Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q1 FY2015 Earnings Presentation
39 slides from Dcb Bank's earnings presentation, July 2014
Slide 1: Investor Presentation – Q1 FY 2015
Investor Presentation – Q1 FY 2015 July 2014 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 p
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 is the only co-operative bank in India to have been converted into a private sector commercial
Slide 4: Financial Performance
Financial Performance DCB Bank Limited 4
Slide 5: Highlights
Highlights Adjusted 1 2 INR mn Q1 FY 2015 Q1 FY 2014 Q4 FY 2014 Q1 FY 2015 Net Profit 446 338 428 391 Total Income 1,735 1,431 1,282 1,335 Operating Profit 812 515 513 502 Provisions Other than Tax (229) (126) (85) (110) Cost to Income Ratio 53.2% 64.0% 60.0% 62.5% INR mn June 30, 2014 June 30, 2013
Slide 6: Growth in Profits
Growth in Profits Net Profit / Loss * INR mn 1,514 1,021 551 214 (785) (881) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 2 1 446 428 391 364 331 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 *Net Profit / (Loss) represents post tax numbers 1: Includes one-off Treasury Gains of INR 117 mn 2: Includes I
Slide 7: ROA and ROE
ROA and ROE ROA 1.39% 1.31% 1.06% 0.68% 0.32% FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Q1 FY 2015 (1.25%) (1.30%) ROE 14.04% 15.21% 11.13% 8.38% 3.52% FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Q1 FY 2015 (15.14%) (14.52%) 7 DCB Bank Limited
Slide 8: Net Interest Income
Net Interest Income Net Interest Income INR mn 3,684 2,844 2,277 1,972 1,891 1,416 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 1 1,390 1,000 913 940 831 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 1: Includes INR 304 mn impact of Interest on Tax Refund 8 DCB Bank Limited
Slide 9: Other Income
Other Income Other Income INR mn 1,387 1,201 1,170 1,075 1,121 1,004 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 1 451 335 345 328 273 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 1: Includes one-off Treasury Gains of INR 117 mn 9 DCB Bank Limited
Slide 10: Staff Cost
Staff Cost Staff Cost INR mn 1,571 1,379 1,246 1,044 1,064 881 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 463 395 411 388 377 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 10 DCB Bank Limited
Slide 11: Other Cost
Other Cost Other Cost INR mn 1,620 1,376 1,374 1,197 1,127 1,088 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 459 1 422 392 396 410 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 1: Includes impact of INR 7 mn related to Income Tax Refund 11 DCB Bank Limited
Slide 12: Operating Income
Operating Income Operating Income INR mn 5,071 4,014 3,173 3,281 3,012 2,491 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 1,735 2 1,282 1 1,335 1,268 1,186 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 1: Includes one-off Treasury Gains of INR 117 mn 2: Includes INR 304 mn impact of Interest on Tax Ref
Slide 13: Cost to Income
Cost to Income Operating Cost INR mn 76.27% 80.62% 74.45% 2,753 3,191 71.43% 2,420 2,443 68.58% 2,152 62.93% 2,008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 66.00% 63.44% 62.43% 922 66.15% 833 63.98% 769 784 805 59.97% 53.17% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Without impact of one-off Tr
Slide 14: Operating Profit
Operating Profit Operating Profit INR mn 1,880 1,261 860 838 753 483 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 2 812 1 513 502 464 401 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 1: Includes one-off Treasury Gains of INR 117 mn 2: Includes INR 297 mn impact of Interest on Tax Refund 14 DCB Bank Li
Slide 15: Provisions
Provisions *Provisions INR mn 1,634 1,268 646 366 287 241 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 366 1 100 111 85 70 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 *Provisions include provisions for NPAs, standard assets, floating provision, income and wealth tax, other assets, restructured advanc
Slide 16: Business Trends
Business Trends Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Mar 31, Jun 30, INR mn 2009 2010 2011 2012 2013 2013 2014 2014 CASA 14,380 16,927 19,755 20,347 22,716 22,880 25,813 26,782 Retail TD1 18,132 23,056 27,085 34,320 43,845 44,455 55,945 58,395 NRI Total 1,569 1,632 1,815 3,084 5,222 5,606
Slide 17: Balance Sheet
Balance Sheet Total Assets INR mn 129,231 128,838 112,788 109,933 86,769 74,129 59,430 61,367 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Jun 30, 2013 Mar 31, 2014 Jun 30, 2014 Net Advances* INR mn 81,402 82,914 65,861 64,715 52,844 42,817 32,740 34,597 Mar 31, 2009 Mar 31, 2010
Slide 18: Diversified Portfolio
Diversified Portfolio Portfolio* as on Jun 30, 2013 Portfolio* as on Mar 31, 2014 Portfolio* as on Jun 30, 2014 *AIB – Agri & Inclusive Banking, SME - Small & Medium Enterprises, MSME - Micro SME 18 DCB Bank Limited
Slide 19: Build Stable Deposit Base
Build Stable Deposit Base Deposits INR mn INR mn 14,018 15,491 7,660 64,719 8,594 61,948 2,208 53,262 51,722 2,601 1,590 40,801 3,957 33,746 29,356 28,101 22,716 22,880 25,813 26,782 19,755 20,347 14,411 16,927 Mar 3 1, 2009 Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Jun 3 0, 2013 Mar 31, 2
Slide 20: Deposits Per Branch
Deposits Per Branch Retail CASA & Retail Term Deposits INR mn 83,157 79,442 64,730 66,153 58,395 55,945 53,482 43,845 44,455 45,540 34,320 39,034 31,380 27,085 23,056 18,132 19,162 20,885 21,698 23,497 24,762 15,978 18,455 13,248 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Jun 3
Slide 21: Strong Provision Coverage
Strong Provision Coverage Key Ratios 8.78% 8.69% 91.17% 87.64% 85.71% 84.56% 80.54% 79.07% 70.04% 5.85% 53.34% 4.40% 3.18% 3.41% 3.11% 3.88% 1.69% 1.78% 0.96% 0.84% 0.57% 0.75% 0.97% 0.91% Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Jun 30, 2013 Mar 31, 2014 Jun 30, 2014 Coverag
Slide 22: Yield, Cost of Funds and NIM
Yield, Cost of Funds and NIM Net Interest Margin 3.71% 3.59% 3.56% 3.34% 3.44% 3.25% 3.13% 2.86% 2.79% FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q1 FY14 Q4 FY14 FY 2014 Q1 FY15 Yield on Advances, Base Rate & Cost of Funds 13.58% 12.75% 12.94% 12.84% 12.83% 12.33% 12.60% 12.74% 11.12% 10.50% 10.50% 10.
Slide 23: Capital Adequacy
Capital Adequacy Capital Adequacy Ratios – Basel III 14.85% 15.41% 1.60% 13.61% 13.75% 13.71% 13.63% 13.30% 2.92% 13.25% 0.91% 0.85% 0.99% 0.86% 1.80% 2.15% 13.81% 12.84% 12.86% 12.77% 11.93% 12.62% 11.50% 11.10% Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Jun 30, 2013 Mar 31. 2
Slide 24: Other Income
Other Income INR mn FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q1 FY14 Q4 FY 14 FY 2014 Q1FY15 Commission, exchange and 780 682 683 786 893 224 280 1,011 260 brokerage Sale of 20 178 253 118 139 *160 26 *216 43 investments Sale of land, buildings and 47 (3) 11 (28) (17) (2) (2) (4) (0) other assets Exc
Slide 25: Treasury
Treasury Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, INR mn 2009 2010 2011 2012 2013 2014 2014 SLR 12,675 15,789 17,512 20, 219 24,332 28,072 28,555 Non-SLR 3,542 4,390 5,439 4,959 9,255 8,270 6,847 Total 16,217 20,179 22,951 25,178 33,587 36,342 35,402 Invtmnts* HTM 10,808 16,890 18,847
Slide 26: Balance Sheet
Balance Sheet Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Mar 31, Jun 30, INR mn 2009 2010 2011 2012 2013 2013 2014 2014 Shareholder’s Equity 5,983 6,011 6,215 8,614 10,031 10,457 11,540 11,990 Deposits 46,469 47,873 56,102 63,356 83,638 83,196 103,252 105,519 Borrowings 1 4,455 5,035 8,607 11,2
Slide 27: Profit & Loss
Profit & Loss INR mn FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Net Interest Income 1,972 1,416 1,891 2,277 2,844 3,684 Other Income 1,201 1,075 1,121 1,004 1,170 1,387 Operating Income 3,173 2,491 3,012 3,281 4,014 5,071 Operating Expenses (2,420) (2,008) (2,152) (2,443) (2,753) (3,191) Operat
Slide 28: Profit & Loss
Profit & Loss 1 Adjusted INR mn *Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q1 FY15 Net Interest Income 831 913 940 1,000 1,390 1,086 Other Income 451 273 328 335 345 345 Operating Income 1,282 1,185 1,268 1,335 1,735 1,431 Operating Expenses (769) (784) (804) (833) (922) (915) Operating Profit 513 401
Slide 29: Business Strategy
Business Strategy 29 DCB Bank Limited
Slide 30: Steadily growing Branch Network across India
Steadily growing Branch Network across India Branch Network ANDHRA PRADESH: (14) CHATTISGARH : (6) GOA: (4) GUJARAT: (21) HARYANA: (2) KARNATAKA: (4) KERALA: (1) MADHYA PRADESH: (9) MAHARASHTRA: (35) Mumbai & Its Suburbs (27) NEW DELHI: (6) ODISHA: (13) PUNJAB: (5) Existing Branches 134 RAJASTHAN: (
Slide 31: 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* Wor
Slide 32: 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 33: Overview
RE 0c cank Overview 33 DCB Bank Limited
Slide 34: 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 35: Strong Investor Profile
Strong Investor Profile Shareholding Pattern (June 30, 2014) Key non-promoter shareholders Tano Mauritius India FVCI II : 4.76% WCP Holdings III : 4.69% *AKFED and PJI 18.45% Ambit Corporate Finance Pvt. Ltd.: 4.18% ***Institutions 29.10% TVS Shriram Growth Fund India : 2.50% Others (Non- Tata Capit
Slide 36: 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 upliftment of the poor. Altaf Jiwani With expertise in Foreign Exchange, Risk Management and Trade F
Slide 37: Strong Management Team
Strong Management Team Aditya Prasad Abhijit Bose Head - Credit Head – Retail Assets & Strategic Alliances Ajay Mathur Saudi Investment Bank, Axis Bank, State Bank Standard Chartered Bank, Citibank, Eldeco Head – Collections & Commercial Vehicles of India – *28 yrs exp. Housing Industries & GIC Hous
Slide 38: Ratings
Ratings Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Jun 30, 2011 2012 2013 2013 2013 2014 CRISIL - Long BBB BBB A- A- A- A- Term +/Stable +/Positive /Stable /Stable /Stable /Stable - Short A1 A1 A1+ A1+ A1+ A1+ Term - Fixed - - - - A1+ A1+ Deposits BWR A- BWR A- BWR A- BWR A- BWR A- BWR A- Brickworks /S
Slide 39: Thank you
Thank you 39 DCB Bank Limited