 226 208 206 220 165 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11 Q1 FY12 Provisions INR mn 1,634 1,268 646 255 160 124 106 77 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11 Q1 FY12 * Provisions include provisions for NPAs, standa
Slide 22: Bottom Line Improvement
Bottom Line Improvement Net Profit / Loss * INR mn 214 48 113 82 88 (29) (785) (881) FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11 Q1 FY12 * Net Profit / (loss) represents post tax numbers 22 Private & Confidential
Slide 23: Yield, Cost of Funds and NIM
Yield, Cost of Funds and NIM Net Interest Margin 3.14% 3.13% 3.15% 3.12% 3.13% 3.10% 2.86% 2.79% FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11 Q1 FY12 Yield on Advances, Base Rate & Cost of Funds 13.58% 12.33% 11.72% 11.86% 11.21% 11.26% 11.12% 10.95% 10. 00% 8. 50% 8. 25% 9. 50% 7. 75% 9. 00% 7.51
Slide 24: Other Income
Other Income INR mn FY09 FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 FY11 Q1FY12 Commission, exchange and 768 664 156 175 165 166 661 170 brokerage Sale of investments 20 178 86 36 57 74 253 48 Sale of land, buildings and 47 (3) (2) (2) (1) 16 11 (14) other assets Exchange transactions 224 64 18 29 17 25 90 21
Slide 25: Treasury
Treasury INR mn Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Jun 30, 2011 SLR 12,675 15,789 17,512 20,068 Non-SLR 3,542 4,390 5,439 4,206 Total Investments * 16,217 20,179 22,951 24,274 HTM 10,808 16,890 18,847 19,157 AFS 4,630 3,263 3,029 4,026 HFT 779 26 1,075 1,091 Total Investments * 16,217 20,179 22,
Slide 26: Capital Adequacy Ratios
Capital Adequacy Ratios Capital Adequacy Ratios – Basel II 14.85 % 13 .80 % 13.57 % 13.3 9 % 13.25 % 13.3 0 % 12 .9 2% 2 .9 2% 1.80 % 2 .40 % 2 .3 1% 2 .2 6% 2.15% 1.85 % 11.10 % 11.5 0% 11.9 3% 11.40 % 11.2 6% 11.13% 11.0 7% M ar 31, 2 00 9 M a r 3 1, 2 0 10 Jun 30 , 2 010 S ep 3 0, 20 10 D ec 3 1,
Slide 27: Contents
Contents DCB Bank – Overview Business Strategy & Financials Annexure 27 Private & Confidential
Slide 28: Balance Sheet
Balance Sheet Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, INR mn 2009 2010 2010 2010 2010 2011 2011 Shareholder’s Equity 5,957 5,990 5,960 6,003 6,086 6,187 6,273 Deposits 46,469 47,873 51,152 54,951 56,506 56,102 59,805 Borrowings 1 3,455 5,035 3,840 5,648 4,534 8,607 7,238 Other Liabil
Slide 29: Profit & Loss
Profit & Loss INR mn FY09 FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 FY11 Q1FY12 Net Interest Income 1,972 1,420 433 464 493 502 1,891 519 Other Income 1,201 1,071 299 269 260 292 1,121 234 Operating Income 3,173 2,491 732 733 753 794 3,012 753 Operating Expenses (2,420) (2,008) (506) (525) (547) (574) (2,152
Slide 30: Thank you
Thank you 30 Private & Confidential