Dhanlaxmi Bank Ltd · NSE:DHANBANK
Dhanlaxmi Bank — Investor Presentation (December 2009)
30 slides from Dhanlaxmi Bank's investor presentation, Dec 3, 2009
Slide 1: Dhanalakshmi Bank
Dhanalakshmi Bank December 3, 2009
Slide 2: Origin
Origin Nov 14, 1927 Trichur Capital of 7 employees 11,000
Slide 3: Milestones
Milestones Rights issue 1st 2002 ATM Public 2000 issue 100 1996 branches SCB status 1980 Br. o/s Kerala 1977 1st Branch 1975 Incorp. 1937 1927
Slide 4: The distant past…
The distant past… • Dependency in Kerala • Banking business • Infrastructure • Employees • Reliance on SME segment • Higher NPA level • Low employee base and Higher age of employees • 207 branches and 72 ATMs
Slide 5: South - 93% Kerala - 67% Regional Bank
South - 93% Kerala - 67% Regional Bank All India Bank Presence in 600 locations
Slide 6: The Turning Point…
The Turning Point… • As per RBI guidelines • Net worth of Rs. 300 crores • No single shareholder with control in excess of 10% • Decline in holding by the largest shareholder from 37% to 10% • Change in Board of Directors with induction of highly reputed professionals • Rights issue made in April, 2
Slide 7: Board of Directors
Board of Directors Name Age Total Work Experience Mr. G.N. Bajpai 66 He has had a distinguished career in the Indian financial sector and is currently Director of Future Generali Life Insurance, Future Generali Insurance, Invent ARC Private Limited, Informerics Valuation and Rating Private Limited.
Slide 8: Board of Directors (continued…)
Board of Directors (continued…) Name Age Total Work Experience Mr. S. 64 Retired as Deputy Managing Director of SBI after serving them 36 years. An Santhanakrishnan independent Director on Board. He was also the executive Chairman of Credit Information Bureau (India) Limited (CIBIL). Mr. K. S. Reddy
Slide 9: Large Profitable “A” Rated Bank
Vision Large Profitable “A” Rated Bank Profitable A Rating Large
Slide 10: Mission: To be amongst the top 5 Private Sector Banks
Mission Profits To be amongst the top 5 Private Sector Banks Asset Size Quality Respect Regulatory Framework Branch Network
Slide 11: Objective of First phase
Objective of First phase • To de-risk the existing portfolio • To build platform • To create a team • To incorporate Next Generation Technology • In essence to build firm foundation for future growth
Slide 12: The Journey so far … Last 12 months
The Journey so far … Last 12 months • De-risking the portfolio by • Increasing corporate book • Entry into well known corporate houses • High volume, low margin, less risky portfolio
Slide 13: The Journey so far … Last 12 months
The Journey so far … Last 12 months • Building foundation by • Pan India presence - 66 new branches and 380 ATMs • New banking channels - Internet, call centre etc. • More than doubled employee base (>2000 hired in FY2010) • New Brand identity
Slide 14: The Journey so far … Last 12 months
The Journey so far … Last 12 months • Technology Initiatives • Next generation technology under implementation
Slide 15: The Journey so far … Last 12 months
The Journey so far … Last 12 months • Tier II capital of Rs.150 crores to high networth NRIs • ATM outsourced to AGS adopting a use and pay model • Insurance tie up with Bajaj Allianz for life and non life products • SEBI approval for commencement of Merchant Banking business • RBI approval for incr
Slide 16: The Journey so far … Last 12 months
The Journey so far … Last 12 months • ICRA and CARE upgraded rating for Tier II capital by two notches to A (minus) • Top notch PR1+ rating from CARE for Certificate of Deposit • Recognised as “India’s Fastest Growing Mid-size Bank” by Business Today on the basis of a KPMG survey • Awarded Best bank
Slide 17: Shareholding Pattern as on Sept 30, 2009
Shareholding Pattern as on Sept 30, 2009 Stakeholders (%) Resident Individuals 43.55 Foreign Institutional Investors 23.30 Corporate Bodies 23.34 Non Resident Indians 5.46 Banks / Financial Institutions 1.06 Others * 3.29 Total 100.00 * Includes insurance companies, Mutual funds, Trusts and Clearing
Slide 18: Going forward … Immediate plans
Going forward … Immediate plans • To establish presence in segments such as • Asset Management • Venture Funds • No Manufacturing of Insurance products
Slide 19: Going forward … Over next 5 years
Going forward … Over next 5 years • Specialised Bank ` • Capital plans ` • Fee based distribution ` • Supply chain management
Slide 20: Financial Information
Financial Information
Slide 21: Profit and Loss statement
Profit and Loss statement Rs. in crores Particulars H1 - 2010 FY 2009 Interest Income 244.3 408.4 Interest Expenses 186.8 286.8 Net Interest Income 57.5 121.6 Non Interest Income 42.4 79.4 Operating Expenses 75.8 113.1 - Of which Staff costs 44.2 62.6 Provisions 4.2 8.2 Profit before tax 19.9 79.7 N
Slide 22: Credit - Deposit Growth
Credit - Deposit Growth Rs. in crores Sept 30, Sept 30, Y-O-Y Mar 31, Particulars 2009 2008 growth 2009 CASA 1,244.9 1,209.5 3% 1,207.6 CASA (%) 22% 31% - 24% Term Deposits 4,384.6 2,726.8 61% 3,761.1 Total Deposits 5,629.4 3,936.2 43% 4,968.8 Total Advances (net) 4,001.8 2,490.4 61% 3,196.1 • Depos
Slide 23: Performance Ratios
Performance Ratios Particulars Sept 30, 2009 Mar 31, 2009 Capital Adequacy Ratio Basel I (%) 14.93 14.44 Basel II (%) 15.90 15.38 Gross NPAs (Rs. in cr.) 70.26 64.43 Net NPAs (Rs. in cr.) 34.43 28.24 Gross NPA Ratio (%) 1.73 1.99 Net NPA Ratio (%) 0.86 0.88
Slide 24: Performance Ratios (contd.)…
Performance Ratios (contd.)… Particulars H1 - 2010 FY-2009 Net Interest Margin (%) 2.12 2.97 Cost / Income ratio (%) 75.82 56.26 Credit Deposit Ratio (%) 74.17 65.31 Return on Equity (%) 7.41 13.53 Return on Assets (%) 0.54 1.21
Slide 25: Best Change Management Story
Best Change Management Story
Slide 26: Thank You
Thank You
Slide 27: Appendix
Appendix
Slide 28: Specialised Bank - NO
Specialised Bank - NO International 10% Retail 25% Corporate 40% SME 25%
Slide 29: Capital plans to fund its ambitious growth…
Capital plans to fund its ambitious growth… • Overall requirement of Rs. 3,000 crores next 5 years • To raise Rs. 200 crores of Tier II capital by March 2010 • No capital dilution till March 2010
Slide 30: Fee based distribution…
Fee based distribution… • Leverage our Multichannel distribution network • Third party products Distribution • Mutual Fund, Insurance products Bullion, IPO’s, Demat, G-sec, E-broking, etc. • Target 35% of the revenue from fee income
Dhanlaxmi Bank — Investor Presentation (December 2009) on 6ix