DCB Bank Limited · NSE:DCBBANK
DCB Bank — Investor Presentation (April 2015)
41 slides from DCB Bank's investor presentation, April 2015
Slide 1: Investor Presentation – FY 2015
Investor Presentation – FY 2015 April 2015 DCB Bank Limited
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 DCB Bank Limited (Formerly Development Credit Bank Limited [the “Bank”]). This presentation has been prepared for information
Slide 3: DCB Bank – Overview
DCB Bank – Overview DCB Bank – at a DCB Bank Limited (Formerly Development Credit Bank Ltd.) http://www.dcbbank.com is a modern emerging new generation glance private sector bank. Present since 1930s, DCB Bank is the only co-operative bank in India to have been converted into a private sector commer
Slide 4: Financial Performance
Financial Performance DCB Bank Limited 4
Slide 5: Highlights
Highlights INR mn Q4 FY 2015 Q4 FY 2014 Increase/ Q3 FY 2015 Increase/ Decrease Decrease Net Profit 630 391 61% 425 48% Total Income 1,760 1,335 32% 1,699 4% Operating Profit 680 502 36% 684 (0.5%) Provisions Other than Tax (143) (111) (30%) (184) 22% Cost to Income Ratio 61.4% 62.4% - 59.8% - INR m
Slide 6: Growth in Profits
Growth in Profits Net Profit * INR mn 1,912 1,514 1,021 551 214 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 630 446 391 411 425 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 *Net Profit represents post tax numbers Includes INR 255 mn impact of Interest on Tax Refund in FY 2015. 6 DCB Bank Limited
Slide 7: ROA and ROE
ROA and ROE ROA 1.63% 1.31% 1.37% 1.25% 1.06% 0.68% 0.32% * FY 2011 FY 2012 FY 2013 Q4 FY 2014 * FY 2014 Q4 FY 2015 FY 2015 ROE 16.25% 13.82% 14.04% 14.16% 11.13% 8.38% 3.52% FY 2011 FY 2012 FY 2013 Q4 FY 2014 * FY 2014 Q4 FY 2015 FY 2015 * *: Ratios for Q4 FY 2014 & Q4 FY 2015 are annualised 7 DCB
Slide 8: Net Interest Income
Net Interest Income Net Interest Income INR mn 5,082 3,684 2,844 2,277 1,891 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 1,3901 1,297 2 1,219 1,177 1,000 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 1: Includes INR 304 mn impact of Interest on Tax Refund 2: Includes INR 55 mn impact of Interest on Tax R
Slide 9: Other Income
Other Income Other Income INR mn 1,657 1,387 1,121 1,170 1,004 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 480 463 1 370 335 345 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 9 DCB Bank Limited
Slide 10: Staff Cost
Staff Cost Staff Cost INR mn 1,960 1,571 1,379 1,246 1,064 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 529 495 463 474 411 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 10 DCB Bank Limited
Slide 11: Other Cost
Other Cost Other Cost INR mn 2,005 1,620 1,374 1,197 1,088 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 551 520 474 459 422 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 11 DCB Bank Limited
Slide 12: Operating Income
Operating Income Operating Income INR mn 6,739 5,071 4,014 3,012 3,281 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 1 1,735 1,699 1,760 2 1,547 1,335 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 1: Includes INR 304 mn impact of Interest on Tax Refund 2: Includes INR 55 mn impact of Interest on Tax Refund 12 D
Slide 13: Cost to Income
Cost to Income Operating Cost INR mn 74.45% 3,965 71.43% 62.93% 68.58% 3,191 58.83% 2,753 2,443 2,152 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 61.35% 59.76% 62.43% 61.29% 53.17% 1,080 1,015 922 948 833 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Excluding impact of interest on Tax Refund, the ratio is 63
Slide 14: Operating Profit
Operating Profit Operating Profit INR mn 2,775 1,880 1,261 860 838 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 1 812 684 680 599 2 502 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 1: Includes INR 297 mn impact of Interest on Tax Refund 2: Includes INR 53 mn impact of Interest on Tax Refund 14 DCB Bank Limite
Slide 15: Provisions
Provisions *Provisions INR mn 863 646 366 287 241 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 366 259 18 8 111 51 Q 4 F Y 14 Q 1 F Y 15 Q 2 F Y 15 Q 3 F Y 15 Q 4 F Y 15 *Provisions include provisions for NPAs, standard assets, floating provision, income and wealth tax, other assets, restructured advance
Slide 16: Business Trends
Business Trends Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, INR mn 2011 2012 2013 2014 2015 CASA 19,755 20,347 22,716 25,813 29,501 Retail TD1 27,085 34,320 43,845 55,945 73,938 NRI Total Deposits 1,815 3,084 5,222 8,303 11,297 Mortgages 10,811 15,510 23,980 31,293 44,585 CV2 727 1,048 1,132 1,715 2,639
Slide 17: Balance Sheet
Balance Sheet Total Assets INR mn 161,323 129,231 112,788 86,769 74,129 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Mar 31, 2014 Mar 31, 2015 Total Assets INR mn 161,323 148,068 134,154 129,231 128,838 Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Mar 31, 2015 17 DCB Bank Limited
Slide 18: Balance Sheet
Balance Sheet Net Advances* INR mn 104,651 81,402 65,861 52,844 42,817 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Mar 31, 2014 Mar 31, 2015 Net Advances* INR mn 104,651 87,931 94,912 81,402 82,914 Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Mar 31, 2015 * Net Advances – Gross advances less (net
Slide 19: Build Stable Deposit Base
Build Stable Deposit Base Deposits INR mn INR mn 14,653 12,756 9,730 15,491 14,018 81,937 7,660 71,518 77,560 2,208 61,948 64,719 2,601 53,262 33,746 40,801 26,782 27,751 28,182 29,501 19,755 20,347 22,716 25,813 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2
Slide 20: Deposits Per Branch
Deposits Per Branch Retail CASA & Retail Term Deposits INR mn 96,595 100,874 90,271 83,157 79,442 73,938 64,730 70,524 64,690 53,482 55,945 58,395 45,540 43,845 34,320 27,085 24,762 25,581 26,071 26,936 18,455 19,162 20,885 23,497 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Mar 31, 2014 Jun 30, 2014 Sep
Slide 21: Diversified Portfolio
Diversified Portfolio Portfolio* as on Mar 31, 2015 Portfolio* as on Mar 31, 2014 *AIB – Agri & Inclusive Banking, SME - Small & Medium Enterprises, MSME - Micro SME 21 DCB Bank Limited
Slide 22: Strong Provision Coverage
Strong Provision Coverage Key Ratios 91.17% 87.64% 85.71% 80.54% 79.07% 76.79% 77.07% 74.66% 5.85% 4.40% 3.18% 1.78% 1.90% 1.87% 1.69% 1.76% 0.57% 0.75% 0.91% 0.97% 1.07% 1.00% 1.01% 0.96% Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Mar 31, 2015 Coverag
Slide 23: Gross NPA Movement
Gross NPA Movement INR mn FY 2013-14 FY 2014-15 Opening Balance of NPAs 2,150 1,385 Add: Fresh Slippages 966 1,706 Addition to Existing NPAs 5 33 Less: Recoveries 363 534 Upgradation 120 258 Write Offs / Sacrifice on OTS 1,253 471 Closing Balance of NPAs 1,385 1,861 Gross Slippage Ratio (annualised)
Slide 24: Yield, Cost of Funds and NIM
Yield, Cost of Funds and NIM Net Interest Margin 3.75% 3.71% 3.72% 3.72% 3.70% 3.56% 3.34% 3.25% 3.13% FY 2011 FY 2012 FY 2013 FY 2014 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 FY 2015 Yield on Advances, Base Rate & Cost of Funds 12.75% 12.60% 12.84% 12.83% 12.50% 12.63% 12.59% 12.61% 11.12% 10.50% 10.85% 10.
Slide 25: Capital Adequacy
Capital Adequacy Capital Adequacy Ratios – Basel III 15.41% 14.95% 13.61% 14.44% 13.25% 1.60% 13.71% 13.63% 13.04% 0.74% 0.86% 0.99% 0.85% 0.86% 2.15% 0.88% 13.81% 12.62% 12.77% 13.58% 14.21% 11.10% 12.86% 12.16% Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Mar 31. 2014 `Jun 30, 2014 `Sept 30, 2014 `Dec 3
Slide 26: Other Income
Other Income INR mn FY FY FY FY Q1 Q2 Q3 Q4 FY 2011 2012 2013 2014 FY15 FY15 FY15 FY15 2015 Commission, exchange and 683 786 893 999 253 297 307 336 1,193 brokerage Sale of 253 118 139 225 43 40 126 68 277 investments Sale of land, buildings and 11 (28) (17) (4) (0) (1) 0 (0) (1) other assets Exchan
Slide 27: Treasury
Treasury Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, INR mn 2011 2012 2013 2014 2015 SLR 17,512 20,219 24,332 28,072 34,750 Non-SLR 5,439 4,959 9,255 8,270 9,956 Total Invtmnts* 22,951 25,178 33,587 36,342 44,706 HTM 18,847 20,845 23,606 26,637 32,651 AFS 3,029 3,541 5,155 7,684 9,484 HFT 1,075 792 4,82
Slide 28: Balance Sheet
Balance Sheet Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, INR mn 2011 2012 2013 2014 2014 2014 2014 2015 Shareholder’s Equity 6,215 8,614 10,031 11,540 11,990 12,351 15,233 15,886 Deposits 56,102 63,356 83,638 103,252 105,519 108,999 118,498 126,091 Borrowings 1 8,607 11,235 15,2
Slide 29: Profit & Loss
Profit & Loss INR mn FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Net Interest Income 1,891 2,277 2,844 3,684 5,082 Other Income 1,121 1,004 1,170 1,387 1,657 Operating Income 3,012 3,281 4,014 5,071 6,739 Operating Expenses (2,152) (2,443) (2,753) (3,191) (3,965) Operating Profit 860 838 1,261 1,880 2,7
Slide 30: Profit & Loss
Profit & Loss INR mn Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Net Interest Income 1,000 1,390 1,177 1,219 1,297 Other Income 335 345 370 480 463 Operating Income 1,335 1,735 1,547 1,699 1,760 Operating Expenses (833) (922) (948) (1,015) (1,080) Operating Profit 502 812 599 684 680 Provisions Other th
Slide 31: Business Strategy
Business Strategy 31 DCB Bank Limited
Slide 32: Steadily growing Branch Network across India
Steadily growing Branch Network across India Branch Network State Branches ANDHRA PRADESH 5 CHATTISGARH 6 GOA 4 GUJARAT 24 HARYANA 4 KARNATAKA 4 KERALA 1 MADHYA PRADESH 13 MAHARASHTRA 38 • Mumbai & suburbs 27 NEW DELHI 7 ODISHA 14 PUNJAB 6 RAJASTHAN 5 TAMIL NADU 6 Existing Branches 154 TELANGANA 12
Slide 33: Comprehensive Products and Services
Comprehensive Products and 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 Equipment* Worki
Slide 34: Business Strategy
Business Strategy Rely mainly on Retail Deposits (Term, CASA) for funding. Focus on branch expansion in Tier 2 to Tier 6. Grow Retail Mortgages, MSME, SME, Commercial Vehicle, Tractors, Gold Loans, mid-Corporate and Agri Loans. Create a diversified portfolio. Limit unsecured lending and lumpy exposu
Slide 35: Overview
RE 0c cank Overview 35 DCB Bank Limited
Slide 36: 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 37: Strong Investor Profile
Strong Investor Profile Shareholding Pattern March 31, 2015 Key non-promoter shareholders Tano Mauritius India FVCI II: 4.66% WCP Holdings III: 3.54% *AKFED and PJI 16.38% PI Opportunities Fund -1: 2.81% ***Institutions 38.17% Ambit Corporate Finance Pvt. Ltd.: 2.77% Others (Non- Institutions)** Baj
Slide 38: Experienced Board
Experienced Board 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 With expertise in Foreign Exchange, Risk Management and Trade Finan
Slide 39: Strong Management Team
Strong Management Team Aditya Prasad Ajay Mathur Abhijit Bose Chief Compliance Officer Head – Collections & Commercial Vehicles Head – Retail Assets & Strategic Alliances Saudi Investment Bank, Axis Bank, State Bank CGSL & Citibank – 21 yrs exp. Standard Chartered Bank, Citibank, Eldeco of India – *
Slide 40: Ratings
Ratings Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2012 2013 2013 2013 2014 2015 Crisil Long Term BBB A-/Stable A-/Stable A-/Stable A- A- +/Stable /Positive /Positive Short Term A1 A1+ A1+ A1+ A1+ Fixed Deposits - - - A1+ A1+ A1+ Brickwork Long Term BWR A- BWR A- BWR A- BWR A- BWR A- BWR A- /St
Slide 41: Thank you
Thank you To receive investor updates from DCB Bank Ltd., write in at investorrelations@dcbbank.com . Do let us know of any change in your contact details on the same email ID. 41 DCB Bank Limited