Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q2 FY2024 Earnings Presentation
49 slides from Dcb Bank's earnings presentation, Oct 31, 2023
Slide 1: Cover letter to stock exchanges: Investor Presentation Q2FY24
Ref. No.CO:CS:RC:2023-24:203 October 31, 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 Presentat
Slide 2: DCB Bank Limited Investor Presentation – Q2FY24
DCB Bank Limited Investor Presentation – Q2FY24
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: Q2FY24 Highlights
Q2FY24 Highlights Steady improvement in core fee income: INR 97 crores Q2FY24 Credit cost: 0.28% Steady investments in front line + branch infrastructure: 439 Branches, 3 branches added in Q2FY24 Strong capital adequacy ratio: 16.55% Advances growth: +19.13% Y-o-Y Continued granular loan book Deposi
Slide 5: Performance Highlights – Q2FY24
Performance Highlights – Q2FY24 INR 57,710 crores INR 37,276 crores INR 45,496 crores ( +23.36% Y-o-Y ) ( +19.13% Y-o-Y ) ( +23.10% Y-o-Y ) Balance Sheet Size Advances Deposits INR 127 crores 3.36% 1.28% ( +12.85% Y-o-Y ) (Q2FY23: 3.89%) (Q2FY23: 1.54%) Profit After Tax Gross NPA Net NPA 25.04% 16.5
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 ) (FY22: 4.32%) (FY22: 1.97%) Profit After Tax Gross NPA Net NPA 26.42% 17.55%
Slide 7: About Us
About Us
Slide 8: About Us
About Us • New generation private sector bank 439 • 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: Outlook & Way Forward
Capital Efficient Business Model- Potential to deliver healthy ROA/ROE over time 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-Sep-23: Diversified portfolio with focus on
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 10,024 439 9,905 414 436 9,579 409 396 427 Mar-23 Jun-23 Sep-23 Mar-23 Jun-23 Sep-23 Mar-23 Jun-23 Sep-23 Region wise Branches (%) State wise Branches (%) 18% 18% 16% 29% 4% 12% 5% 25% 5% 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 • Gold Loan
Slide 16: Leading to Enhanced Digital Footprint
Leading to Enhanced Digital Footprint Digital Transactions (% of Total Transactions) Personal Internet Banking Transactions (In Lakhs) 94% 94% 95% 96% 92% 2.5 2.5 2.4 2.3 2.3 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 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 Member of the Institute of Chartered Accountants with more A Member of the Institute of Chartered Accountants of India and the than 30 years of e
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-Sep-23) 0.8% 37,276 6.6% 8.0% 3.4% 4.9% 2.6% 0.5% 8.4% 1.9% 35,474 4.1% 34,378 23.5% 3.5% 32,966 3.2% 31,291 44.4% 7.7% 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 1,996 198 1,865 1,929 196 194 11% 2% Mar-23 Jun-23 Sep-23 Mar-23 Jun-23 Sep-23 8% 33% Region wise Branches State wise Branches 2% 17% 14% 18% 26% 5% 14% 5% 15% 40% 6% 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 4,557 376 249 276 4,237 281 349 301 232 366 1,364 423 999 1,036 1,126 954 679 540 622 892 791 838 976 968 384 426 1,665 1,370 1,395 1,453 1,466 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Mortgages SME + MSME Corporate banking
Slide 24: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (%) 45,496 41,239 11.2% 13.4% 13.5% 13.3% 20.1% 17.0% 34,692 10.4% 8.8% 7.8% 7.6% 30,370 8.2% 11.0% 29,704 28,435 70.0% 73.1% 70.6% 34,105 77.0% 80.6% 81.2% 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 1.4% 0.6% 1.0% 1.4% 2.3% Instruments CRISIL 7.3% 8.2% 8.1% 8.5% 7.9% Long Term – Subordinated Debt AA-/Stable 64.5% 66.0% 66.9% 66.7% 67.3% Certificates of Deposits A1+ 26.8% 25.2% 24.0% 23.4% 22.5% Short – Term Fixed Deposits A1+ Sep-22 Dec-22 Mar-
Slide 26: Asset Quality
Asset Quality 4.50% 3.89% 72.83% 74.68% 79.34% 77.07% 75.49% 3.62% 4.00% 3.26% 3.36% 3.50% 3.19% 3.00% 2.50% 2.00% 1.54% 1.37% 1.19% 1.28% 1.50% 1.04% 1.00% 0.50% 0.00% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA Sep-22 Dec-22 Mar-2
Slide 27: Restructured Advances
Restructured Advances Mar-2023 Jun-2023 Sep-2023 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 1,779 229 1,550 1,618 209 1,409 1,461 194 1,267 NPA 309 166 143 361 176 185 394 196 198 Total 2,088 395 1,693 1,
Slide 28: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Sep-22 Dec-22 Mar-23 Jun-23 Jul-23 Aug-23 Sep-23 Business Loans (LAP) 98.2% 98.6% 98.8% 98.4% 98.5% 98.5% 98.6% Home Loans 98.8% 98.9% 98.7% 98.6% 98.7% 98.8% 98.7% CV Loans 93.6% 94.8% 96.0% 93.0% 94.6% 95.1% 94.0% Collection Effi
Slide 29: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 3.36% 1.28% 1.19% 4.48% 3.13% 1.04% 2.69% 3.26% 3.99% 3.19% 2.03% 3.28% Mar-23 Jun-23 Sep-23 Mar-23 Jun-23 Sep-23 Mar-23 Jun-23 Sep-23 Mar-23 Jun-23 Sep-23 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 30: Provisions – Balance Sheet
Provisions – Balance Sheet (INR crores) Mar-2023 Jun-2023 Sep-2023 Provision for Gross NPA 629 616 659 Floating Provision 137 141 146 Sub-total (A) 766 757 805 Specific Standard Asset Provision 20 16 6 Contingency provision on Restructured and Stressed Accounts 52 47 43 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% 11.56% 6.85% 6.70% 6.77% 6.61% 4.18% 10.81% 10.99% 6.41% 6.33% 3.88% 4.02% 3.83% 5.87% 5.98% 3.69% 5.97% 6.05% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY2
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) 30,108 17.91% 29,088 17.55% 28,221 17.09% 16.26% 16.55% 26,860 2.97% 2.37% 2.31% 25,780 1.79% 2.27% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Risk Weighted Assets / Total Assets (%) 14.94% 15.18% 14.78% 14.47% 14.28% 55.11%
Slide 34: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 122 97 107 107 91 99 95 77 75 70 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 33
Slide 35: Financial Highlights
| Financial Highlights
Slide 36: Profit & Loss Statement – Q2FY24
Profit & Loss Statement – Q2FY24 (INR crores) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q FY23 Interest Income 1,306 1,000 1,238 4,200 Interest Expense 830 589 767 2,483 Net Interest Income 476 411 +16% 471 +1% 1,717 Other Income 107 99 +8% 107 0% 409 - Commission, Exchange and Brokerage 97 77 75 303 - Profit/
Slide 37: Profit & Loss Statement – Q-o-Q
Profit & Loss Statement – Q-o-Q (INR crores) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Interest Income 1,000 1,072 1,179 1,238 1,306 Interest Expense 589 626 693 767 830 Net Interest Income 411 446 486 471 476 Other Income 99 95 122 107 107 - Commission, Exchange and Brokerage 77 70 91 75 97 - Profit/(Loss
Slide 38: Balance Sheet – Q-o-Q
Balance Sheet – Q-o-Q (INR crores) Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Capital & Liabilities Shareholders Equity 4,230 4,422 4,566 4,656 4,784 Deposits 36,960 39,506 41,239 43,009 45,496 Borrowings 3,515 3,825 4,118 4,730 5,190 Other Liabilities and Provisions 2,077 2,113 2,443 2,579 2,240 Total 46,7
Slide 39: Profit & Loss Statement – Trend
Profit & Loss Statement – Trend (INR crores) FY19 FY20 FY21 FY22 FY23 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, Exchange and Br
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 September 30, 2023 Tata Mutual Fund - Tata Small Cap Fund* 5.20 6.08% HDFC Small Cap Fund 4.47 14.81% DSP Small Cap Fund 4.22 24.59% India Advantage Fund S4 I 4.00 Franklin India Smaller Companies Fund 3.35 Oman India Joint Inve
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 1. Training on beekeeping to women from 250 women from 15 Self Help Groups a) Cluster level: • Monsoon management of beehives and related activities completed in all villages • Hygienic honey harvesting, packaging and marketing of honey tasks completed Coastal Ecosystem b) Individual
Slide 46: CSR Initiatives
CSR Initiatives • Focus: Zone 1, Wards 10 & 11. Simultaneously initiated interventions in Zone 2, Wards 7, 8 & 9 • Over 2,000 kg of waste successfully removed from the Ganga through clean-up drives • Successfully completed surveys for 2,856 establishments Zero Waste to the Ganga • Conducted a weeklo
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 DCB Bank received two CSR Awards at the ACEF Forum: The Bank bagged Gold in the Grand Prix 2023 category which recognizes overall Excellence in Social Responsibility by focusing on projects in remote locations to contribute to society and create sustainable livelihood opportunitie
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