Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q1 FY2025 Earnings Presentation
54 slides from Dcb Bank's earnings presentation, Jul 24, 2024
Slide 1: Exchange filing cover letter: Investor Presentation Q1FY25
Ref. No.CO:CS:RC:2024-25:132 July 24, 2024 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 - 400 001. BSE Scrip Code No.: 532772 NSE SYMBOL: DCBBANK Dear Sirs, Sub: Investor Presentation
Slide 2: DCB Bank Limited Investor Presentation – Q1FY25
DCB Bank Limited Investor Presentation – Q1FY25
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: Q1FY25 Highlights
Q1FY25 Highlights Steady improvement in core fee income: INR 114 crores Q1FY25 Credit cost: 0.18% Steady investments in front line + branch infrastructure: 445 Branches, three branch added in Q1FY25 Strong capital adequacy ratio: 15.95% Advances growth: +18.90% Y-o-Y Continued granular loan book Dep
Slide 5: Performance Highlights – Q1FY25
Performance Highlights – Q1FY25 INR 64,516 crores INR 42,181 crores INR 51,690 crores ( +17.36% Y-o-Y ) ( +18.90% Y-o-Y ) ( +20.19% Y-o-Y ) Balance Sheet Size Advances Deposits INR 131 crores 3.33% 1.18% ( +3.49% Y-o-Y ) (Q1FY24: 3.26%) (Q1FY24: 1.19%) Profit After Tax Gross NPA Net NPA 25.41% 15.95
Slide 6: Performance Highlights – FY2024
Performance Highlights – FY2024 INR 63,037 crores INR 40,925 crores INR 49,353 crores ( +20.38% Y-o-Y ) ( +19.04% Y-o-Y ) ( +19.68% Y-o-Y ) Balance Sheet Size Advances* Deposits INR 536 crores 3.23% 1.11% ( +15.12% Y-o-Y ) (FY23: 3.19%) (FY23: 1.04%) Profit After Tax Gross NPA Net NPA 26.02% 16.59%
Slide 7: About Us
About Us
Slide 8: About Us
About Us • New generation private sector bank 445 • 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 while ensuring strong governance, good working atmosp
Slide 9: MSME/SME Opportunity
MSME/SME Opportunity Number of working enterprises – 63 million, Employment – 111 million MSMEs play a pivotal role in the economic and social Urban 49%, Rural – 51% development of the country Manufacturing- 32%, Trade – 35%, 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 • Debit Card • Bill / Utility Payments • Gold Loan • Loan
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-Jun-24: 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 10,539 11,325 11,896 445 418 418 442 440 416 Dec-23 Mar-24 Jun-24 Dec-23 Mar-24 Jun-24 Dec-23 Mar-24 Jun-24 Region wise Branches (%) State wise Branches (%) 19% 21% 16% 28% 11% 4% 4% 25% 5% 8% 5% 8% 28% 5% 6% 7% Metro Urban Semi Urban Rur
Slide 15: Digital Engagement / Technology Innovation
Digital Engagement / Technology Innovation Mobile Applications Technology Adoption • Mobile Banking for multilingual Retail customers with • Blockchain – adopted ‘Blockchain’ for use cases such as Interest certificate & Positive Pay feature enabled 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) 95% 96% 96% 96% 97% 2.6 2.4 2.3 2.3 2.3 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 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 Abhijit Bose Ajay Mathur Ajit Kumar Singh Ashu Sawhney Bappa Roy • Designation: Chief Credit Officer • Designation: Head – Collections • Designation: Head – Treasury, • Designation: Head – Human • Designation: Head – Product • Years of Experience: 33+ & Commercial V
Slide 20: Business Update
Business Update
Slide 21: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 30-Jun-24) 0.4% 6.2% 7.1% 3.3% 5.5% 2.8% 42,181 6.9% 0.3% 1.8% 40,925 4.5% 38,951 3.8% 25.2% 3.3% 37,276 45.4% 35,474 8.7% 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 203 2,290 2,458 2,038 200 199 11% 1% Dec-23 Mar-24 Jun-24 Dec-23 Mar-24 Jun-24 7% 35% Region wise Branches State wise Branches 1% 18% 16% 25% 19% 5% 13% 5% 15% 40% 5% 6% 15% 11% 12% Mortgages Tractors Kissan Credit
Slide 23: Disbursements
Disbursements Product wise Disbursement Trends (INR crores) 5,207 374 4,557 4,307 429 4,237 281 4,138 232 366 259 272 423 341 1,695 603 1,126 954 1,142 1,097 892 696 791 744 475 426 500 384 327 448 1,453 1,466 1,494 1,513 1,243 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Mortgages SME + MSME Corporate bankin
Slide 24: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (%) 51,690 49,353 11.2% 13.4% 13.5% 13.3% 13.7% 17.0% 10.4% 8.8% 7.8% 7.6% 7.4% 41,239 11.0% 34,692 70.6% 70.0% 30,370 77.0% 80.6% 81.2% 29,704 38,558 83.8% 36,511 30,343 25,411 78.4% 77.8% 78.7% 79.1% 78.9% 72.0% 23,851 22,917 29.
Slide 25: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 1.4% 2.3% 2.0% 2.3% 1.2% Instruments CRISIL CARE* 8.5% 7.9% 8.2% 8.9% 8.2% Long Term – Subordinated Debt AA-/Stable -- 66.7% 67.3% 66.3% 65.7% 67.6% Certificates of Deposits A1+ A1+ 23.4% 22.5% 23.5% 23.1% 23.0% Short – Term Fixed Deposits A1+ A1+ J
Slide 26: Asset Quality
Asset Quality 4.00% 77.07% 75.49% 3.43% 76.42% 77.30% 76.00% 3.26% 3.36% 3.33% 3.50% 3.23% 3.00% 2.50% 2.00% 1.19% 1.28% 1.22% 1.18% 1.50% 1.11% 1.00% 0.50% 0.00% Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA Jun-23 Sep-23 Dec-23 Mar-
Slide 27: Restructured Advances
Restructured Advances Dec-2023 Mar-2024 Jun-2024 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 1,337 178 1,159 1,239 166 1,073 1,140 153 987 NPA 426 239 187 427 237 190 437 244 193 Total 1,763 417 1,346 1,66
Slide 28: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Jun-23 Sep-23 Dec-23 Mar-24 Apr-24 May-24 Jun-24 Business Loans (LAP) 98.4% 98.6% 98.8% 98.9% 98.0% 98.7% 98.9% Home Loans 98.6% 98.7% 98.9% 99.1% 98.3% 98.8% 98.9% CV Loans 93.0% 94.0% 95.7% 97.0% 95.2% 96.3% 96.5% Collection Effi
Slide 29: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 3.43% 1.22% 4.63% 2.55% 1.18% 2.20% 3.33% 1.94% 3.67% 3.23% 3.35% 1.11% Dec-23 Mar-24 Jun-24 Dec-23 Mar-24 Jun-24 Dec-23 Mar-24 Jun-24 Dec-23 Mar-24 Jun-24 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 30: Provisions – Balance Sheet
Provisions – Balance Sheet Provisions – Balance Sheet (INR crores) Dec-2023 Mar-2024 Jun-2024 Performing Advances (A) 38,499 40,493 41,703 Provisions excluding NPA Provision (B) 467 470 467 Provision as a percentage of Performing Advances (B/A) 1.21% 1.16% 1.12% 29
Slide 31: Key Ratios (Q-o-Q)
Key Ratios (Q-o-Q) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.55% 11.56% 11.44% 11.71% 11.50% 7.19% 7.02% 7.14% 7.08% 7.10% 3.83% 6.95% 3.69% 3.62% 6.85% 6.61% 6.77% 6.70% 3.48% 3.39% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY2
Slide 32: Key Ratios (Y-o-Y)
Key Ratios (Y-o-Y) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.57% 6.86% 11.06% 6.94% 3.93% 11.05% 6.49% 6.62% 3.59% 3.65% 10.71% 3.56% 6.16% 6.05% 6.03% 6.11% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Cost to Average Assets Cost
Slide 33: Capital Adequacy Ratio
Capital Adequacy Ratio Capital Adequacy Ratio (%) Risk Weighted Assets (INR crores) 17.09% 34,225 16.55% 16.59% 15.72% 15.95% 32,834 2.31% 2.27% 2.06% 31,366 2.03% 1.95% 30,108 29,088 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Risk Weighted Assets / Total Assets (%) 14.78% 14.28% 14.53% 13.69% 14.00% 53.05%
Slide 34: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 143 136 118 114 124 97 98 107 107 75 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 33
Slide 35: Financial Highlights
| Financial Highlights
Slide 36: Profit & Loss Statement – Q1FY25
Profit & Loss Statement – Q1FY25 (INR crores) Q1FY25 Q1FY24 Y-o-Y Q4FY24 Q-o-Q FY24 Interest Income 1,489 1,238 1,445 5,362 Interest Expense 992 767 937 3,434 Net Interest Income 497 471 +5% 508 -2% 1,928 Other Income 143 107 +34% 136 +5% 474 - Commission, Exchange and Brokerage 114 75 118 388 - Pro
Slide 37: Profit & Loss Statement – Q-o-Q
Profit & Loss Statement – Q-o-Q (INR crores) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Interest Income 1,238 1,306 1,374 1,445 1,489 Interest Expense 767 830 900 937 992 Net Interest Income 471 476 474 508 497 Other Income 107 107 124 136 143 - Commission, Exchange and Brokerage 75 97 98 118 114 - Profit/(
Slide 38: Balance Sheet – Q-o-Q
Balance Sheet – Q-o-Q (INR crores) Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Capital & Liabilities Shareholders Equity 4,656 4,784 4,912 5,071 5,185 Deposits 43,009 45,496 47,120 49,353 51,690 Borrowings 4,730 5,190 5,372 6,219 5,343 Other Liabilities and Provisions 2,579 2,240 2,400 2,394 2,298 Total 54,9
Slide 39: Profit & Loss Statement – Trend
Profit & Loss Statement – Trend (INR crores) FY20 FY21 FY22 FY23 FY24 Y-o-Y Interest Income 3,537 3,458 3,513 4,200 5,362 Interest Expense 2,272 2,171 2,155 2,483 3,434 Net Interest Income 1,265 1,287 1,358 1,717 1,928 +12% Other Income 388 445 452 409 474 +16% - Commission, Exchange and Brokerage 2
Slide 40: Balance Sheet – Trend
Balance Sheet – Trend (INR crores) Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Y-o-Y Capital & Liabilities Shareholders Equity 3,422 3,759 4,049 4,566 5,071 +11% Deposits 30,370 29,704 34,692 41,239 49,353 +20% Borrowings 3,408 4,482 4,082 4,118 6,219 +51% Other Liabilities and Provisions 1,305 1,657 1,970 2
Slide 41: Shareholding Pattern
Shareholding Pattern Shareholding as on Jun 30, 2024 Key Non-Promoter Institutional Shareholders % 5.08% Tata Mutual Fund* 5.18 14.75% HDFC Mutual Fund* 4.92 35.62% Franklin Templeton Asset Management (India) Pvt Ltd* 4.57 ICICI Venture Funds Management Company Limited 3.98 (India Advantage Fund S4
Slide 42: ESG Initiatives
ESG Initiatives Environment Social Governance • Total number of employees volunteered: 1,522 • Sustainable livelihood created through aquaculture • The Board of Directors comprise executive and • Total number of local citizens, students and farming and production in coastal Kendrapada non-executive
Slide 43: Digital Initiatives (1/4)
Digital Initiatives (1/4) Deliverables Management System (DMS) Gradatim Upgrade • The implementation of Phase III of the Deliverables Management System for a centralised Print and Deliverables Unit. • Revamped the Gradatim system with screen reduction and additional validations to reduce the TAT of
Slide 44: Digital Initiatives (2/4)
Digital Initiatives (2/4) UPI LITE e-BRC generation UPI LITE is a simplified version of the popular Unified Payments Interface • Earlier, DGFT system was providing generation of e-BRC (electronic Bank (UPI) system in India, aimed at making small value transactions quick and Realisation Certificate)
Slide 45: Digital Initiatives (3/4)
Digital Initiatives (3/4) CIDF Acceptance NEFT/RTGS 24x7 Digital- Link Based Journey Comprehensive digital document provided to the customer for the Risk Profile activity NEFT/RTGS 24x7 completed for obtaining authentication from the customer. • Now transfer funds round the clock • Customer views th
Slide 46: Digital Initiatives (4/4)
Digital Initiatives (4/4) UPI Registration with International Mobile Numbers Systems Upgrade Exciting news for our NRE customers! DCB Bank now offers the convenience of Multiple systems has been upgraded in this quarter registering for UPI using your international mobile number. • Treasury system ha
Slide 47: CSR Initiatives (1/3)
CSR Initiatives (1/3) Malapalli Lake Beekeeping Based Rejuvenation & Wildlife Corridor Livelihood Development in Restoration, Creation Conservation Banki Block, Cuttack of State & National Programme, Panna, District, Odisha Level Restoration Madhya Pradesh Framework, Karnataka Tree plantation, Imple
Slide 48: CSR Initiatives (2/3)
CSR Initiatives (2/3) Beekeeping Based Livelihood Development in Banki Block, Cuttack District, Odisha • Bee expert and project coordinator regularly conducted home visits for all 118 beneficiaries with 149 active bee colonies and supported summer season management and honey harvesting • Total visit
Slide 49: CSR Initiatives (3/3)
CSR Initiatives (3/3) Restoring grassland for biodiversity conservation, sustainable livelihood & climate mitigation Kendur & Supe Dist., Maharashtra • Nursery setup completed; sapling procurement & propagation ongoing • First round of ecological surveys completed • Women’s self-help group employed
Slide 50: Awards & Accolades (1/4)
Awards & Accolades (1/4) Won Gold Award in Transforming Excellence Category – Infosys Finacle Innovation Awards 2024 • DCB NIYO Co-Branded Debit Card has received Gold Award in Transforming Excellence Category at Infosys Innovation Awards 2024. • Facilities like DCB Savings Account from within in th
Slide 51: Awards & Accolades (2/4)
Awards & Accolades (2/4) 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 oppo
Slide 52: Awards & Accolades (3/4)
Awards & Accolades (3/4) Top 10 workplaces for Health & Wellness by Great Place To Work Ambition Box Employee Choice Award (ABECA) 2024 • The Bank was recently recognized for Health and Wellness 2023 by ‘Great • DCB Bank has been recognized by Ambition Box and won the Ambition Box Place To Work’ Ins
Slide 53: Awards & Accolades (4/4)
Awards & Accolades (4/4) Most Preferred Workplace BFSI 2023-24 Won 2nd runner up in CSR Journal Excellence Awards 2023 in (2nd Edition) Environment Category • This achievement reflects the positive and collaborative environment we've • We were the runners up at the CSR Journal excellence awards 2023
Slide 54: 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 53 53