Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q3 FY2019 Earnings Presentation
34 slides from Dcb Bank's earnings presentation, Jan 16, 2019
Slide 1: Investor Presentation – Q3 FY 2019
Investor Presentation – Q3 FY 2019 January 16, 2019 DCB Bank Limited
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed, redistributed, disseminated or transmitted, directly or indirectly, in any manner. The information in this presentation is being provided by DCB Bank Limited (the “Bank”). This presentation has been
Slide 3: Consistent & Improving Performance
Consistent & Improving Performance Balance Sheet has almost doubled in three years Steadily improving profitability. Improvement in Cost / Income, ROA and ROE Granular and diversified loans portfolio, stable NIM and NPA. Continuing focus on Retail, MSME/SME and Agri Branch expansion initiati
Slide 4: Branch Network December 31, 2018
Branch Network December 31, 2018 This map is for representation purpose only DCB Bank Limited 4
Slide 5: Key Indicators - I
Key Indicators - I No. of Cost to Return on Return on INR mn Branches Balance Sheet Income Ratio Asset Equity Q3 FY 2019 331 343,818 55.22% 1.03% *12.64% Q2 FY 2019 328 325,102 58.88% 0.92% *11.13% Q1 FY 2019 323 311,779 60.26% 0.90% *10.75% FY 2018 318 302,221 59.79% 0.94% *10.31% FY 2017 262 240,4
Slide 6: Key Indicators - II
Key Indicators - II INR mn Q3 FY 19 Q2 FY 19 Q3 FY 18 Y-o-Y Deposits 275,090 261,687 212,959 29% Of which CASA 66,701 63,587 54,667 22% Of which Retail Term 148,636 135,624 110,031 35% - Of which NRI Term 16,705 16,340 14,037 19% Net Advances 228,884 220,688 185,952 23% INR mn Q3 FY 19 Q2 FY 19 Q3 F
Slide 7: Balance Sheet
Balance Sheet Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, INR mn 2013 2014 2015 2016 2017 2018 2018 2018 2018 Shareholder’s Equity 10,031 11,540 15,886 17,922 22,049 28,078 28,536 29,307 30,171 Deposits 83,638 103,251 126,091 149,260 192,892 240,069 250,324 261,687 275,09
Slide 8: Profit & Loss
Profit & Loss INR mn Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Net Interest Income 2,505 2,637 2,730 2,818 2,936 Other Income 749 849 828 735 945 - Commission, exchange 569 618 599 559 594 and brokerage - Profit on Sale of Investment 55 42 153 31 112 - Profit on Exchange Transaction 36 37 49 52 57 Ope
Slide 9: Profit & Loss
Profit & Loss INR mn FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Net Interest Income 3,684 5,082 6,195 7,971 9,954 Other Income 1,387 1,657 2,205 2,488 3,103 - Commission, exchange and 999 1,193 1,405 1,651 2,176 brokerage - Profit on Sale of Investment 225 277 423 454 454 - Profit on Exchange Transacti
Slide 10: Deposits Mix
Deposits Mix Deposits as on Dec 31, 2018 Residential Term *CASA Deposit 53% 24% Interbank Term Deposit 17% Non-Resident Term Deposit 6% * CASA includes NRI CASA 10 DCB Bank Limited
Slide 11: Advances Mix
Advances Mix Net Advances as on Dec 31, 2018 SME + MSME 12% Corporate Banking Mortgages 40% 15% AIB 19% Commercial Vehicle 7% Others 2% Construction Gold Loan 2% Finance 3% 11 DCB Bank Limited
Slide 12: NIM, Yield and Cost of Funds
NIM, Yield and Cost of Funds FY FY FY FY FY Q1 Q2 Q3 Year Ended 2013-14 2014-15 2015-16 2016-17 2017-18 FY 2019 FY 2019 FY 2019 Net Interest 3.56% 3.72% 3.94% 4.04% 4.16% 3.90% 3.83% 3.83% Margin Yield on 12.84% 12.63% 12.52% 12.03% 11.41% 11.21% 11.07% 11.26% Advances Cost of Funds 7.78% 7.78% 7.54
Slide 13: Non Performing Assets
Non Performing Assets Mar 31, Mar 31, Mar 31, Mar 31, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, 2014 2015 2016 2017 2017 2018 2018 2018 2018 Gross NPA 1.69% 1.76% 1.51% 1.59% 1.89% 1.79% 1.86% 1.84% 1.92% Net NPA 0.91% 1.01% 0.75% 0.79% 0.87% 0.72% 0.72% 0.70% 0.71% Provision 80.54% 74.66% 77.55% 73.8
Slide 14: Gross NPA Movement
Gross NPA Movement INR mn Q3 2017-18 Q2 2018-19 Q3 2018-19 FY 2017-18 Opening Balance 3,158 4,006 4,100 2,542 (+) Add Fresh Slippages 1,031 972 1,143 3,463 Addition to Existing 7 6 4 26 NPAs (-) Less Recoveries 307 327 279 985 Upgrades 269 373 351 1,034 Write Offs / Sacrifice 75 184 166 322 Closing
Slide 15: Treasury
Treasury Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Dec 31, INR mn 2012 2013 2014 2015 2016 2017 2018 2018 SLR 20,219 24,332 28,072 34,750 39,855 47,711 49,091 58,468 Non-SLR 774 5,552 4,236 4,872 3,478 10,468 13,099 16,689 Total 20,993 29,884 32,308 39,622 43,333 58,179 62,190 75,157 I
Slide 16: Capital Adequacy Ratios – Basel III
Capital Adequacy Ratios – Basel III Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, 2014 2015 2016 2017 2018 2018 2018 2018 CRAR 13.71% 14.95% 14.11% 13.76% 16.47% 15.55% 15.57% 15.45% -- Tier I 12.86% 14.21% 12.79% 11.87% 12.72% 12.02% 12.02% 11.93% -- Tier II 0.85% 0.74% 1.32% 1.89
Slide 17: Ratings
Ratings Sep 30, Dec 31, Mar 31, Mar 30, Mar 30, Dec 31, 2013 2014 2016 2017 2018 2018 ICRA Long Term – A+(hyb) A+(hyb) A+(hyb) A+(hyb) Subordinated - - (stable) (stable) (stable) (stable) Debt Short – Term - A1+ A1+ A1+ A1+ A1+ Fixed Deposits CRISIL Long Term – A+/ AA-/ Subordinated - - - - Stable S
Slide 18: Overview
a 0ce Bank Overview DCB Bank Limited
Slide 19: Who is our Customer? Opportunity
Self Employed / Small Business (For example: Trader, Commodity, Gold Trader, Vegetable Trader, Commission Agent, Retailer, Restaurant Owner, Caterer, Baker, Vending Machine Supplier , Consultant, Doctor, Contractor, Interior Decorator, Software Designer, Salon, Beauty Parlor, Printer, Electrical Cus
Slide 20: Our Customers
Our Customers 20 DCB Bank Limited
Slide 21: Dairy Farm Owner
DCB BANK Dairy Farm Owner
Slide 22: Hearing Aid Clinic Owner
Hearing Aid Clinic Owner 22
Slide 23: Electrical Hardware Distributor
Electrical Hardware Distributor 23
Slide 24: Health Club Owner
Health Club Owner DCB BANK
Slide 25: Trophy Manufacturer
ee OCB Bank Trophy Manufacturer
Slide 26: Kitchenware Distributor
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Slide 27: Foodgrain Wholesaler
ee OcB Bank 7 ™ Foodgrain Wholesaler i a , _
Slide 28: Business Strategy
Business Strategy Rely mainly on Retail 1 Concentrate on Tier 2 to 2 Relentless focus on 3 Deposits (Term, CASA). Tier 6 locations. Liquidity, Costs, Grow NRI deposits. Limit Operational Risks, dependency on bulk. People and Customer Service. Improve continuously. 4 Form strategic alliances 5 Contin
Slide 29: Products and Services
Products and Services Retail Banking SME, Corporate Banking, NBFCs, Co-operative Banks Deposit Products: Loans: Bills Collection Term Loans Corporate Salary Auto Loan Current Account Trade Current Account Current and Savings Commercial Vehicle Foreign Exchange Working Capital L
Slide 30: Capital Raising and Milestones
Capital Raising and Milestones Tier I Capital Raising Milestones 2017 QIP of INR 3.8 bn 2017 Opened 300th Branch 2014 QIP of INR 2.5 bn 2016 Opened 200th Branch QIP of INR 940 mn and Preferential 2015 Opened 150th Branch 2012 Allotment of INR 1,390 mn 2013 Name changed to DCB Bank Ltd. 2009 QIP of I
Slide 31: Investor Profile as on December 31, 2018
Investor Profile as on December 31 , 2018 Key Non Promoter Shareholders % Matthews India Fund 4.09% India Advantage Fund S4 I 4.03% Aditya Birla Sunlife Mutual Fund * 3.72% *AKFED and PJI 14.94% ***Institutions Premji Invest * 3.25% 49.01% Others (Non- Tano Mauritius India FVCI II 3.18% Institutions
Slide 32: Board of Directors
Board of Directors 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 uplift of the poor. Altaf Jiwani Expertise in Foreign Exchange, Risk Management and Trade Finance.
Slide 33: Management Team
Management Team Aditya Prasad – 31 yrs work exp. Abhijit Bose - *25 yrs work exp. Chief Compliance Officer Ajay Mathur – 23 yrs work exp. Head – Collections & Commercial Chief Credit Officer Vehicles Abhijit Shah – 23 yrs work exp. T P Anuradha – 17 yrs work exp. Chief Technology Officer Bharat Samp
Slide 34: Thank you
Thank you To receive investor updates from DCB Bank Ltd., write in at investorrelations@dcbbank.com Do let us know of any change in your contact details on the same email ID. Corp. & Reg. Office: 6th Floor, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel, Mumbai – 400013 CIN: L999