DCB Bank Limited · NSE:DCBBANK
DCB Bank — Development Credit Bank — Investor Presentation (October 2009)
24 slides from DCB Bank's investor presentation, October 2009
Slide 1: Development Credit Bank Ltd.
Development Credit Bank Ltd. October 2009 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Development Credit Bank Limited (the “Bank”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or f
Slide 3: Contents
Contents DCB at a Glance Financial Performance & Challenges Business Strategy & Way Forward Annexure 3
Slide 4: DCB at a Glance
DCB at a Glance Deep roots in India Present since 1930s as a co-operative bank, converted into a private sector commercial bank in 1995 Only co-operative bank in India to have been converted into a commercial bank Distribution network of 80 branches across 28 cities, 115 ATMs and caters to approxima
Slide 5: Key Milestones
Key Milestones 1981 1988 2004 2006 2008 Amalgamation of Acquired “Scheduled” Classified as a “new Private equity Opened 8 new branches Masalawala Co- status from Reserve Bank generation private sector investment of ~INR including first operative Bank and Of India bank” by the RBI 519.9 mn by HDFC &
Slide 6: Diversified Investor Base
Diversified Investor Base Shareholding pattern (as on September 30, 2009) Total shares outstanding (TSO): 176.00 mn Promoter Aga Khan Fund for Economic Development (AKFED) is an international development agency which Bodies Corporate operates 16 countries around the world 17.12% Other Public Promote
Slide 7: Strong Management Team & Ability to Attract Talent
Strong Management Team & Ability to Attract Talent Bharat Sampat Over 24 years of experience with various organizations like ABN Amro, Standard Chartered Bank, L&T – in India & aboard Chief Financial Experienced in field of financial accounting, financial control Officer and reporting and management
Slide 8: Contents
Contents DCB at a Glance Financial Performance & Challenges Business Strategy & Way Forward Annexure 8
Slide 9: FY 08-09 in Retrospect
FY 08-09 in Retrospect Key challenges faced What went well? Meltdown in the international financial market leading to economic stress in NIM maintained at 2.86% the domestic market CASA ratio improved to 30.95% up from 24.24% Bank’s asset quality during FY 09 deteriorated (gross and net NPAs increas
Slide 10: Financial Performance
Financial Performance Key P&L items (INR mn) FY 08-09 Q1 FY 10 Q2 FY 10 Net interest income 1,972 353 315 Other income 1,201 227 341 Total income 3,173 580 656 Operating Profit 753 57 157 Provisions (1,634)* (409) (326) Net profit / (Loss) (881) (353) (169) Advances 32,740 31,048 29,631 CASA 30.95%
Slide 11: Highlights
Highlights Q2 FY 10 net loss of INR 169 mn is 52.12% lower than Q1 FY10 net loss of INR 353mn Reduction in Unsecured Personal Loan to Total Retail portfolio from 24.93% as on March 31, 2009 to 20.11% as on September 30, 2009 More than 13% growth in Corporate & SME advances as compared to March 31, 2
Slide 12: Key Financial Items
Key Financial Items Income INR Mn Operating Profit INR Mn 1,000 Total Income* 300 Operating Profit 250 800 200 600 150 874 862 251 400 651 656 100 195 580 157 200 50 78 57 0 0 Jun-08 Sep-08 Mar-09 Jun-09 Sep-09 Jun-08 Sep-08 Mar-09 Jun-09 Sep-09 *Total income net of interest expense Provision INR Mn
Slide 13: Contents
Contents DCB at a Glance Financial Performance & Challenges Business Strategy & Way Forward Annexure 13
Slide 14: Business Strategy
Business Strategy Grow Retail, Micro SME, SME, mid- Corporate & Agri / Microfinance with a “customer centric approach”, Concentrate on secured lending & diversified portfolio Retail – Branch Centric Low cost deposits (CASA / Term) Secured lending (Home Loans, Loan Against Property, LATD) Micro SME (
Slide 15: Thrust on Low Cost Retail Deposits through Branch Network
Thrust on Low Cost Retail Deposits through Branch Network Deposit INR Mn Retail CASA & Term Deposit INR Mn Total Deposit CASA as % of deposit 40.0% 37,175 60,000 36.77% CASA Term Deposit 31,557 31,380 30.95% 50,000 30,000 28.32% 30.0% 24.24% 21,737 40,000 23,284 17,673 18,132 20.0% 20,000 30,000 60,
Slide 16: Focus on Building a Diversified and Secured Loan Portfolio
Focus on Building a Diversified and Secured Loan Portfolio Net Advances INR Mn Portfolio Mix Total Advances Credit Deposit Ratio (%) March 09 80.0% Micro finance/ 40,000 Gold loans / 70.46% Agri, 17% 32,000 70.0% 66.98% 65.81% 24,000 60.21% Retail, 40% 40,688 60.0% Micro 16,000 32,740 29,631 SME/SME
Slide 17: Good Balance between Interest Income & Fees
Good Balance between Interest Income & Fees Net Total income* INR Mn Net interest income (NII) INR INR Mn Mn NII NIM % 4,000 Net Total Income Other Income as % of Net Total Income 80.0% 2,000 4.0% 3.03% 3,000 60.0% 1,500 2.70% 2.86% 3.0% 51.98% 43.61% 46.63% 2.21% 37.85% 2,000 40.0% 1,000 2.0% 1,861
Slide 18: Major Drive to Improve Cost Productivity/ Efficiency
Major Drive to Improve Cost Productivity/ Efficiency Staff Cost INR Mn Operating Cost INR Mn 1200 Operating Costs Staff Costs 1500 1000 800 1000 600 1,044 1,420 1,376 971 400 500 1,026 692 200 239 229 284 271 0 0 FY 06-07 FY 07-08 FY 08-09 Q1 FY10 Q2 FY10 FY 06-07 FY 07-08 FY 08-09 Q1 FY10 Q2 FY10 T
Slide 19: Next Steps…
Next Steps… Return to month on month profit Increase balance sheet size GOAL (Reduce) Cost / Income ratio To improve ROE numbers Sensible growth. Balance portfolio mix with emphasis on secured lending. Rational participation in Corporate Banking. Selective exposure to Agri / Microfinance Approach Fo
Slide 20: Contents
Contents DCB at a Glance Financial Performance & Challenges Business Strategy & Way Forward Annexure 20
Slide 21: Key Balance Sheet Items
Key Balance Sheet Items INR Mn INR Mn Mar-07 Mar-08 Mar-09 Sep-09 Networth 3,161 6,189 5,324 4,874 Deposits 44,152 60,749 46,469 45,025 Borrowings 1,544 4,268 3,455 1,488 Other liabilities & provisions 3,570 4,362 3,523 3,898 Cash, Inter-bank, etc 3,293 6,734 2,801 3,262 Investments 18,466 21,346 16
Slide 22: Key P&L Items
Key P&L Items INR Mn INR Mn Mar-07 Mar-08 Mar-09 H1 FY10 Net interest income 1,196 1,861 1,972 668 Other income 925 1.626 1,201 568 Net Total income 2,121 3,487 3,173 1,236 Operating expenses (1,718) (2,391) (2,420) (1,023) Provisions & contingencies (329) (713) (1,634) (735) Total expenses (2,047)
Slide 23: Key Ratios
Key Ratios Mar-07 Mar-08 Mar-09 H1 FY10 Yield on advances 11.61% 13.32% 13.58% 12.79% Cost of funds 6.69% 8.09% 8.43% 6.89% Net NPA / Net advances 1.64% 0.66% 3.88% 4.67% Return on assets 0.16% 0.60% (1.30%) (1.81%) Return on equity 3.24% 8.12% (15.14%) (20.30%) Book value per share (INR) 21.24 35.5
Slide 24: Thank you
ss S DCB Thank you
Development Credit Bank — Investor Presentation (October 2009) on 6ix