Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q3 FY2023 Earnings Presentation
49 slides from Dcb Bank's earnings presentation, Jan 28, 2023
Slide 1: Exchange filing cover letter
Ref. No.CO:CS:RC:2022-23:269 January 28, 2023 BSE Limited National Stock Exchange of India Limited Listing Department, Listing Department, P J Towers, Exchange Plaza, 5th floor, Plot No. C/1, 1st floor Dalal Street. G Block Bandra – Kurla Complex, Mumbai 400 001 Bandra (East), Mumbai 400 051 Scrip C
Slide 2: DCB Bank Limited Investor Presentation – Q3FY23
DCB Bank Limited Investor Presentation – Q3FY23
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: Q3 FY2023 Performance Highlights & Key Takeaways
Q3 FY2023 Performance Highlights & Key Takeaways Improving core fees income: INR 211.53 crores 9M FY22-23 Credit cost: 0.34% Continued investments in front line + branch infrastructure: 418 Branches, 8 new branches added in Q3 FY22-23 Strong capital adequacy ratio: Strong growth in Advances: +20.56%
Slide 5: Key Performance Highlights – Q3 FY2023
Key Performance Highlights – Q3 FY2023 INR 49,866 crores INR 32,966 crores INR 39,506 crores ( +21.10% Y-o-Y ) ( +20.56% Y-o-Y ) ( +22.57% Y-o-Y ) Balance Sheet Size Advances Deposits INR 114 crores 3.62% 1.37% ( 51.05% Y-o-Y ) (Q3FY2022: 4.78%) (Q3FY2022: 2.55%) 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 20 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 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 13: Way Forward
Way Forward 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 31-Dec-22: Diversified portfolio with focus on Gross NPA at 3.62% and Net NPA Cost to Average Assets at 2.87% R
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 385 418 9,649 400 7,349 8,077 367 353 349 Dec-21 Mar-22 Dec-22 Dec-21 Mar-22 Dec-22 Dec-21 Mar-22 Dec-22 Region wise Branches (%) State wise Branches (%) 18% 18% 16% 27% 4% 12% 5% 5% 26% 8% 5% 5% 8% 29% 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) 2.7 94% 2.6 92% 88% 89% 91% 2.5 2.5 2.4 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 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 • Designation: Head - Admin • Designation: Chief Credit Officer • Designation: Head – Collections & • Designation: Head – Treasury & • Designation: Product Head – Projects Properties & Procurement • Ye
Slide 21: Business Update
Business Update
Slide 22: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 31-Dec-22) 32,966 9.1% 31,291 1.7% 6.4% 29,814 4.2% 2.2% 3.9% 29,096 0.8% 27,343 1.9% 10.0% 3.4% 22.0% 3.5% 3.4% 42.7% 6.8% 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 Product Mix Headcount Branches 2,232 189 1,754 179 1,564 163 10% 4% Dec-21 Mar-22 Dec-22 Dec-21 Mar-22 Dec-22 31% 9% Region wise Branches State wise Branches 15% 2% 12% 18% 15% 5% 27% 16% 38% 5% 5% 7% Mortgages Tractors 16% 42% 11% Kissan Credit
Slide 24: Disbursements
Disbursements Product wise Disbursement Trends (INR crores) 4,622 4,598 249 276 349 301 3,527 3,616 222 999 1036 244 2,991 309 388 169 328 566 679 622 782 661 614 503 976 968 570 715 574 442 1,370 1,395 1,115 1,111 821 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Mortgages SME + MSME Corporate banking AIB Gol
Slide 25: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (%) 39,506 34,692 11.2% 13.4% 13.5% 20.1% 17.0% 28.0% 30,370 29,704 10.4% 8.8% 7.9% 28,435 11.0% 8.2% 68.6% 70.6% 70.0% 8.2% 24,007 73.1% 77.0% 28,595 81.7% 25,411 21,625 23,851 22,917 18,167 78.4% 77.8% 78.6% 71.7% 72.0% 63.8% 10,
Slide 26: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 1.7% 1.5% 2.1% 1.4% 0.6% Instruments CRISIL ICRA 7.3% 9.0% 8.2% 7.3% 8.2% Long Term – Subordinated Debt AA-/Stable A+Stable 67.4% 65.5% 64.1% 64.5% 66.0% Certificates of Deposits A1+ - 23.6% 24.0% 25.6% 26.8% 25.2% Short – Term Fixed Deposits A1+ A1
Slide 27: Asset Quality
Asset Quality 67.84% 69.48% 72.83% 74.68% 62.17% 4.78% 4.32% 4.21% 3.89% 3.62% 2.55% 1.97% 1.82% 1.54% 1.37% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 (INR Cror
Slide 28: Restructured Advances
Restructured Advances Mar-2022 Sep-2022 Dec-2022 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 2,156 287 1,869 1,971 265 1,707 1,876 248 1,628 NPA 273 137 136 307 161 146 321 165 156 Total 2,429 424 2,005 2,
Slide 29: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Mar-22 Jun-22 Sep-22 Oct-22 Nov-22 Dec-22 Business Loans (LAP) 97.7% 98.3% 98.2% 97.9% 98.3% 98.6% Home Loans 99.0% 99.1% 98.8% 98.8% 98.7% 98.9% CV Loans 85.1% 93.8% 93.6% 92.9% 94.4% 94.8% Collection Efficiency Overall (Including
Slide 30: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 2.55% 4.78% 6.98% 4.28% 4.32% 1.97% 5.64% 2.88% 3.62% 5.20% 3.10% 1.37% Dec-21 Mar-22 Dec-22 Dec-21 Mar-22 Dec-22 Dec-21 Mar-22 Dec-22 Dec-21 Mar-22 Dec-22 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 31: Provisions – Balance Sheet
Provisions – Balance Sheet (INR crores) Dec-2021 Mar-2022 Dec-2022 Provision for Gross NPA 525 595 637 Floating Provision 118 122 133 Sub-total (A) 643 717 770 Specific Standard Asset Provision 33 29 18 Contingency provision on Restructured and Stressed Accounts 76 70 57 Restructured Standard Assets
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% 10.99% 6.07% 5.98% 4.02% 6.05% 5.96% 6.04% 5.95% 3.93% 10.81% 3.88% 6.00% 5.90% 10.67% 10.65% 5.97% 5.87% 3.61% 3.61% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY2
Slide 34: Capital Adequacy Ratio
Capital Adequacy Ratio Capital Adequacy Ratio (%) Risk Weighted Assets (INR crores) 18.92% 26,860 18.21% 18.47% 17.91% 25,780 3.08% 16.26% 24,938 3.11% 3.03% 2.97% 24,313 1.79% 23,789 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Risk Weighted Assets / Total Assets (%) 15.84% 15.44% 15.10% 14.94% 14.47% 57.77%
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 70 66 65 99 63 95 92 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 34
Slide 36: Financial Highlights
| Financial Highlights
Slide 37: Profit & Loss Statement – Q3FY2023
Profit & Loss Statement – Q3FY2023 (INR crores) Q3FY2023 Q3FY2022 Y-o-Y Q2FY2023 Q-o-Q FY2022 Interest Income 1,072 878 1,000 3,513 Interest Expense 626 533 589 2,155 Net Interest Income 446 345 +29% 411 +8% 1,358 Other Income 95 118 99 452 Total Income 541 463 +17% 510 +6% 1,810 Operating Expenses
Slide 38: Profit & Loss Statement – 9M-FY2023
Profit & Loss Statement – 9M-FY2023 (INR crores) 9M-FY2023 9M-FY2022 Y-o-Y Interest Income 3,021 2,593 Interest Expense 1,790 1,616 Net Interest Income 1,231 977 +26% Other Income 287 337 Total Income 1,518 1,314 +16% Operating Expenses 975 738 +32% Employee Expenses 506 393 Other Expenses 469 345 O
Slide 39: Balance Sheet – as at December 31, 2022
Balance Sheet – as at December 31, 2022 (INR crores) Dec-22 Mar-22 Dec-21 Capital & Liabilities Shareholders Equity 4,422 4,049 3,934 Deposits 39,506 34,692 32,231 Borrowings 3,825 4,082 3,208 Other Liabilities and Provisions 2,113 1,970 1,805 Total 49,866 44,793 41,178 (INR crores) Dec-22 Mar-22 De
Slide 40: Profit & Loss Statement – Trend
Profit & Loss Statement – Trend (INR crores) FY2019 FY2020 FY2021 FY2022 9M-FY2023 Interest Income 3,041 3,537 3,458 3,513 3,021 Interest Expense 1,892 2,272 2,171 2,155 1,790 Net Interest Income 1,149 1,265 1,287 1,358 1,231 Other Income 344 388 445 452 287 Total Income 1,493 1,653 1,732 1,810 1,51
Slide 41: Balance Sheet – Trend
Balance Sheet – Trend (INR crores) Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 Capital & Liabilities Shareholders Equity 3,116 3,422 3,759 4,049 4,422 Deposits 28,435 30,370 29,704 34,692 39,506 Borrowings 2,723 3,408 4,482 4,082 3,825 Other Liabilities and Provisions 1,518 1,305 1,657 1,970 2,113 Total 35,7
Slide 42: Shareholding Pattern
Shareholding Pattern Key Non Promoter Shareholders % Shareholding as on December 31, 2022 Tata Mutual Fund - Tata Small Cap Fund* 4.77 5.68% HDFC Small Cap Fund 4.48 14.85% 24.64% DSP Small Cap Fund 4.23 India Advantage Fund S4 I 4.01 ICICI Prudential Mutual Fund* 3.37 Franklin India Smaller Compani
Slide 43: ESG Initiatives
ESG Initiatives Environment Social Governance • Total number of employees volunteered: • Sustainable livelihood created & lives • The Board of Directors comprise executive 1,205 impacted (Cuttack district, Odisha): and non-executive directors 1,11,729 individuals • Total number of trees planted till
Slide 44: Digital Initiatives
Digital Initiatives • Customer self service, in-branch kiosk enabled for real time KYC updation by existing customers of the Bank • Customer login for KYC verification enabled via valid DCB Debit Card & PIN or biometric authentication via Aadhaar/ VID 43
Slide 45: CSR Initiatives
CSR Initiatives Jal Sanrakshan, 29.7 crore Restoration of 6 Water litres of water harvesting Harvest Structures potential created (WHS) Sustainable Miyawaki Urban Plantation of Plantation of 46,920 Livelihood for 200 90,000+ trees Plants (Mumbai) Women Self Help (Delhi, Pune & Mumbai) Groups We Cont
Slide 46: CSR Initiatives
CSR Initiatives Sustainable Livelihood & Biodiversity Enhancement from Beekeeping • Livelihood skill development for 790 women • 250 women members of various Self Help members of various Self Help Groups (SHG) & Groups (SHG) undergone livelihood skills 40 youth in beekeeping indigenous bees – traini
Slide 47: 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 Asian Leaders Awards For Branding, Marketing and CSR for 2022 Livelihood Improvement Project (LIP
Slide 48: Happy Customers
Happy Customers Customer Feedback “Greetings of the day! We sincerely thank you from the bottom of our hearts for inviting us to yesterday's customer meet ; and a successful one at that. As usual, Team-DCB displayed outstanding esprit de corps and 'josh' in managing the event so exceedingly well. Pr
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