Dhanlaxmi Bank Ltd · NSE:DHANBANK
Dhanlaxmi Bank — Q1 FY2014 Earnings Presentation
25 slides from Dhanlaxmi Bank's earnings presentation, June 2013
Slide 1: Investor Presentation Q1FY14 Financials
Investor Presentation Q1FY14 Financials
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Dhanlaxmi Bank (the “Bank”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published
Slide 3: Overview
Overview Key Milestones Achieved Overview of Distribution Network Overview of Organization Structure Profile of Board of Directors and Key Management Personnel Shareholding pattern Summary of Operational Performance Summary of Financials Modern Information Technology Infrastructure & Systems Way For
Slide 4: Key Milestones Achieved
Key Milestones Achieved 2013: Raised Rs. 1052 million of Equity through a combination of Qualified Institutional Placement and Preferential Allotment issue. 2012: Awarded the Asian Banker Technology Implementation award - International award for Best branch automation 2011: Awarded the “Best M
Slide 5: Broad based Distribution Network
Broad based Distribution Network As of June 30, 2013 Bank has 676 customer outlets which Branches Network – State-wise Branches includes 280 branches, 396 ATMs (As on June 30, 2013) As of June 30, 2013 Bank is present in 15 states/UTs with 280 branches : Metro Branches – 62 Urban Branches –
Slide 6: Overview of Organization structure
Overview of Organization structure BOARD MD & CEO Chief Secretary to Head – Head- Chief Head – Head – Head – Head – Head – Head – Compliance the Board & Business Human Financial Treasury Integrated Information Legal Inspection Vigilance & Credit Company Devt. & Resources Officer Risk Mgmt. Technolog
Slide 7: Profile of Board of Directors
Profile of Board of Directors Name Designation Experience & Other Directorships Mr. T.Y. Prabhu Part-time Headed Oriental Bank of Commerce as Chairman & Managing Director and was Chairman previously Executive Director of Union Bank of India. Was appointed by RBI as a member of the Advisory Group on
Slide 8: Profile of Board of Directors
Profile of Board of Directors Name Designation Experience & Other Directorships Mr. K. Jayakumar Independent Mr. K. Jayakumar, IAS (Retd) has served as Secretary to Government in sectors like Director Agriculture & Tourism and retired as Chief Secretary to the Government of Kerala. He was also a Dir
Slide 9: Profile of Key Management Personnel
Profile of Key Management Personnel Designation Experience Name Mr. P.S. Ravikumar Chief Compliance & Experience of 35 years with Dhanlaxmi Bank in various departments Credit Officer Currently he is the Chief Credit Officer of the Bank. Also headed functions of Inspection & Vigilance, Operatio
Slide 10: Shareholding pattern
Shareholding pattern As of June 30, 2013 Institutional Investors with shareholding greater than 1% (As on June 30, 2013) Others Shareholder % Stake (Banks/FIs etc) 1.5% JUPITER SOUTH ASIA INVESTMENT COMPANY LTD. 4.25% Corporates 17.3% WELLINGTON MANAGEMENT COMPANY 3.42% COLLEGE RETIREMENT EQUITIES F
Slide 11: Business position
Business position Advances and Deposits Deposits Composition Advances Deposits 120 140 Term Deposits CASA 111.4 112.0 112.1 120 100 89.8 86.9 88.8 100 78.7 77.8 80 74.9 80 INR Bn INR Bn 60 60 40 40 23.0 25.2 23.3 20 20 0 0 Q1FY13 Q4FY13 Q1FY14 Q1FY13 Q4FY13 Q1FY14 11
Slide 12: Composition of Advances Portfolio
Composition of Advances Portfolio As of Q1FY13 As of Q4FY13 As of Q1FY14 SME, 12% SME, 17% SME, 17% Wholesale, Wholesale, Retail, 61% Wholesale, Retail, 58% 22% Retail, 66% 22% 25% The Bank continues to maintain its focus on reducing the low yielding Wholesale advances and improving the share of Ret
Slide 13: Business productivity
Business productivity Business per Branch Business per Employee 75.0 73.0 73.3 700.0 683.7 677.8 70.0 675.0 667.7 65.0 63.2 INR Mn INR Mn 650.0 60.0 625.0 55.0 600.0 50.0 Q1FY13 Q4FY13 Q1FY14 Q1FY13 Q4FY13 Q1FY14 13
Slide 14: Operational Efficiency & Profitability
Operational Efficiency & Profitability Operating Profit Profit After Tax 450.0 450.0 356.3 350.0 350.0 286.6 250.0 250.0 INR Mn INR Mn 150.0 108.1 150.0 50.0 50.0 35.8 Q1FY13 Q4FY13 Q1FY14 Q1FY13 Q4FY13 Q1FY14 (50.0) (50.0) (89.6) (150.0) (118.1) (150.0) 14
Slide 15: Yield on Advances, Cost of Deposits and NIM
Yield on Advances, Cost of Deposits and NIM Yield on Advances and Cost of Deposits Net Interest Margin (NIM) Yield on Advances Cost of Funds 4.0% 15.0% 14.0% 3.5% 13.26% 12.73% 13.0% 3.0% 12.11% 2.50% 2.5% 2.35% 12.0% 2.10% 11.0% 2.0% 10.0% 1.5% 9.19% 9.0% 8.61% 1.0% 8.28% 8.0% 0.5% 7.0% 0.0% Q1FY13
Slide 16: Cost Rationalization measures
Cost Rationalization measures Cost to Income Ratio & Total OPEX Employee Costs and Other OPEX 1100 106.0% 110.0% Employee Cost Other Costs 1000 1000 100.0% 900 900 87.7% 90.0% 800 700 800 80.0% INR Mn INR Mn 600 567 68.5% 700 70.0% 486 500 453 1052 404 400 369 600 60.0% 321 773 774 300 500 50.0% Q1F
Slide 17: Asset Quality
Asset Quality Gross NPA Net NPA 6.0% 6.0% 5.8% 4.8% 5.0% 5.0% 4.1% 4.0% 4.0% 3.0% 3.0% 3.4% 2.0% 1.4% 2.0% 1.0% 1.0% 0.7% 0.0% 0.0% Q1FY13 Q4FY13 Q1FY14 Q1FY13 Q4FY13 Q1FY14 17
Slide 18: NPA Management Approach
NPA Management Approach The Bank has taken all possible measures (as listed below) to counter the increasing trend in NPAs and aims to bring down the Gross NPA level significantly by the end of FY14: Central NPA monitoring system: Technology enabled for providing information about the problem acco
Slide 19: Risk Management Approach
RISK Management Approach The Bank has developed a comprehensive risk rating system that serves as a single point indicator of diverse risk factors of counterparty and for taking credit decisions in a consistent manner. The Bank presently has 14 rating/ scoring models covering Corporates, SME, Trader
Slide 20: Capital Adequacy
Capital Adequacy 12.00% 11.73% 11.50% 11.06% 11.00% 10.50% 10.00% 10.36% 9.50% 9.00% Q1FY13 Q4FY13 Q1FY14 The Bank raised Rs.354 million of Equity in Q4 of FY13 and Rs.698 million in Q1 of FY 14 through a combination of Qualified Institutional Placement (QIP) and Preferential Allotment issue which h
Slide 21: Summary of Financials – Profit & Loss Account
Summary of Financials – Profit & Loss Account (Figures in INR Million) Particulars Q1FY14 Q1FY13 FY13 Interest Income 3136 3439 13080 Interest Expenses 2501 2688 10316 NET INTEREST INCOME 635 750 2764 Other Income 247 212 1143 Operating Expenses 774 1052 3393 - Staff Cost 453 567 1868 - Other Expens
Slide 22: Summary of Key Ratios
Summary of Key Ratios Particulars Q1FY14 Q1FY13 FY13 Credit Deposit Ratio 66.82% 70.68% 69.42% CASA Ratio 20.75% 20.63% 22% Term Deposits 79.25% 79.37% 78% Gross NPA 5.78% 1.39% 4.82% Net NPA 4.10% 0.72% 3.36% Capital Adequacy Ratio (Basel II) 11.73% 10.36% 11.06% OPEX as a % of Total Income 22.9% 2
Slide 23: Modern Information Technology Infrastructure & Systems
Modern Information Technology Infrastructure & Systems All the operations at all Branches are under Core Banking Listed below are some of the key information technology packages System (CBS) already implemented: IT Solutions Client Operations Credit , Risk Upgraded CBS to the latest version with
Slide 24: Way Forward
Way Forward • Increasing the proportion of CASA Organizational Restructuring to Branch Centric Model Liability Strategy • Increasing Retail Deposits • Reducing the overall Costs of Funds • Improving CRAR by raising further Equity • Increase Priority Sector Advances • Focus on Gold Loans & Retail Adv
Slide 25: Thank You
| DhanlaxmiBank established 1927