Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q3 FY2020 Earnings Presentation
43 slides from Dcb Bank's earnings presentation, Jan 25, 2020
Slide 1: Cover letter to stock exchanges
Ref. No.CO:CS:RC:2019-20:224 January 25, 2020 BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Sandra Kurla Complex, Dalal Street, Fort, Sandra (E), Mumbai - 400 023. Mumbai - 400 051. Dear Sirs, Re: Investor Presentation Q3 FY 2019-20 (25th January 2
Slide 2: Investor Presentation – Q3 FY 2020
Investor Presentation – Q3 FY 2020 January 25, 2020 DCB Bank Limited
Slide 3: 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 4: Branch Network December 31, 2019
Branch Network December 31, 2019 This map is for representation purpose only DCB Bank Limited 3
Slide 5: Key Indicators - I
Key Indicators - I No. of Cost to Income Return on Return on INR mn Branches Balance Sheet Ratio Asset Equity Q3 FY 2020 334 380,571 54.36% 1.03% *12.67% Q2 FY 2020 334 370,183 55.51% 0.99% *12.34% Q1 FY 2020 334 362,824 57.46% 0.89% *11.17% FY 2019 333 357,918 56.88% 0.99% *12.08% FY 2018 318 302,2
Slide 6: Key Indicators - II
Key Indicators - II INR mn Q3 FY 20 Q2 FY 20 Q3 FY 19 Y-o-Y Deposits 297,349 293,633 275,090 8% Of which CASA 69,413 68,249 66,701 4% Of which Retail Term 178,308 171,164 148,636 20% - Of which NRI Term 23,137 19,321 16,705 39% Net Advances 254,382 247,976 228,884 11% INR mn Q3 FY 20 Q2 FY 20 Q3 FY
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 2014 2015 2016 2017 2018 2019 2019 2019 2019 Shareholder’s Equity 11,540 15,886 17,922 22,049 28,078 31,156 31,611 32,543 33,523 Deposits 103,251 126,091 149,260 192,892 240,069 284,351 287,892 293,633 297,3
Slide 8: Profit & Loss
Profit & Loss INR mn Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Net Interest Income 2,936 3,009 3,047 3,133 3,231 Other Income 945 993 868 1,014 931 - Commission, exchange 594 648 546 578 625 and brokerage - Profit on Sale of Investment 112 90 159 249 70 - Profit on Exchange Transaction 57 58 55 34 51
Slide 9: Profit & Loss
Profit & Loss INR mn FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Net Interest Income 3,684 5,082 6,195 7,971 9,954 11,493 Other Income 1,387 1,657 2,205 2,488 3,103 3,502 - Commission, exchange and brokerage 999 1,193 1,405 1,651 2,176 2,399 - Profit on Sale of Investment 225 277 423 454 454 386
Slide 10: Deposits Mix
Deposits Mix Deposits as on December 31, 2019 Residential Term *CASA Deposit 58% 23% Interbank Term Deposit 11% Non-Resident Term Deposit 8% * CASA includes NRI CASA 9 DCB Bank Limited
Slide 11: Advances Mix
Advances Mix Net Advances as on December 31, 2019 SME + MSME, 11% Corporate Banking, Mortgages, 41% 12% AIB, 21% Commercial Vehicle, 7% Others 3% Construction Gold Loan, 2% Finance, 3% 10 DCB Bank Limited
Slide 12: NIM, Yield and Cost of Funds
NIM, Yield and Cost of Funds FY FY FY FY FY Q1 FY Q2 FY Q3 FY Year Ended 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2019-20 2019-20 Net Interest 3.72% 3.94% 4.04% 4.16% 3.83% 3.67% 3.67% 3.71% Margin Yield on 12.63% 12.52% 12.03% 11.41% 11.29% 11.58% 11.53% 11.52% Advances Cost of 7.67% 7.48% 6
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, 2015 2016 2017 2018 2018 2019 2019 2019 2019 Gross NPA 1.76% 1.51% 1.59% 1.79% 1.92% 1.84% 1.96% 2.09% 2.15% Net NPA 1.01% 0.75% 0.79% 0.72% 0.71% 0.65% 0.81% 0.96% 1.03% Provision 74.66% 77.55% 73.80% 75.7
Slide 14: Gross NPA Movement
Gross NPA Movement INR mn Q3 2018-19 Q2 2019-20 Q3 2019-20 FY 2018-19 Opening Balance 4,100 4,764 5,232 3,690 (+) Add 1 Fresh Slippages 1,143 1,609 2,017 4,171 Addition to Existing 4 8 15 34 NPAs (-) Less 2 Recoveries 279 273 815 1,221 Upgrades 351 523 513 1,611 3 Write Offs / Sacrifice 166 353 416
Slide 15: Treasury
Treasury Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Dec 31, INR mn 2013 2014 2015 2016 2017 2018 2019 2019 SLR 24,332 28,072 34,750 39,855 47,711 49,091 60,007 61,079 Non-SLR 5,552 4,236 4,872 3,478 10,468 13,099 18,434 20,312 Total 29,884 32,308 39,622 43,333 58,179 62,190 78,441 81,39
Slide 16: Capital Adequacy Ratios – Basel III
Capital Adequacy Ratios – Basel III Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Dec 31, 2013 2014 2015 2016 2017 2018 2019 2019 CRAR 13.61% 13.71% 14.95% 14.11% 13.76% 16.47% 16.81% 15.80% -- Tier I 12.62% 12.86% 14.21% 12.79% 11.87% 12.72% 13.10% 12.30% -- Tier II 0.99% 0.85% 0.74% 1.32
Slide 17: Ratings
Ratings Sep 30, Dec 31, Mar 31, Mar 30, Mar 30, Mar 31, Dec 31, 2013 2014 2016 2017 2018 2019 2019 ICRA Long Term – A+(hyb) A+(hyb) A+(hyb) A+(hyb) A+(hyb) Subordinated - - (stable) (stable) (stable) (stable) (stable) Debt Short – Term Fixed - A1+ A1+ A1+ A1+ A1+ A1+ Deposits CRISIL Long Term – A+/
Slide 18: Overview
Overview 17 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 19 DCB Bank Limited
Slide 21: Tyre Re-treading Business Owner
Tyre Re-treading Business Owner 20
Slide 22: Metal Sheets Wholesaler
ee” OC BANK Metal Sheets Wholesaler
Slide 23: Fitness Club Owners
DCB BANK s Fitness Club Owners
Slide 24: Saree Retail Outlet Owners
Saree Retail Outlet Owners 23
Slide 25: Manufacturer of Agriculture Tools
Manufacturer of Agriculture Tools 24
Slide 26: Roofing Material Wholesaler
Roofing Material Wholesaler 25
Slide 27: Business Strategy
Business Strategy 1 Concentrate on Tier 2 to 2 Relentless focus on 3 Rely mainly on Retail Deposits. Grow NRI Tier 6 locations. Liquidity, Costs, deposits. Limit dependency Operational Risks, on bulk. Calibrated branch expansion. People and Customer Service. Improve continuously. 4 Form strategic al
Slide 28: 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 29: 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 30: Investor Profile as on December 31, 2019
Investor Profile as on December 31, 2019 Key Non Promoter Shareholders % 4.49% HDFC Small Cap Fund ***Institutions Bodies 4.02% 57.41% Corporate India Advantage Fund S4 I 03.09% 3.82% Aditya Birla Sunlife Mutual Fund * 3.75% Matthews India Fund 2.91% DSP Small Cap Fund 2.84% Sundaram Mutual Fund * S
Slide 31: 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 32: Management Team
Management Team Aditya Prasad – 31 yrs work exp. Ajay Mathur – 23 yrs work exp. Abhijit Bose - *25 yrs work exp. Chief Compliance Officer Head – Collections & Commercial Chief Credit Officer Vehicles Bappa Roy – 27 yrs work exp. Bharat Sampat - *31 yrs work exp. T P Anuradha – 18 yrs work exp. Produ
Slide 33: Digital Update
Digital Update 32 DCB Bank Limited
Slide 34: Four pillars of digital agenda
Four pillars of digital agenda 1 2 Core Applications – continuously Mobile / Tab – create customer upgrade business applications to convenience by optimum use of support digital transformation mobile devices 3 4 Payments – innovative solutions Infrastructure – modernize to that are dynamic, secure a
Slide 35: DCB Remit sends money abroad in 7+ currencies in real-time
DCB Remit is the only platform which offers sending money abroad in 7+ Currencies and in Real-time DCB Bank Limited 34
Slide 36: DCB Bank implemented RuPay PaySecure
DCB Bank implemented RuPay PaySecure - a security feature for its RuPay card holders. 35 DCB Bank Limited
Slide 37: DCB Bank launches VISA Access Control Server
DCB Bank launches VISA Access Control Server(ACS) secure mechanism for DCB Bank Visa Card holders to allow customers to verify their identity to offer a more secure transaction to the online merchant. 36 DCB Bank Limited
Slide 38: DCB Bank enabled for Pool Account on GeM
DCB Bank is enabled for Pool Account on Government e Marketplace (GeM) 37 DCB Bank Limited
Slide 39: Lending Platform Upgraded to new version
Lending Platform Upgraded to new version with API enabled and Enhanced features DCB Bank Limited 38
Slide 40: Rewards & Recognition
Rewards & Recognition 39 DCB Bank Limited
Slide 41: ACEF Award for Best Corporate-Nonprofit Partnership
ACEF Award for Best Corporate-Nonprofit Partnership – DCB Bank & SM Sehgal Foundation 40 DCB Bank Limited
Slide 42: Bombay Chamber of Commerce Award for Corporate Citizenship
DCB Bank won the Bombay Chamber of Commerce & Industry Award for Corporate Citizenship DCB Bank Limited 41
Slide 43: 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