Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q1 FY2023 Earnings Presentation
45 slides from Dcb Bank's earnings presentation, Jul 30, 2022
Slide 1: Exchange filing cover letter
Ref. No.CO:CS:RC:2022-23:103 July 30, 2022 BSE Limited National Stock Exchange of India Limited Listing Department, Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th floor, Plot No. C/1, 1st floor Dalal Street. G Block Bandra – Kurla Complex, Mumbai 400 001 Bandra (East), Mumbai 400
Slide 2: DCB Bank Limited Investor Presentation – Q1FY23
DCB Bank Limited Investor Presentation – Q1FY23
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by DCB Bank Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 4: Q1 FY2023 Performance Highlights & Key Takeaways
Q1 FY2023 Performance Highlights & Key Takeaways Improving core fees income: INR 64.78 crores Continued investments in front line + Credit cost: 0.31% branch infrastructure: 405 Branches Strong capital adequacy ratio: Improving growth in Advances: +17.89% 18.47% Y-o-Y and Deposits: +14.64% Y-o-Y Con
Slide 5: Key Performance Highlights – Q1 FY2023
Key Performance Highlights – Q1 FY2023 INR 45,221 crores INR 29,814 crores INR 35,081 crores ( +12.19% Y-o-Y ) ( +17.89% Y-o-Y ) ( +14.64% Y-o-Y ) Balance Sheet Size Advances Deposits INR 97.1 crores 4.21% 1.82% ( 187.78% Y-o-Y ) (Q1FY2022: 4.91%) (Q1FY2022: 2.84%) Profit After Tax Gross NPA Net NPA
Slide 6: Key Performance Highlights – FY2022
Key Performance Highlights – FY2022 INR 44,793 crores INR 29,096 crores INR 34,692 crores ( +13.11% Y-o-Y ) ( +13.05% Y-o-Y ) ( +16.79% Y-o-Y ) Balance Sheet Size Advances Deposits INR 288 crores 4.32% 1.97% ( -14.38% Y-o-Y ) (FY2021: 4.13%) (FY2021: 2.31%) Profit After Tax Gross NPA Net NPA 26.75%
Slide 7: About Us
About Us
Slide 8: About Us
About Us • New generation private sector bank with more • To be the most innovative and responsive than 400 branches across 18 States and 2 neighborhood bank in India serving Union Territories Company Vision entrepreneurs, individuals, and businesses Background • MSME/SME, Agri and Retail focus • Gr
Slide 9: Journey so Far
Journey so Far Amalgamation of Masalawala Private Equity Investment by AKFED (Aga Khan Name changed to DCB Bank 1981 Cooperative Bank and Ismailia 2005 Fund for Economic Development - Principal 2013 Opened 100th Branch Cooperative Bank into Development Promoter) of INR 1.38 bn in March 2005
Slide 10: MSME/SME Opportunity
MSME/SME Opportunity Number of working enterprises – 64 million, Employment – 111 million MSMEs play a pivotal role in the economic and Urban 49%, Rural – 51% social development of the country Manufacturing- 31%, Trade – 36%, Other services – 33% Robust Indian economy, MSMEs target market size and D
Slide 11: Business Strategy
Business Strategy 01 02 03 04 05 06 Target MSME/SME/ Create a diversified, Limit Corporate, Focus on retail Rely mainly on Retail Target Tier 2 to Tier 6 Retail segment secured and granular unsecured and lumpy Mortgages*, Working Deposits (CASA, Term locations portfolio exposures Capital, Commercial
Slide 12: Wide Range of Products
Wide Range of Products Retail Banking Deposit Products Cards Payments Advances – Focus on Secured Lending Third Party Distribution • Home Loans • Kisan Credit Card • Life Insurance, • Current and Savings • ATM Card • Bill / Utility Payments • Loan Against Property • Gold Loan • General Insurance (CA
Slide 13: Outlook & Way Forward
Way Forward Balance Sheet Asset Quality & Cost to Average Assets Margins Key Ratios (Deposits + Advances) Credit Costs / Cost to Income Ratio Balance Sheet as at 30-Jun-22: Diversified portfolio with focus on Gross NPA at 4.21% and Net NPA Cost to Average Assets at 2.67% Return on Assets a
Slide 14: Customer Service and Digital Initiatives
Customer Service and Digital Initiatives
Slide 15: Well Penetrated Distribution Network
Well Penetrated Distribution Network Head count ATMs Branches 8,077 8,697 402 373 400 405 349 354 6,556 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Region wise Branches (%) State wise Branches (%) 18% 19% 16% 28% 4% 12% 4% 26% 5% 8% 5% 28% 5% 8% 6% 8% Maharashtra Odisha Gujarat Me
Slide 16: Digital Engagement / Technology Innovation
Digital Engagement / Technology Innovation Mobile Applications • Mobile Banking for multilingual Retail customers Technology Adoption • Mobile App for Gold Loan customers • Blockchain – adopted ‘Blockchain’ for use cases such as multi authentication for ATM • Zippi + - paperless and digital onboardi
Slide 17: Leading to Enhanced Digital Footprint
Leading to Enhanced Digital Footprint Digital Transactions (% of Total Transactions) Personal Internet Banking Transactions (In Lakhs) 2.7 2.8 91% 2.7 2.6 88% 89% 2.5 87% 87% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Digital transactions (%) UPI Transactions (In Lakhs) Mo
Slide 18: Board & Management
: Board & Management
Slide 19: Eminent Board of Directors
Eminent Board of Directors Amyn Jassani Ashok Barat Iqbal Khan Independent Director Independent Director Non-Independent Director A Fellow of the Institute of Chartered Accountants with more than 25 A Fellow of the ICAI and of the ICSI, Associate of the Institute of A Partner at Shardul Amarchand Ma
Slide 20: Experienced Team of Professionals
Experienced Team of Professionals Abhijit Bose Ajay Mathur Ajit Kumar Singh Bappa Roy Damodar Agarwal • Designation: Chief Credit Officer • Designation: Head – Collections & • Designation: Head – Treasury & • Designation: Product Head – • Designation: Head – Strategic • Years of Experience: 31+ Comm
Slide 21: Business Update
Business Update
Slide 22: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 30-Jun-22) 9% 6% 3% 6% 29,814 5% 29,096 4% 27,343 26,537 3% 25,290 10% 3% 21% 3% 2% 1% 3% 42% Mortgages Agri & Inclusive Banking (AIB) Mortgages Tractors Corporate banking Gold Loan Kissan Credit Card 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22
Slide 23: Agri & Inclusive Banking (AIB) – A Bank Within a Bank
Agri & Inclusive Banking (AIB) – A Bank Within a Bank AIB as a % of Total Portfolio 18% 20% 21% 22% 21% 21% 82% 80% 79% 78% 79% 79% 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 Jun-22 AIB Others • AIB Manages 180 Branches • AIB’s main mandate is financial inclusion and coordinate achievement of
Slide 24: Disbursements
Disbursements Product wise Disbursement Trends (INR crores) Disbursements through Co-Lending (INR crores) 3,631 1,954 3,551 3,150 3,012 1,111 1,115 795 821 366 574 715 442 885 873 1,479 719 503 570 614 315 685 119 283 667 782 566 661 372 380 309 388 139 328 302 183 169 244 222 26 62 40 21 24 15 Q1FY
Slide 25: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (INR crores) 34,692 35,081 25,411 25,057 23,851 22,917 30,370 29,704 23% 21% 21,625 9,281 10,024 27% 29% 30% 28,435 31% 6,519 6,787 18,167 24,007 6,810 5,840 72% 78% 78% 72% 78% 64% 77% 79% 25,411 25,057 73% 71% 70% 23,851 22,917 6
Slide 26: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 38,774 39,080 35,812 35,439 34,924 Instruments CRISIL ICRA 24% 26% 19% 23% 24% Long Term – Subordinated Debt AA-/Stable A+Stable 69% 66% 64% 66% 67% Certificates of Deposits A1+ - Short – Term Fixed Deposits A1+ A1+ 10% 9% 7% 9% 8% 2% 2% 2% 2% 2% 30
Slide 27: Asset Quality
Asset Quality 6% 75% 4.91% 4.78% 67.84% 5% 4.73% 69.48% 70% 5% 62.17% 4.32% 4.21% 65% 59.42% 60.46% 4% 60% 4% 55% 3% 2.84% 50% 2.66% 2.55% 3% 45% 1.97% 2% 1.82% 40% 2% 35% 1% 30% 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gros
Slide 28: Restructured Advances
Restructured Advances 31-Mar-2022 30-Jun-2022 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 2,156 287 1,869 2,094 278 1,816 NPA 273 137 136 288 147 141 Total 2,429 424 2,005 2,382 425 1,957 • By September 2022 restructured advances under moratori
Slide 29: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Jan-20 Mar-22 Apr-22 May-22 Jun-22 Business Loans (LAP) 98.9% 97.7% 97.5% 98.2% 98.3% Home Loans 99.2% 99.0% 98.4% 98.8% 99.1% CV Loans 96.0% 85.1% 91.1% 93.8% 93.8% Collection Efficiency Overall (Including delinquent and restructu
Slide 30: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 4.91% 2.84% 8.12% 7.90% 7.22% 4.32% 4.21% 1.97% 5.64% 1.82% 4.33% 3.10% Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 31: Provisions – Balance Sheet
Provisions – Balance Sheet (INR crores) 30-Jun-2021 31-Mar-2022 30-Jun-2022 Provision for Gross NPA 438 595 620 Floating Provision 112 122 125 Sub-total (A) 550 717 745 Specific Standard Asset Provision 14 29 40 Contingency provision on Restructured and Stressed Accounts 108 70 68 Restructured Stand
Slide 32: Key Ratios (Y-o-Y)
Key Ratios (Y-o-Y) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.50% 11.06% 7.10% 6.96% 3.67% 3.59% 3.56% 10.71% 6.62% 6.49% 6.16% 6.05% FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Cost to Average Assets Cost to Income Ratio Return on Assets Return on E
Slide 33: Key Ratios (Q-o-Q)
Key Ratios (Q-o-Q) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 10.50% 10.66% 10.67% 11.00% 10.65% 6.34% 6.19% 6.07% 6.04% 6.00% 6.23% 6.08% 5.96% 5.95% 5.90% 3.93% 3.61% 3.61% 3.31% 3.37% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY2
Slide 34: Capital Adequacy Ratio
Capital Adequacy Ratio Capital Adequacy Ratio (%) Risk Weighted Assets (INR crores) 19.64% 23,789 24,313 24,938 19.34% 23,107 23,501 18.92% 18.21% 18.47% 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 15.54% 15.28% 15.84% 15.44% 15.10% Risk Weighted Assets / Total Assets (%) 57.33% 56.66% 57.77%
Slide 35: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 121.2 66.3 118.3 64.8 114.8 63.0 61.4 97.7 92.4 47.2 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 34
Slide 36: Financial Highlights
Financial Highlights
Slide 37: Profit & Loss Statement – Q1FY2023
Profit & Loss Statement – Q1FY2023 (INR crores) Q1FY2023 Q1FY2022 Y-o-Y Q4FY2022 Q-o-Q FY2022 Interest Income 949 846 920 3,513 Interest Expense 575 537 540 2,155 Net Interest Income 374 309 +21% 380 -2% 1,358 Other Income 92 121 115 452 Total Income 466 430 +8% 495 -6% 1,810 Operating Expenses 300
Slide 38: Balance Sheet - as at June 30, 2022
Balance Sheet - as at June 30, 2022 (INR crores) 30-Jun-22 31-Mar-22 30-Jun-21 Capital & Liabilities Shareholders Equity 4,116 4,049 3,793 Deposits 35,081 34,692 30,602 Borrowings 3,999 4,082 4,322 Other Liabilities and Provisions 2,025 1,970 1,591 Total 45,221 44,793 40,308 (INR crores) 30-Jun-22 3
Slide 39: Historical Profit & Loss Statement
Historical Profit & Loss Statement (INR crores) FY2019 FY2020 FY2021 FY2022 Interest Income 3,041 3,537 3,458 3,513 Interest Expense 1,892 2,272 2,171 2,155 Net Interest Income 1,149 1,265 1,287 1,358 Other Income 344 388 445 452 Total Income 1,493 1,653 1,732 1,810 Operating Expenses 853 903 847 1,
Slide 40: Historical Balance Sheet
Historical Balance Sheet (INR crores) 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 Capital & Liabilities Shareholders Equity 3,116 3,422 3,759 4,049 Deposits 28,435 30,370 29,704 34,692 Borrowings 2,723 3,408 4,482 4,082 Other Liabilities and Provisions 1,518 1,305 1,657 1,970 Total 35,792 38,505 39,602
Slide 41: Shareholding Pattern
Shareholding Pattern Key Non Promoter Shareholders % Shareholding as on 30-June-2022 DSP Small Cap Fund 4.79 5.01% Tata Mutual Fund* 4.48 14.85% HDFC Small Cap Fund 4.44 27.08% ICICI Prudential Mutual Fund* 4.10 India Advantage Fund S4 I 4.01 Franklin India Smaller Companies Fund 3.36 Oman India Joi
Slide 42: ESG Initiatives
ESG Initiatives Environment Social Governance • Tree plantation to increase urban & rural • Sustainable livelihood created & lives • The Board of Directors comprise executive green cover, biodiversity & sustainable impacted (Cuttack district, Odisha): and non‐executive directors that also livelihood
Slide 43: Awards & Accolades (1/2)
Awards & Accolades (1/2) Certified By The Great Place To Work Institute For Six Consecutive Years India’s Best India’s Top 100 Best Workplaces in BFSI Companies to Work For 2019: India’s Top 20 Best Workplaces in BFSI 2019 : 2019 DCB Bank was Ranked 75th – Best Companies to Work For In India, 2019 2
Slide 44: Awards & Accolades (2/2)
Awards & Accolades (2/2) DCB Bank as India’s Top 30 India’s Top 100 List of Great People Companies with Great People Managers, Managers, 2 People Managers from DCB Bank won amongst 4,189 participating organizations amongst 10,273 participating People Managers 43
Slide 45: Thank you
Thank you To receive investor updates from DCB Bank Limited, write in at investorrelations@dcbbank.com. For more information kindly log on to : www.dcbbank.com 44 44