Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q1 FY2024 Earnings Presentation
49 slides from Dcb Bank's earnings presentation, Jul 28, 2023
Slide 1: Cover letter to stock exchanges
Ref. No.CO:CS:RC:2023-24:124 July 28, 2023 BSE Limited, National Stock Exchange of India Limited, P J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Bandra (E), Mumbai – 400 051. Mumbai - 400 023. BSE Scrip Code No.: 532772 NSE SYMBOL: DCBBANK Dear Sirs, Sub: Investor Presentation
Slide 2: DCB Bank Limited Investor Presentation – Q1FY24
DCB Bank Limited Investor Presentation – Q1FY24
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: Q1FY2024 Highlights
Q1FY2024 Highlights Steady improvement in core fee income: INR 75 crores Q1FY2024 Credit cost: 0.28% Measured investments in front line + branch infrastructure: 436 Branches, 9 branches added in Q1FY2024 Strong capital adequacy ratio: 17.09% Advances growth: +18.99% Y-o-Y Continued granular loan boo
Slide 5: Performance Highlights – Q1FY2024
Performance Highlights – Q1FY2024 INR 54,974 crores INR 35,474 crores INR 43,009 crores ( +21.57% Y-o-Y ) ( +18.99% Y-o-Y ) ( +22.60% Y-o-Y ) Balance Sheet Size Advances Deposits INR 127 crores 3.26% 1.19% ( +30.66% Y-o-Y ) (Q1FY2023: 4.21%) (Q1FY2023: 1.82%) Profit After Tax Gross NPA Net NPA 25.97
Slide 6: Performance Highlights – FY2023
Performance Highlights – FY2023 INR 52,366 crores INR 34,378 crores INR 41,239 crores ( +16.91% Y-o-Y ) ( +18.15% Y-o-Y ) ( +18.87% Y-o-Y ) Balance Sheet Size Advances* Deposits INR 466 crores 3.19% 1.04% ( +61.93% Y-o-Y ) (FY2022: 4.32%) (FY2022: 1.97%) Profit After Tax Gross NPA Net NPA 26.42% 17.
Slide 7: About Us
About Us
Slide 8: About Us
About Us • New generation private sector bank 436 • To be the most innovative and responsive branches across 20 States and 2 Union neighborhood bank in India serving Territories entrepreneurs, individuals, and businesses Background Company Vision • Mortgage, MSME/SME, Agri and Gold Loan focus • Prom
Slide 9: MSME/SME Opportunity
MSME/SME Opportunity Number of working enterprises – 64 million, Employment – 111 million MSMEs play a pivotal role in the economic and social Urban 49%, Rural – 51% development of the country Manufacturing- 31%, Trade – 36%, Other services – 33% Robust Indian economy, MSMEs target market size and D
Slide 10: Business Strategy
Business Strategy 01 02 03 04 05 06 Target self-employed, Create a diversified, Limit Corporate, Focus on retail Rely mainly on Retail Target Tier 2 to Tier 6 MSME/SME, Retail secured and granular unsecured and lumpy Mortgages*, Deposits (CASA, Term locations segment portfolio exposures MSME/SME, Tr
Slide 11: Wide Range of Products
Wide Range of Products Retail and Agri & Inclusive Banking Deposit Products Cards Payments Advances – Focus on Secured Lending Third Party Distribution • Life Insurance • Home Loan • Kisan Credit Card • General Insurance • Current and Savings • ATM Card • Bill / Utility Payments • Gold Loan • Loan A
Slide 12: Way Forward
Way Forward Balance Sheet Asset Quality & Cost to Average Assets Margins Key Ratios (Deposits + Advances) Credit Costs / Cost to Income Ratio The Story so Far Balance Sheet as at 30-Jun-23: Diversified portfolio with focus on Gross NPA at 3.26% and Net NPA Cost to Average Assets at 2.73% for
Slide 13: Customer Service and Digital Initiatives
Customer Service and Digital Initiatives
Slide 14: Well Penetrated Distribution Network
Well Penetrated Distribution Network Head count ATMs Branches 9,905 436 9,649 9,579 409 427 396 418 385 Dec-22 Mar-23 Jun-23 Dec-22 Mar-23 Jun-23 Dec-22 Mar-23 Jun-23 Region wise Branches (%) State wise Branches (%) 19% 19% 16% 28% 4% 12% 4% 5% 25% 8% 5% 5% 8% 28% 6% 8% Metro Urban Semi Urban Rural
Slide 15: Digital Engagement / Technology Innovation
Digital Engagement / Technology Innovation Mobile Applications Technology Adoption • Mobile Banking for multilingual Retail customers with Interest certificate & Positive Pay feature enabled • Blockchain – adopted ‘Blockchain’ for use cases such as multi authentication for ATM management • Mobile Ap
Slide 16: Leading to Enhanced Digital Footprint
Leading to Enhanced Digital Footprint Digital Transactions (% of Total Transactions) Personal Internet Banking Transactions (In Lakhs) 94% 95% 94% 2.5 2.5 2.5 91% 92% 2.4 2.3 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 UPI Transactions (In Lakhs) Mobile Banking Transactions
Slide 17: Board & Management
Board & Management
Slide 18: Eminent Board of Directors
Eminent Board of Directors Amyn Jassani Farokh Subedar Iqbal Khan Independent Director Independent Director and Chairman Non-Independent Director A Fellow of the Institute of Chartered Accountants with more than 25 A Member of The Institute of Chartered Accountants of India and The years of experien
Slide 19: Experienced Team of Professionals
Experienced Team of Professionals Abhijeet Roy Abhijit Bose Ajay Mathur Ajit Kumar Singh Ashu Sawhney • Designation: Head - Admin • Designation: Chief Credit Officer • Designation: Head – Collections • Designation: Head – Treasury, • Designation: Head – Human Projects Properties & Procurement • Year
Slide 20: Business Update
Business Update
Slide 21: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 30-Jun-23) 35,474 1.1% 6.7% 7.8% 3.6% 2.5% 4.8% 34,378 0.6% 8.1% 1.8% 32,966 3.8% 23.2% 3.6% 31,291 3.4% 29,814 44.7% 7.5% Agri & Inclusive Banking (AIB) Mortgages Mortgages Tractors Corporate banking Gold Loan Kissan Credit Card MFI+BC Com
Slide 22: Agri & Inclusive Banking (AIB) – A Bank Within a Bank
Agri & Inclusive Banking (AIB) – A Bank Within a Bank Product Mix Headcount Branches 2,232 1,996 196 1,865 194 189 12% 2% Dec-22 Mar-23 Jun-23 Dec-22 Mar-23 Jun-23 32% 8% Region wise Branches State wise Branches 2% 16% 15% 26% 19% 5% 15% 39% 5% 15% 5% 7% 15% 11% 11% Mortgages Tractors Kissan Credit
Slide 23: Disbursements
Disbursements Product wise Disbursement Trends (INR crores) 5,073 4,622 290 4,598 376 249 276 4,237 349 301 232 3,616 423 1,364 222 999 1,036 388 954 566 679 540 622 791 614 838 976 968 384 715 1,665 1,370 1,395 1,453 1,111 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Mortgages SME + MSME Corporate banking AI
Slide 24: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (%) 43,009 41,239 11.2% 13.4% 13.5% 13.0% 20.1% 17.0% 34,692 10.4% 8.8% 7.8% 7.9% 30,370 8.2% 11.0% 29,704 28,435 70.0% 73.1% 70.6% 77.0% 80.6% 31,842 81.3% 30,343 25,411 21,625 23,851 22,917 78.4% 77.8% 78.7% 79.1% 71.7% 72.0% 11,
Slide 25: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 2.1% 1.4% 0.6% 1.0% 1.4% Instruments CRISIL 8.2% 7.3% 8.2% 8.1% 8.5% Long Term – Subordinated Debt AA-/Stable 64.1% 64.5% 66.0% 66.9% 66.7% Certificates of Deposits A1+ 25.6% 26.8% 25.2% 24.0% 23.4% Short – Term Fixed Deposits A1+ Jun-22 Sep-22 Dec-
Slide 26: Asset Quality
Asset Quality 4.21% 4.50% 69.48% 3.89% 72.83% 74.68% 79.34% 77.07% 3.62% 4.00% 3.19% 3.26% 3.50% 3.00% 2.50% 1.82% 2.00% 1.54% 1.37% 1.19% 1.50% 1.04% 1.00% 0.50% 0.00% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA Jun-22 Sep-22 Dec-2
Slide 27: Restructured Advances
Restructured Advances Dec-2022 Mar-2023 Jun-2023 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 1,876 248 1,628 1,779 229 1,550 1,618 209 1,409 NPA 321 165 156 309 166 143 361 176 185 Total 2,197 413 1,784 2,
Slide 28: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Jun-22 Sep-22 Dec-22 Mar-23 Apr-23 May-23 Jun-23 Business Loans (LAP) 98.3% 98.2% 98.6% 98.8% 97.7% 99.0% 98.4% Home Loans 99.1% 98.8% 98.9% 98.7% 98.0% 98.9% 98.6% CV Loans 93.8% 93.6% 94.8% 96.0% 91.8% 95.2% 93.0% Collection Effi
Slide 29: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 1.37% 1.19% 3.62% 1.04% 5.20% 3.13% 2.88% 3.99% 2.03% 3.26% 3.28% 3.19% Dec-22 Mar-23 Jun-23 Dec-22 Mar-23 Jun-23 Dec-22 Mar-23 Jun-23 Dec-22 Mar-23 Jun-23 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 30: Provisions – Balance Sheet
Provisions – Balance Sheet (INR crores) Dec-2022 Mar-2023 Jun-2023 Provision for Gross NPA 637 629 616 Floating Provision 133 137 141 Sub-total (A) 770 766 757 Specific Standard Asset Provision 18 20 16 Contingency provision on Restructured and Stressed Accounts 57 52 47 Restructured Standard Assets
Slide 31: Key Ratios (Q-o-Q)
Key Ratios (Q-o-Q) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.67% 11.55% 6.70% 6.61% 4.18% 10.99% 6.33% 4.02% 10.65% 10.81% 6.41% 3.88% 3.83% 5.90% 5.87% 5.98% 3.61% 6.00% 5.97% 6.05% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY2
Slide 32: Key Ratios (Y-o-Y)
Key Ratios (Y-o-Y) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.06% 11.05% 6.62% 3.93% 10.71% 6.49% 3.59% 3.56% 6.16% 6.11% 6.05% 6.03% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Cost to Average Assets Cost to Income Ratio Return on Assets Return on E
Slide 33: Capital Adequacy Ratio
Capital Adequacy Ratio Capital Adequacy Ratio (%) Risk Weighted Assets (INR crores) 29,088 18.47% 28,221 17.91% 17.55% 17.09% 26,860 3.03% 16.26% 2.97% 25,780 2.37% 2.31% 24,938 1.79% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Risk Weighted Assets / Total Assets (%) 15.44% 14.94% 15.18% 55.15% 55.11% 14.47%
Slide 34: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 91 122 107 77 75 99 70 95 92 65 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 33
Slide 35: Financial Highlights
| Financial Highlights
Slide 36: Profit & Loss Statement – Q1FY2024
Profit & Loss Statement – Q1FY2024 (INR crores) Q1FY2024 Q1FY2023 Y-o-Y Q4FY2023 Q-o-Q FY2023 Interest Income 1,238 949 1,179 4,200 Interest Expense 767 575 693 2,483 Net Interest Income 471 374 +26% 486 -3% 1,717 Other Income 107 92 +16% 122 -13% 409 - Commission, Exchange and Brokerage 75 65 91 30
Slide 37: Profit & Loss Statement – Q-o-Q
Profit & Loss Statement – Q-o-Q (INR crores) Q1FY2023 Q2FY2023 Q3FY2023 Q4FY2023 Q1FY2024 Interest Income 949 1,000 1,072 1,179 1,238 Interest Expense 575 589 626 693 767 Net Interest Income 374 411 446 486 471 Other Income 92 99 95 122 107 - Commission, Exchange and Brokerage 65 77 70 91 75 - Profi
Slide 38: Balance Sheet – Q-o-Q
Balance Sheet – Q-o-Q (INR crores) Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Capital & Liabilities Shareholders Equity 4,116 4,230 4,422 4,566 4,656 Deposits 35,081 36,960 39,506 41,239 43,009 Borrowings 3,999 3,515 3,825 4,118 4,730 Other Liabilities and Provisions 2,025 2,077 2,113 2,443 2,579 Total 45,2
Slide 39: Profit & Loss Statement – Trend
Profit & Loss Statement – Trend (INR crores) FY2019 FY2020 FY2021 FY2022 FY2023 Y-o-Y Interest Income 3,041 3,537 3,458 3,513 4,200 +20% Interest Expense 1,892 2,272 2,171 2,155 2,483 +15% Net Interest Income 1,149 1,265 1,287 1,358 1,717 +26% Other Income 344 388 445 452 409 -9% - Commission, Excha
Slide 40: Balance Sheet – Trend
Balance Sheet – Trend (INR crores) Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Y-o-Y Capital & Liabilities Shareholders Equity 3,116 3,422 3,759 4,049 4,566 +13% Deposits 28,435 30,370 29,704 34,692 41,239 +19% Borrowings 2,723 3,408 4,482 4,082 4,118 +1% Other Liabilities and Provisions 1,518 1,305 1,657 1,
Slide 41: Shareholding Pattern
Shareholding Pattern Key Non Promoter Shareholders % Shareholding as on June 30, 2023 Tata Mutual Fund - Tata Small Cap Fund* 4.94 5.96% HDFC Small Cap Fund 4.47 14.82% DSP Small Cap Fund 4.22 24.19% India Advantage Fund S4 I 4.00 Franklin India Smaller Companies Fund 3.35 Oman India Joint Investmen
Slide 42: ESG Initiatives
ESG Initiatives Environment Social Governance • Total number of employees volunteered: • Sustainable livelihood created & lives • The Board of Directors comprise executive 1,652 impacted (Cuttack district, Odisha): and non-executive directors 2,74,168 individuals • Total number of trees planted till
Slide 43: Digital Initiatives
Digital Initiatives Deliverables Management System (DMS) Gradatim Upgrade • The implementation of Phase III of the Deliverables Management System for a centralised Print and Deliverables Unit is done. • Revamped the Gradatim system with screen reduction and additional • Benefits envisaged: validatio
Slide 44: CSR Initiatives
CSR Initiatives Sustainable Livelihood Restoring Forest Collection of the waste by through aquaculture Landscape of Sanjay school to create awareness farming and production, Gandhi National Park and prevent pollution of the Odhisha (Mulund Range) Ganga river at Muni-Ki-Reti, through Assisted Uttrakh
Slide 45: CSR Initiatives
CSR Initiatives Village waste management through waste collection and segregation, West Bengal • Cleanup drive for 8 mile by locals. • Sustainable waste management training for Rajahatta villagers and others SHG group or village that they segregate waste at their village and has completed 4 communit
Slide 46: Sustainable Impact
Sustainable Impact Tree plantation to increase Rain water harvested for c & rural green cover urban sustainable livelihood 1,01,120 trees 99,84,00,000 liters Oxygen produced by trees Revival of village water 11,992 metric tonnes bodies and ponds Reduction of carbon from 2,17,800 sq. ft. atmosphere 2
Slide 47: Awards & Accolades
Awards & Accolades Won Gold Award in Product Innovation Category – Infosys Finacle Innovation Awards 2023 • DCB Zippi+ which is a Brand new native digital banking app, available for free on Android and iOS. Provides a fully digital onboarding experience for customers to start a relationship with DCB
Slide 48: Awards & Accolades
Awards & Accolades India’s Best Bank for CSR 2022 by Asiamoney and Euromoney Livelihood Improvement Project (LIP) through Integrated Watershed Management in Banki, Odisha. Project impact for 40,165 beneficiaries ACEF Asian Leaders Awards For Branding, Marketing and CSR for 2022 Livelihood Improvemen
Slide 49: 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 48 48