Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q3 FY2012 Earnings Presentation
31 slides from Dcb Bank's earnings presentation, January 2012
Slide 1: Investor Presentation – Q3 FY 2012
Investor Presentation – Q3 FY 2012 January 2012
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: DCB Bank – Overview
DCB Bank – Overview DCB Bank – at a y 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 y D
Slide 4: Contents: Financial Performance
Contents Financial Performance 4 Private & Confidential
Slide 5: Current Quarter Highlights
Current Quarter Highlights INR mn Q3 FY 2012 Q3 FY 2011 Inc / (Dec) Net Profit 156 82 91.4% Total Income 859 753 14.1% Operating Profit 225 206 9.1% Provisions (69) (125) 44.8% INR mn December 31, 2011 December 31, 2010 Inc / (Dec) Deposits 61,912 56,506 9.6% CASA 20,478 18,704 9.5% Advances 43,064
Slide 6: Investment in Front Line for growth
Investment in Front Line for growth Operating Income INR mn 3,487 3,173 3,012 2,491 1,861 1,972 1,891 1,420 733 753 794 822 859 1,626 732 753 1,201 1,071 433 464 493 502 1,121 519 591 597 299 269 260 292 234 231 262 FY08 FY09 FY10 Q1 F Y11 Q2 FY11 Q3 FY 11 Q4 FY11 FY11 Q1 F Y12 Q2 FY12 Q3 FY 12 Othe
Slide 7: Consistent Operating Performance
Consistent Operating Performance Operating Profit INR mn 1,0 9 6 860 753 483 226 208 206 220 16 5 209 225 F Y08 F Y09 F Y 10 Q 1 F Y 11 Q 2 F Y 11 Q 3 F Y 11 Q 4 F Y 11 F Y 11 Q 1 F Y 12 Q 2 F Y 12 Q 3 F Y 12 Provisions INR mn 1,6 3 4 1,2 6 8 7 13 646 255 16 0 12 4 10 6 77 75 69 F Y08 F Y09 F Y 10 Q
Slide 8: Bottom Line Improvement
Bottom Line Improvement Net Profit / Loss * INR mn 383 113 214 48 82 133 156 88 (29) (785) (881) FY08 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11 Q1 FY12 Q2 FY12 Q3 FY12 * Net Profit / (loss) represents post tax numbers 8 Private & Confidential
Slide 9: Consistent Growth in Strategic Business Lines
Consistent Growth in Strategic Business Lines Mar 31, Mar 31, Mar 31, Mar 31, Dec 31, INR mn 2008 2009 2010 2011 2011 CASA 14,743 14,411 16,927 19,755 20,478 Retail Term Deposits 17,502 18,132 23,056 27,085 31,946 Mortgages (sourced & 2,464 2,626 4,118 10,811 15,102 acquired) SME + Micro SME 1,673 4
Slide 10: Calibrated Growth in Balance Sheet
Calibrated Growth in Balance Sheet Total Assets INR mn 82,610 80,478 63,733 69,377 69,889 73,723 76,220 75,775 59,430 61,367 Mar 31, 2008 Mar 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010 Dec 31, 2010 Mar 31, 2011 Jun 30, 2011 Sep 30, 2011 Dec 31, 2011 Net Advances* INR mn 43,064 34,597 34,786 38,
Slide 11: 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 rtgages Others 8% C V/ C E/ ST VL 12% C V/ C E/ ST VL 17% Others 8% P erso nal Lo ans 5% SM E+M SM E 3% 3% 14% P erso nal Lo ans SM E+M SM E 10% A IB 17% 25% A
Slide 12: Build Stable Deposit Base – Focus on CASA
Build Stable Deposit Base – Focus on CASA Deposits INR mn INR mn 4,714 3,178 4,271 3,173 1,652 1,799 2,601 1,510 3,957 1,590 37,136 38,256 31,220 34,301 36,002 33,746 36,712 41,735 28,101 29,356 16,927 18,422 18,998 18,704 19,755 19,920 20,765 20,478 14,743 14,411 M ar 31, 2008 M ar 31, 2009 M ar 31
Slide 13: Deposit Per Branch
Deposit Per Branch Retail CASA & Retail Term Deposits INR mn 31,946 30,250 26,863 27,085 30,729 23,056 23,830 25,694 17,673 18,132 17,763 18,455 18,762 19,838 19,387 13,884 13,248 15,978 16,972 17,525 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
Slide 14: Strong Provision Coverage
Strong Provision Coverage Key Ratios 8.78% 8.69% 8.47% 96.68% 100.00% 100.00% 100.00% 100.00% 93.99% 89.88% 84.73% 87.64% 85.55% 87.89% 87.38% 82.50% 79.64% 7.61% 76.66% 75.19% 70.04% 7.07% 5.90% 66.20% 5.75% 5.67% 53.34% 5.86% 48.40% 3.88% 1.49% 3.11% 2.53% 1.19% 0.97% 1.86% 1.03% 0.66% 1.30% 0.97%
Slide 15: Yield, Cost of Funds and NIM
Yield, Cost of Funds and NIM Net Interest Margin 3.14% 3.13% 3.41% 3.37% 3.12% 3.15% 3.13% 3.10% 3.03% 2.86% 2.79% FY08 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Yield on Advances, Base Rate & Cost of Funds 13 .5 8 % 13 .3 2 % 12 .3 3 % 12 .9 3 % 11.7 2 % 11.8 6 % 12 .6
Slide 16: Capital Adequacy Ratios
Capital Adequacy Ratios Capital Adequacy Ratios – Basel II 14 .8 5 % 13 .3 0 % 13 .8 0 % 13 .5 7 % 13 .3 9 % 13 .2 5 % 12 .9 2 % 13 .10 % 13 .0 0 % 2 .9 2 % 1.8 0 % 2 .4 0 % 2 .3 1% 2 .2 6 % 2 .15 % 1.8 7 % 1.8 5 % 1.8 5 % 11.10 % 11.5 0 % 11.9 3 % 11.4 0 % 11.2 6 % 11.13 % 11.0 7 % 11.2 3 % 11.15 %
Slide 17: Other Income
Other Income INR mn FY 08 FY09 FY10 Q3FY11 FY11 Q1FY12 Q2FY12 Q3FY12 Commission, exchange and 845 768 664 165 661 170 173 202 brokerage Sale of investments 15 20 178 57 253 48 25 18 Sale of land, buildings and 102 47 (3) (1) 11 (14) (1) (0) other assets Exchange transactions 229 224 64 17 90 21 9 19
Slide 18: Treasury
Treasury INR mn Mar 31, 2008 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Dec 31, 2011 SLR 17,145 12,675 15,789 17,512 21,015 Non-SLR 4,201 3,542 4,390 5,439 6,231 Total Investments * 21,346 16,217 20,179 22,951 27,246 HTM 7,688 10,808 16,890 18,847 20,195 AFS 12,585 4,630 3,263 3,029 4,689 HFT 1,072 779
Slide 19: Balance Sheet
Balance Sheet Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, INR mn 2008 2009 2010 2010 2010 2010 2011 2011 2011 2011 Shareholder’s Equity 6,343 5,957 5,990 5,960 6,003 6,086 6,187 6,273 6,405 6,561 Deposits 60,749 46,469 47,873 51,152 54,951 56,506 56,102 59,805 62,
Slide 20: Profit & Loss
Profit & Loss Q1 Q2 Q3 Q4 Q1 Q2 Q3 INR mn FY08 FY09 FY10 FY11 FY11 FY11 FY11 FY11 FY12 FY12 FY12 Net Interest Income 1,861 1,972 1,420 433 464 493 502 1,891 519 591 597 Other Income 1,626 1,201 1,071 299 269 260 292 1,121 234 231 262 Operating Income 3,487 3,173 2,491 732 733 753 794 3,012 753 822 8
Slide 21: Contents: Business Strategy
Contents Business Strategy 21 Private & Confidential
Slide 22: 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) Gurgaon (1) GUJARAT: (16) Ahmedabad (3) KARNATAKA: (4) Ankleshwar (1) Bengaluru (4) Bhuj (
Slide 23: 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 C
Slide 24: 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 p
Slide 25: Contents: Overview
Contents Overview 25 Private & Confidential
Slide 26: 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 C
Slide 27: Strong Investor Profile
Strong Investor Profile Shareholding Pattern (December 31, 2011) Key non-promoter shareholders Al Bateen Investment Co. LLC: 3.69% *AKFED and PJI 23.06% Institutions Tata Capital Ltd.: 3.29% 7.84% Others (Non- Institutions)** DCB Investments Ltd. (SVG Capital): 2.65% 11.18% HDFC Ltd.: 2.02%
Slide 28: 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 e
Slide 29: Strong Management Team
Strong Management Team Murali M. Natrajan Managing Director & CEO Standard Chartered Bank, Citibank, American Express – *28 yrs exp. R. Venkattesh Bharat Sampat Praveen Kutty Head - HR, IT & Operations Chief Financial Officer Head – Retail& SME Banking Standard Chartered Bank, ANZ ABN Amro Bank, Sta
Slide 30: Ratings
Ratings Feb 28, 2009 Jul 31, 2009 Sep 30, 2011 CRISIL - Long - BBB/Stable BBB +/Stable Term - Short P1 P1 A1 Term FITCH BBB/Negative BBB/Negative BBB/Stable Brickworks - BWR A-/Stable BWR A-/Stable 30 Private & Confidential
Slide 31: Thank you
Thank you 31 Private & Confidential