Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q3 FY2024 Earnings Presentation
51 slides from Dcb Bank's earnings presentation, Jan 24, 2024
Slide 1: Stock exchange cover letter for Q3FY24 investor presentation
Ref. No.CO:CS:RC:2023-24:279 January 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 - 400 023. BSE Scrip Code No.: 532772 NSE SYMBOL: DCBBANK Dear Sirs, Sub: Investor Presentat
Slide 2: DCB Bank Limited Investor Presentation – Q3FY24
DCB Bank Limited Investor Presentation – Q3FY24
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: Q3FY24 Highlights
Q3FY24 Highlights Steady improvement in core fee income: INR 98 crores Q3FY24 Credit cost: 0.28% Steady investments in front line + branch infrastructure: 440 Branches, one branch added in Q3FY24 Strong capital adequacy ratio: 15.72% Advances growth: +18.16% Y-o-Y Continued granular loan book Deposi
Slide 5: Performance Highlights – Q3FY24
Performance Highlights – Q3FY24 INR 59,804 crores INR 38,951 crores INR 47,120 crores ( +19.93% Y-o-Y ) ( +18.16% Y-o-Y ) ( +19.27% Y-o-Y ) Balance Sheet Size Advances Deposits INR 127 crores 3.43% 1.22% ( +11.18% Y-o-Y ) (Q3FY23: 3.62%) (Q3FY23: 1.37%) Profit After Tax Gross NPA Net NPA 26.13% 15.7
Slide 6: Performance Highlights – FY2023
Performance Highlights – FY2023 INR 52,366 crores INR 34,378 crores INR 41,239 crores ( +16.91% Y-o-Y ) ( +18.15% Y-o-Y ) ( +18.87% Y-o-Y ) Balance Sheet Size Advances* Deposits INR 466 crores 3.19% 1.04% ( +61.93% Y-o-Y ) (FY22: 4.32%) (FY22: 1.97%) Profit After Tax Gross NPA Net NPA 26.42% 17.55%
Slide 7: About Us
About Us
Slide 8: About Us
About Us • New generation private sector bank 440 • 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 • Mortgage, MSME/SME, Agri and Gold Loan focus • Prom
Slide 9: MSME/SME Opportunity
MSME/SME Opportunity Number of working enterprises – 64 million, Employment – 111 million MSMEs play a pivotal role in the economic and social Urban 49%, Rural – 51% development of the country Manufacturing- 31%, Trade – 36%, 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 • ATM Card • Bill / Utility Payments • Gold Loan • Loan A
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 31-Dec-23: 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 10,024 10,539 9,579 416 440 414 439 409 436 Jun-23 Sep-23 Dec-23 Jun-23 Sep-23 Dec-23 Jun-23 Sep-23 Dec-23 Region wise Branches (%) State wise Branches (%) 18% 18% 16% 29% 4% 12% 5% 25% 5% 8% 5% 5% 8% 28% 6% 8% Metro Urban Semi Urban Rura
Slide 15: Digital Engagement / Technology Innovation
Digital Engagement / Technology Innovation Mobile Applications Technology Adoption • Mobile Banking for multilingual Retail customers with Interest certificate & Positive Pay feature enabled • Blockchain – adopted ‘Blockchain’ for use cases such as 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) 94% 94% 95% 96% 96% 2.5 2.4 2.3 2.3 2.3 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 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 Abhijeet Roy Abhijit Bose Ajay Mathur Ajit Kumar Singh Ashu Sawhney • Designation: Head - Admin • Designation: Chief Credit Officer • Designation: Head – Collections • Designation: Head – Treasury, • Designation: Head – Human Projects Properties & Procurement • Year
Slide 20: Business Update
Business Update
Slide 21: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 31-Dec-23) 0.6% 6.0% 8.6% 38,951 3.1% 5.0% 2.7% 7.8% 0.4% 1.9% 37,276 3.9% 35,474 3.7% 23.9% 34,378 3.3% 32,966 45.0% 8.0% 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 199 1,929 2,038 1,865 198 196 11% 2% Jun-23 Sep-23 Dec-23 Jun-23 Sep-23 Dec-23 8% 34% Region wise Branches State wise Branches 2% 16% 13% 18% 26% 5% 14% 5% 15% 40% 6% 7% 15% 11% 12% Mortgages Tractors Kissan Credit
Slide 23: Disbursements
Disbursements Product wise Disbursement Trends (INR crores) 5,073 290 4,598 4,557 376 4,307 276 4,237 281 301 232 366 259 423 341 1,364 1,036 1,126 954 1,142 540 622 892 791 744 838 968 384 426 327 1,665 1,494 1,395 1,453 1,466 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Mortgages SME + MSME Corporate bankin
Slide 24: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (%) 47,120 41,239 11.2% 13.4% 13.5% 13.2% 20.1% 17.0% 10.4% 8.8% 7.8% 7.7% 34,692 8.2% 11.0% 30,370 29,704 28,435 70.0% 34,809 73.1% 70.6% 77.0% 80.6% 30,343 83.1% 25,411 21,625 23,851 22,917 78.4% 77.8% 78.7% 79.1% 71.7% 72.0% 12,
Slide 25: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 0.6% 1.0% 1.4% 2.3% 2.0% Instruments CRISIL 8.2% 8.1% 8.5% 7.9% 8.2% Long Term – Subordinated Debt AA-/Stable 66.0% 66.9% 66.7% 67.3% 66.3% Certificates of Deposits A1+ 25.2% 24.0% 23.4% 22.5% 23.5% Short – Term Fixed Deposits A1+ Dec-22 Mar-23 Jun-
Slide 26: Asset Quality
Asset Quality 4.00% 3.62% 74.68% 79.34% 77.07% 3.36% 75.49% 3.43% 76.42% 3.19% 3.26% 3.50% 3.00% 2.50% 2.00% 1.37% 1.28% 1.50% 1.19% 1.22% 1.04% 1.00% 0.50% 0.00% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA Dec-22 Mar-23 Jun-23 Sep-
Slide 27: Restructured Advances
Restructured Advances Jun-2023 Sep-2023 Dec-2023 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 1,618 209 1,409 1,461 194 1,267 1,337 178 1,159 NPA 361 176 185 394 196 198 426 239 187 Total 1,979 385 1,594 1,
Slide 28: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Dec-22 Mar-23 Jun-23 Sep-23 Oct-23 Nov-23 Dec-23 Business Loans (LAP) 98.6% 98.8% 98.4% 98.6% 98.5% 98.5% 98.8% Home Loans 98.9% 98.7% 98.6% 98.7% 98.8% 98.9% 98.9% CV Loans 94.8% 96.0% 93.0% 94.0% 94.3% 94.0% 95.7% Collection Effi
Slide 29: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 3.43% 1.28% 4.63% 4.48% 3.13% 3.36% 2.69% 3.99% 2.55% 3.26% 1.22% 1.19% Jun-23 Sep-23 Dec-23 Jun-23 Sep-23 Dec-23 Jun-23 Sep-23 Dec-23 Jun-23 Sep-23 Dec-23 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 30: Provisions – Balance Sheet
Provisions – Balance Sheet Provisions – Balance Sheet (INR crores) Jun-2023 Sep-2023 Dec-2023 Performing Advances (A) 35,080 36,827 38,499 Provisions excluding NPA Provision (B) 532 515 467 Provision as a percentage of Performing Advances (B/A) 1.52% 1.40% 1.21% 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 11.67% 11.55% 11.56% 11.44% 10.99% 7.02% 6.95% 4.18% 6.85% 6.77% 4.02% 6.70% 6.61% 3.83% 6.33% 3.69% 6.41% 5.98% 3.48% 6.05% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY2
Slide 32: Key Ratios (Y-o-Y)
Key Ratios (Y-o-Y) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.06% 11.05% 6.62% 3.93% 10.71% 6.49% 3.59% 3.56% 6.16% 6.11% 6.05% 6.03% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Cost to Average Assets Cost to Income Ratio Return on Assets Return on E
Slide 33: Capital Adequacy Ratio
Capital Adequacy Ratio Capital Adequacy Ratio (%) Risk Weighted Assets (INR crores) 31,366 17.55% 30,108 17.09% 16.55% 29,088 16.26% 2.37% 15.72%* 28,221 2.31% 1.79% 2.27% 26,860 2.03% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Risk Weighted Assets / Total Assets (%) 15.18% 14.78% 14.47% 14.28% 13.69% 53.86
Slide 34: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 122 124 97 98 107 107 91 95 75 70 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 33
Slide 35: Financial Highlights
| Financial Highlights
Slide 36: Profit & Loss Statement – Q3FY24
Profit & Loss Statement – Q3FY24 (INR crores) Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q FY23 Interest Income 1,374 1,072 1,306 4,200 Interest Expense 900 626 830 2,483 Net Interest Income 474 446 +6% 476 0% 1,717 Other Income 124 95 +30% 107 +15% 409 - Commission, Exchange and Brokerage 98 70 97 303 - Profit
Slide 37: Profit & Loss Statement – Q-o-Q
Profit & Loss Statement – Q-o-Q (INR crores) Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Interest Income 1,072 1,179 1,238 1,306 1,374 Interest Expense 626 693 767 830 900 Net Interest Income 446 486 471 476 474 Other Income 95 122 107 107 124 - Commission, Exchange and Brokerage 70 91 75 97 98 - Profit/(Los
Slide 38: Balance Sheet – Q-o-Q
Balance Sheet – Q-o-Q (INR crores) Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Capital & Liabilities Shareholders Equity 4,422 4,566 4,656 4,784 4,912 Deposits 39,506 41,239 43,009 45,496 47,120 Borrowings 3,825 4,118 4,730 5,190 5,372 Other Liabilities and Provisions 2,113 2,443 2,579 2,240 2,400 Total 49,8
Slide 39: Profit & Loss Statement – Trend
Profit & Loss Statement – Trend (INR crores) FY19 FY20 FY21 FY22 FY23 Y-o-Y Interest Income 3,041 3,537 3,458 3,513 4,200 +20% Interest Expense 1,892 2,272 2,171 2,155 2,483 +15% Net Interest Income 1,149 1,265 1,287 1,358 1,717 +26% Other Income 344 388 445 452 409 -9% - Commission, Exchange and Br
Slide 40: Balance Sheet – Trend
Balance Sheet – Trend (INR crores) Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Y-o-Y Capital & Liabilities Shareholders Equity 3,116 3,422 3,759 4,049 4,566 +13% Deposits 28,435 30,370 29,704 34,692 41,239 +19% Borrowings 2,723 3,408 4,482 4,082 4,118 +1% Other Liabilities and Provisions 1,518 1,305 1,657 1,
Slide 41: Shareholding Pattern
Shareholding Pattern Shareholding as on December 31, 2023 Key Non-Promoter Shareholders % 5.91% Tata Mutual Fund* 5.19 14.80% HDFC Small Cap Fund 4.47 28.83% Franklin Templeton Asset Management (India) Pvt Ltd* 4.23 DSP Small Cap Fund 4.22 ICICI Venture Funds Management Company Limited 4.00 (India A
Slide 42: ESG Initiatives
ESG Initiatives Environment Social Governance • Total number of employees volunteered: • Sustainable livelihood created & lives • The Board of Directors comprise executive 1,652 impacted (Cuttack district, Odisha): and non-executive directors • Total number of trees planted till date: 2,74,168 indiv
Slide 43: Digital Initiatives (1/2)
Digital Initiatives (1/2) 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 • Benefits envisaged: validations
Slide 44: Digital Initiatives (2/2)
Digital Initiatives (2/2) 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 45: CSR Initiatives (1/3)
CSR Initiatives (1/3) Trees for Elephants, East Open Traditional Well Trees for Coastal Ecosystem, Singhbum dist., Jharkhand. at Lalbagh Botanical Chengalpattu dist., Tamil Plantation of 25,000 multi Garden, Bengaluru, Nadu. Plantation of 20,000 species trees Karnataka Mangrove Trees Solid Waste Nat
Slide 46: CSR Initiatives (2/3)
CSR Initiatives (2/3) Implementing Restoration & Innovative Intervention for Dry Land Agriculture Farmers, Raichur & Koppal dist., Karnataka Outcomes • Bioresource centre in the Gram Panchayat for knowledge dissemination used by at least 100 farmers, trained in land restoration and regularly use the
Slide 47: CSR Initiatives (3/3)
CSR Initiatives (3/3) Restoring grassland for biodiversity conservation, sustainable livelihood & climate mitigation. Kendur, Pune dist., Maharashtra Outcomes • Restoring grassland & reversing grass degradation, pastoral areas • Plantation of 6,000 to 8,000 grass sapling and 80 to 100 shrubs, trees
Slide 48: Awards & Accolades (1/3)
Awards & Accolades (1/3) Won Gold Award in Product Innovation Category – Infosys Finacle Innovation Awards 2023 • DCB Zippi+ which is a brand new native banking app, available for free on Android and iOS, provides a fully digital onboarding experience for customers to start a relationship with DCB B
Slide 49: Awards & Accolades (2/3)
Awards & Accolades (2/3) 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 opport
Slide 50: Awards & Accolades (3/3)
Awards & Accolades (3/3) 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 51: 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 50 50