Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q2 FY2023 Earnings Presentation
49 slides from Dcb Bank's earnings presentation, Nov 5, 2022
Slide 1: Exchange filing cover letter
Ref. No.CO:CS:RC:2022-23:172 November 05, 2022 BSE Limited National Stock Exchange of India Limited Listing Department, Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th floor, Plot No. C/1, 1st floor Dalal Street. G Block Bandra – Kurla Complex, Mumbai 400 001 Bandra (East), Mumbai
Slide 2: DCB Bank Limited Investor Presentation – Q2FY23
DCB Bank Limited Investor Presentation – Q2FY23
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: Q2 FY2023 Performance Highlights & Key Takeaways
Q2 FY2023 Performance Highlights & Key Takeaways Improving core fees income: INR 141.55 crores H1 FY22-23 Continued investments in front line + branch Credit cost: 0.27% infrastructure: 410 Branches 10 new branches added in H1 FY22-23 Strong capital adequacy ratio: Improving growth in Advances: +17.
Slide 5: Key Performance Highlights – Q2 FY2023
Key Performance Highlights – Q2 FY2023 INR 46,782 crores INR 31,291 crores INR 36,960 crores ( +12.80% Y-o-Y ) ( +17.91% Y-o-Y ) ( +16.34% Y-o-Y ) Balance Sheet Size Advances Deposits INR 112 crores 3.89% 1.54% ( 73.01% Y-o-Y ) (Q2FY2022: 4.73%) (Q2FY2022: 2.66%) Profit After Tax Gross NPA Net NPA 2
Slide 6: Key Performance Highlights – FY2022
Key Performance Highlights – FY2022 INR 44,793 crores INR 29,096 crores INR 34,692 crores ( +13.11% Y-o-Y ) ( +13.05% Y-o-Y ) ( +16.79% Y-o-Y ) Balance Sheet Size Advances Deposits INR 288 crores 4.32% 1.97% ( -14.38% Y-o-Y ) (FY2021: 4.13%) (FY2021: 2.31%) Profit After Tax Gross NPA Net NPA 26.75%
Slide 7: About Us
About Us
Slide 8: About Us
About Us • New generation private sector bank with more • To be the most innovative and responsive than 400 branches across 18 States and 2 neighborhood bank in India serving Union Territories entrepreneurs, individuals, and businesses Background Company Vision • Mortgage, MSME/SME, Agri and Gold Lo
Slide 9: Journey so Far
Journey so Far Amalgamation of Masalawala Private Equity Investment by AKFED (Aga Khan Name changed to DCB Bank 1981 Cooperative Bank and Ismailia 2005 Fund for Economic Development - Principal 2013 Opened 100th Branch Cooperative Bank into Development Promoter) of INR 1.38bn in March 2005 C
Slide 10: MSME/SME Opportunity
MSME/SME Opportunity Number of working enterprises – 64 million, Employment – 111 million MSMEs play a pivotal role in the economic and Urban 49%, Rural – 51% social development of the country Manufacturing- 31%, Trade – 36%, Other services – 33% Robust Indian economy, MSMEs target market size and D
Slide 11: 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 12: Wide Range of Products
Wide Range of Products Retail Banking Deposit Products Cards Payments Advances – Focus on Secured Lending Third Party Distribution • Home Loans • Kisan Credit Card • Life Insurance, • Current and Savings • ATM Card • Bill / Utility Payments • Gold Loan • Loan Against Property • General Insurance (CA
Slide 13: Outlook & Way Forward
Way Forward Balance Sheet Asset Quality & Cost to Average Assets Margins Key Ratios (Deposits + Advances) Credit Costs / Cost to Income Ratio Balance Sheet as at 30-Sep-22: Diversified portfolio with focus on Gross NPA at 3.89% and Net NPA Cost to Average Assets at 2.83% Return on Assets a
Slide 14: Customer Service and Digital Initiatives
Customer Service and Digital Initiatives
Slide 15: Well Penetrated Distribution Network
Well Penetrated Distribution Network Head count ATMs Branches 9,443 8,077 381 410 6,841 400 349 356 344 Sep-21 Mar-22 Sep-22 Sep-21 Mar-22 Sep-22 Sep-21 Mar-22 Sep-22 Region wise Branches (%) State wise Branches (%) 18% 18% 16% 27% 4% 12% 4% 5% 26% 8% 5% 5% 29% 9% 6% 8% Metro Urban Semi Urban Rural
Slide 16: Digital Engagement / Technology Innovation
Digital Engagement / Technology Innovation Mobile Applications • Mobile Banking for multilingual Retail customers Technology Adoption • Mobile App for Gold Loan customers • Blockchain – adopted ‘Blockchain’ for use cases such as multi authentication for ATM • Zippi + - paperless and digital onboardi
Slide 17: Leading to Enhanced Digital Footprint
Leading to Enhanced Digital Footprint Digital Transactions (% of Total Transactions) Personal Internet Banking Transactions (In Lakhs) 2.8 91% 92% 87% 88% 89% 2.7 2.6 2.5 2.5 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 UPI Transactions (In Lakhs) Mobile Banking Transactions
Slide 18: Board & Management
Board & Management
Slide 19: Eminent Board of Directors
Eminent Board of Directors Amyn Jassani Ashok Barat Farokh Subedar Independent Director Independent Director Independent Director A Fellow of the ICAI and of the ICSI, Associate of the Institute of A Fellow of the Institute of Chartered Accountants with more than 25 A Member of The Institute of Char
Slide 20: Experienced Team of Professionals
Experienced Team of Professionals Abhijeet Roy Abhijit Bose Ajay Mathur Ajit Kumar Singh Bappa Roy Damodar Agarwal • Designation: Head - Admin Projects • Designation: Chief Credit Officer • Designation: Head – Collections • Designation: Head – Treasury • Designation: Product Head – • Designation: He
Slide 21: Business Update
Business Update
Slide 22: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 30-Sep-22) 9.5% 31,291 2.2% 5.0% 4.8% 2.2% 3.7% 0.8% 2.0% 10.4% 29,814 3.3% 29,096 21.6% 3.6% 3.2% 27,343 26,537 42.8% 6.5% Agri & Inclusive Banking (AIB) Mortgages Mortgages Tractors Corporate banking Gold Loan Kissan Credit Card MFI+BC Co
Slide 23: Agri & Inclusive Banking (AIB) – A Bank Within a Bank
Agri & Inclusive Banking (AIB) – A Bank Within a Bank AIB as a % of Total Portfolio 120% 100% 80% Axis Title 60% 80% 79% 78% 79% 79% 78% 40% 20% 20% 21% 22% 21% 21% 22% 0% 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 30-Jun-22 30-Sep-22 Axis Title AIB Others • AIB Manages 181 Branches • AIB’s main mandat
Slide 24: Disbursements
Disbursements Product wise Disbursement Trends (INR crores) 4,622 249 349 3,527 3,616 222 999 3,110 244 2,991 309 388 183 169 380 328 566 679 782 667 661 614 503 976 719 570 715 574 366 442 1370 1115 1111 795 821 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Mortgages SME + MSME Corporate banking AIB Gold Loan
Slide 25: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (INR crores) 11.2% 13.4% 14.2% 20.1% 17.0% 28.0% 10.4% 8.8% 8.5% 8.2% 11.0% 26,114 68.6% 70.6% 70.0% 25,411 73.1% 8.2% 77.0% 81.0% 23,851 22,917 21,625 18,167 78.4% 77.8% 77.3% 71.7% 72.0% 63.8% 10,846 31.4% 29.4% 30.0% 9,281 26.9%
Slide 26: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 2.4% 1.7% 1.5% 2.1% 1.4% Instruments CRISIL ICRA 8.9% 7.3% 9.0% 8.2% 7.3% Long Term – Subordinated Debt AA-/Stable A+Stable 67.4% 64.1% 64.5% 66.2% 65.5% Certificates of Deposits A1+ - 23.6% 24.0% 25.6% 26.8% 22.5% Short – Term Fixed Deposits A1+ A1
Slide 27: Asset Quality
Asset Quality 67.84% 69.48% 62.17% 72.83% 60.46% 4.73% 4.78% 4.32% 4.21% 3.89% 2.66% 2.55% 1.97% 1.82% 1.54% 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 30-Sep-21 31-D
Slide 28: Restructured Advances
Restructured Advances 31-Mar-2022 30-Jun-2022 30-Sep-2022 (INR crores) Net Net Net Restructured Provision Restructured Provision Restructured Provision outstanding outstanding outstanding Standard 2,156 287 1,869 2,094 278 1,816 1,971 265 1,707 NPA 273 137 136 288 147 141 307 161 146 Total 2,429 424
Slide 29: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Jan-20 Mar-22 Jun-22 Jul-22 Aug-22 Sep-22 Business Loans (LAP) 98.9% 97.7% 98.3% 97.6% 98.9% 98.2% Home Loans 99.2% 99.0% 99.1% 98.5% 97.7% 98.8% CV Loans 96.0% 85.1% 93.8% 90.5% 89.1% 93.6% Collection Efficiency Overall (Including
Slide 30: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 4.73 2.66% 5.91% % 4.32% 6.68% 3.89% 1.97% 4.19% 1.54% 6.18% 3.10% 5.64% Sep-21 Mar-22 Sep-22 Sep-21 Mar-22 Sep-22 Sep-21 Mar-22 Sep-22 Sep-21 Mar-22 Sep-22 PCR PCR PCR Standard restructured (Incl. Technical w
Slide 31: Provisions – Balance Sheet
Provisions – Balance Sheet (INR crores) 30-Sep-2021 31-Mar-2022 30-Sep-2022 Provision for Gross NPA 463 595 637 Floating Provision 115 122 129 Sub-total (A) 578 717 766 Specific Standard Asset Provision 24 29 19 Contingency provision on Restructured and Stressed Accounts 78 70 59 Restructured Standa
Slide 32: Key Ratios (Y-o-Y)
Key Ratios (Y-o-Y) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.50% 3.67% 7.10% 6.96% 11.06% 6.62% 10.71% 6.49% 3.59% 6.16% 3.56% 6.05% FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Cost to Average Assets Cost to Income Ratio Return on Assets Return on E
Slide 33: Key Ratios (Q-o-Q)
Key Ratios (Q-o-Q) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.00% 6.19% 6.08% 3.93% 3.88% 10.81% 5.96% 3.61% 3.61% 6.07% 5.95% 6.04% 10.66% 10.67% 10.65% 6.00% 5.90% 5.87% 3.37% 5.97% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY2
Slide 34: Capital Adequacy Ratio
Capital Adequacy Ratio Capital Adequacy Ratio (%) Risk Weighted Assets (INR crores) 25,780 24,938 24,313 23,789 23,501 4.06% 3.08% 3.03% 3.11% 2.97% 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 Risk Weighted Assets / Total Assets (%) 15.84% 57.77% 15.28% 15.10% 15.44% 14.94% 56.66% 55.15% 55.11
Slide 35: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 118 77 115 66 65 98 99 61 63 92 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 34
Slide 36: Financial Highlights
| Financial Highlights
Slide 37: Profit & Loss Statement – Q2FY2023
Profit & Loss Statement – Q2FY2023 (INR crores) Q2FY2023 Q2FY2022 Y-o-Y Q1FY2023 Q-o-Q FY2022 Interest Income 1,000 869 949 3,513 Interest Expense 589 546 575 2,155 Net Interest Income 411 323 +27% 374 +10% 1,358 Other Income 99 98 92 452 Total Income 510 421 +21% 466 +9% 1,810 Operating Expenses 32
Slide 38: Profit & Loss Statement – H1FY2023
Profit & Loss Statement – H1FY2023 (INR crores) H1FY2023 H1FY2022 Y-o-Y Interest Income 1,949 1,715 Interest Expense 1,164 1,083 Net Interest Income 785 632 +24% Other Income 192 219 Total Income 977 851 +15% Operating Expenses 628 474 Employee Expenses 327 255 Other Expenses 301 219 Operating Profi
Slide 39: Balance Sheet - as at September 30, 2022
Balance Sheet - as at September 30, 2022 (INR crores) 30-Sep-22 31-Mar-22 30-Sep-21 Capital & Liabilities Shareholders Equity 4,230 4,049 3,858 Deposits 36,960 34,692 31,769 Borrowings 3,515 4,082 4,042 Other Liabilities and Provisions 2,077 1,970 1,806 Total 46,782 44,793 41,475 (INR crores) 30-Sep
Slide 40: Historical Profit & Loss Statement
Historical Profit & Loss Statement (INR crores) FY2019 FY2020 FY2021 FY2022 Interest Income 3,041 3,537 3,458 3,513 Interest Expense 1,892 2,272 2,171 2,155 Net Interest Income 1,149 1,265 1,287 1,358 Other Income 344 388 445 452 Total Income 1,493 1,653 1,732 1,810 Operating Expenses 853 903 847 1,
Slide 41: Historical Balance Sheet
Historical Balance Sheet (INR crores) 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 Capital & Liabilities Shareholders Equity 3,116 3,422 3,759 4,049 Deposits 28,435 30,370 29,704 34,692 Borrowings 2,723 3,408 4,482 4,082 Other Liabilities and Provisions 1,518 1,305 1,657 1,970 Total 35,792 38,505 39,602
Slide 42: Shareholding Pattern
Shareholding Pattern Key Non Promoter Shareholders % Shareholding as on September 30, 2022 5.77% DSP Small Cap Fund 4.79 14.85% Tata Mutual Fund* 4.63 26.24% HDFC Small Cap Fund 4.43 India Advantage Fund S4 I 4.01 ICICI Prudential Mutual Fund* 3.80 Franklin India Smaller Companies Fund 3.36 2.88% Om
Slide 43: ESG Initiatives
ESG Initiatives Environment Social Governance • Tree plantation to increase urban & rural • Sustainable livelihood created & lives • The Board of Directors comprise executive green cover, biodiversity & sustainable impacted (Cuttack district, Odisha): and non-executive directors livelihood: 1,77,780
Slide 44: Digital Initiatives
Digital Initiatives New features added to DCB Mobile Banking App Save and manage favourite transactions EMI calculator for loans Event based & personalised notifications Multilingual with 9 Indian language options 43
Slide 45: Digital Initiatives
Digital Initiatives DCB Zippi+ Paperless & fully digital Savings Account & Fixed Deposits account opening experience. A range of deposit options made available: DCB Premium Savings, DCB Privilege & DCB Classic Savings Bank, accounts DCB Fixed Deposit options with tenor up to 10 years Automation
Slide 46: Digital Initiatives
Digital Initiatives Digital Initiative Intelligent Interactive Voice Response (IVR) Interactive voice response (IVR) technology offers customers self-service options through the use of DTMF (such as landline or mobile phone dialpad keys) tones input. In addition to identification and segmentation of
Slide 47: CSR Initiatives
CSR Initiatives Jal Sanrakshan, 29.7 Restoration of 6 crore litres of water Water Harvest harvesting potential Structures (WHS) created Sustainable Miyawaki Urban Plantation Plantation of Livelihood for of 90,000+ trees 25,000 Plants (Mumbai) 200 Women Self (Delhi, Pune & Mumbai) Help Groups We Cont
Slide 48: Awards & Accolades
Awards & Accolades India’s Best Bank for CSR 2022 by Asiamoney Livelihood Improvement Project (LIP) through Integrated Watershed Management in Banki, Odisha. Project impact for 40,165 beneficiaries ACEF Award ACEF ASIAN LEADERS AWARDS FOR BRANDING, MARKETING AND CSR FOR 2022 Livelihood Improvement P
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