Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q4 FY2019 Earnings Presentation
35 slides from Dcb Bank's earnings presentation, Apr 18, 2019
Slide 1: Exchange filing cover letter
S Z Ss aRNie S QANK SS ‘ DCB BANK Ref, No.CO:CS:RC:2019-20:020 April 18, 2019 BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Dalal Street, Fort, Complex,Bandra (E), Mumbai — 400 051. Mumbai - 400 023. Dear Sirs, Re: Investor Presentatio
Slide 2: Investor Presentation – Q4 FY 2019
Investor Presentation – Q4 FY 2019 April 18, 2019 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: During this period we dealt with the impact of NIM compression, demonetization and GST
October 15, 2015 – 150+ branch expansion Q4 FY 2019 exit guidance Q4 FY 2019 Actual Cost / Income Ratio Below 55% 53.71% Return on Equity Approximately 14% 13.69% Return on Asset Above 1% 1.10% During this period we dealt with the impact of NIM compression, demonetization and GST DCB Bank Limited 3
Slide 5: Branch Network March 31, 2019
Branch Network March 31, 2019 This map is for representation purpose only DCB Bank Limited 4
Slide 6: Key Indicators - I
Key Indicators - I No. of Cost to Return on Return on INR mn Branches Balance Sheet Income Ratio Asset Equity Q4 FY 2019 333 357,918 53.71% 1.10% *13.69% 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 2019 333 35
Slide 7: Key Indicators - II
Key Indicators - II INR mn Q4 FY 19 Q3 FY 19 Q4 FY 18 Y-o-Y Deposits 284,351 275,090 240,069 18% Of which CASA 68,099 66,701 58,403 17% Of which Retail Term 158,319 148,636 120,466 31% - Of which NRI Term 17,636 16,705 14,909 18% Net Advances 235,680 228,884 203,367 16% INR mn Q4 FY 19 Q3 FY 19 Q4 F
Slide 8: Balance Sheet
Balance Sheet Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, INR mn 2013 2014 2015 2016 2017 2018 2019 Shareholder’s Equity 10,031 11,540 15,886 17,922 22,049 28,078 31,156 Deposits 83,638 103,251 126,091 149,260 192,892 240,069 284,351 Borrowings 15,256 8,601 11,638 11,479 12,758 19,267 27
Slide 9: Profit & Loss
Profit & Loss INR mn Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Net Interest Income 2,637 2,730 2,818 2,936 3,009 Other Income 849 828 735 945 993 - Commission, exchange 618 599 559 594 648 and brokerage - Profit on Sale of Investment 42 153 31 112 90 - Profit on Exchange Transaction 37 49 52 57 58 Ope
Slide 10: Profit & Loss
Profit & Loss INR mn FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Net Interest Income 5,082 6,195 7,971 9,954 11,493 Other Income 1,657 2,205 2,488 3,103 3,502 - Commission, exchange and 1,193 1,405 1,651 2,176 2,399 brokerage - Profit on Sale of Investment 277 423 454 454 386 - Profit on Exchange Transa
Slide 11: Deposits Mix
Deposits Mix Deposits as on March 31, 2019 Residential Term *CASA Deposit 55% 24% Interbank Term Deposit 15% Non-Resident Term Deposit 6% * CASA includes NRI CASA 10 DCB Bank Limited
Slide 12: Advances Mix
Advances Mix Net Advances as on March 31, 2019 SME + MSME 12% Corporate Banking Mortgages 40% 13% AIB 20% Commercial Vehicle 7% Others 3% Construction Gold Loan 2% Finance 3% 11 DCB Bank Limited
Slide 13: NIM, Yield and Cost of Funds
NIM, Yield and Cost of Funds FY FY FY FY FY FY Q4 FY Year Ended 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2018-19 Net Interest Margin 3.56% 3.72% 3.94% 4.04% 4.16% 3.83% 3.78% Yield on Advances 12.84% 12.63% 12.52% 12.03% 11.41% 11.29% 11.59% Cost of Funds 7.78% 7.78% 7.54% 7.00% 6.51% 6.75% 7
Slide 14: Non Performing Assets
Non Performing Assets Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2014 2015 2016 2017 2018 2018 2018 2018 2019 Gross NPA 1.69% 1.76% 1.51% 1.59% 1.79% 1.86% 1.84% 1.92% 1.84% Net NPA 0.91% 1.01% 0.75% 0.79% 0.72% 0.72% 0.70% 0.71% 0.65% Provision 80.54% 74.66% 77.55% 73.8
Slide 15: Gross NPA Movement
Gross NPA Movement INR mn Q4 2017-18 Q3 2018-19 Q4 2018-19 FY 2018-19 Opening Balance 3,545 4,100 4,451 3,690 (+) Add Fresh Slippages 805 1,143 985 4,171 Addition to Existing 9 4 22 34 NPAs (-) Less Recoveries 284 279 368 1,221 Upgrades 383 351 454 1,611 Write Offs / Sacrifice 2 166 241 668 Closing
Slide 16: Treasury
Treasury Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, INR mn 2012 2013 2014 2015 2016 2017 2018 2019 SLR 20,219 24,332 28,072 34,750 39,855 47,711 49,091 60,007 Non-SLR 774 5,552 4,236 4,872 3,478 10,468 13,099 18,434 Total 20,993 29,884 32,308 39,622 43,333 58,179 62,190 78,441 I
Slide 17: 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, Mar 31, 2014 2015 2016 2017 2018 2018 2018 2018 2019 CRAR 13.71% 14.95% 14.11% 13.76% 16.47% 15.55% 15.57% 15.45% 16.81% -- Tier I 12.86% 14.21% 12.79% 11.87% 12.72% 12.02% 12.02% 11.93% 13.10% -- Tie
Slide 18: Ratings
Ratings Sep 30, Dec 31, Mar 31, Mar 30, Mar 30, Mar 31, 2013 2014 2016 2017 2018 2019 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 19: Overview
a 0ce Bank Overview DCB Bank Limited
Slide 20: 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 21: Our Customers
Our Customers 20 DCB Bank Limited
Slide 22: Fire Safety Equipment Dealer
Fire Safety Equipment Dealer 21
Slide 23: Tour & Travel Agent
o ™~ DCB wD ed ew Tour & Travel Agent
Slide 24: Wrist Watches Retailer
a Oce Bank Wrist Watches Retailer
Slide 25: Glass Products Dealer
a Oc8 Bank __ Glass Products Dealer
Slide 26: Clinic Owner
Clinic Owner 25
Slide 27: Bicycle Shop Owner
DCB BANK Bicycle Shop Owner
Slide 28: Rice & Pulses Wholesaler
———e § Rice & Pulses Wholesaler
Slide 29: 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 30: 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 31: 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 32: Investor Profile as on March 31, 2019
Investor Profile as on March 31 , 2019 Key Non Promoter Shareholders % Matthews India Fund 4.08% India Advantage Fund S4 I 4.03% *AKFED and PJI Aditya Birla Sunlife Mutual Fund* 3.98% 14.93% ***Institutions 51.08% Premji Invest* 3.24% Others (Non- Institutions)** Tano Mauritius India FVCI II 2.96% 2
Slide 33: 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 34: 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 35: 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