DCB Bank Limited · NSE:DCBBANK

DCB Bank — Development Credit Bank — FY2008-09 Earnings Presentation

26 slides from DCB Bank's earnings presentation, Jun 24, 2009

  1. Slide 1: Annual Results – FY 2008-09

    Development Credit Bank Ltd. Annual Results – FY 2008-09 June 24, 2009 Marine Plaza, Mumbai Private & Confidential © Copyright IBM Corporation 2008

  2. Slide 2: Safe Harbor

    Safe Harbor Neither the information nor any opinions expressed in this presentation constitutes an offer, or invitation to make an offer, or to buy any securities issued by the Bank. This presentation contains predictions, estimates or other information regarding the Bank’s operations which are forw

  3. Slide 3: DCB strengths

    DCB strengths • In India since 1930, deep roots • Dependable customer base in Retail, SME and mid Corporate • Ismaili community loyalty • 80 branches in 28 cities. (Favors SME) • Comprehensive product range • Strong management team and board • Modern systems and infrastructure to support growth (Fin

  4. Slide 4: Share Holding Patterns

    Share Holding Patterns As on 31-Mar-2009 As on 31-Mar-2008 Sr. Category No. of % of Paid-up No. of % of Paid-up Shareholders Capital Shareholders Capital I FOREIGN HOLDING a AKFED 2 25.10 2 25.10 b FOREIGN INST. INVESTORS 15 5.65 35 30.03 c FOREIGN COMPANIES 3 9.00 3 9.23 d NON RESIDENT INDIANS 739

  5. Slide 5: Net Interest Income (NII)

    Net Interest Income (NII) Rs. in crores 220 197 200 174 180 160 140 120 13% 45% 120 100 80 60 Y-o-Y Y-o-Y 40 20 0 FY 07 FY 08 FY 09 Private & Confidential © Copyright IBM Corporation 2008 5

  6. Slide 6: Net Interest Margin (%)

    Net Interest Margin (%) 3.5 2.8 2.8 3.0 2.7 2.5 2.0 % 1.5 1.0 0.5 0.0 FY 07 FY 08 FY 09 Private & Confidential © Copyright IBM Corporation 2008 6

  7. Slide 7: Yield on Total Advances (%)

    Yield on Total Advances (%) 16% 13.3% 13.2% 12% 10.1% 8% 4% 0% FY 07 FY 08 FY 09 Yield on Total Advances Private & Confidential © Copyright IBM Corporation 2008 7

  8. Slide 8: Non Interest Income

    Non Interest Income Rs. in crores Q4 Q4 Growth FY 09 FY 08 Growth FY 09 FY 08 Commission, fees & brokerage 13.1 13.2 (7.2) 59.0 67.3 (12.2) Commission on Life Insurance 3.8 3.2 23.2 15.6 10.7 45. 2 Commission from Mutual Fund 0.1 2.3 (94.3) 2.2 7.3 (69.6) Profit on sale of investments/IPO 0.2 1.9 (8

  9. Slide 9: Deposit Composition

    Deposit Composition Rs. in crores 31-Mar-08 31-Mar-09 CASA 1,473 1.438 Term Deposit 4,084 2,810 Others 519 399 Total Deposits 6,075 4,647 Retail Deposit / Total Deposit 51.9% 67.9% CASA Ratio 24.2% 30.9% Private & Confidential © Copyright IBM Corporation 2008 9

  10. Slide 10: CASA

    CASA Rs. in crores 7,000 6,075 6,000 4,415 4,647 5,000 4,000 3,000 2,000 1,473 1,438 1,252 1,000 28% 24% 31% 0 FY 07 FY 08 FY 09 Total Deposits CASA Private & Confidential © Copyright IBM Corporation 2008 10

  11. Slide 11: Balance Sheet Size

    Balance Sheet Size Rs. in crores 7,582 8,000 7,000 5,943 6,000 5,262 5,000 4,000 3,000 2,000 1,000 0 FY 07 FY 08 FY 09 Private & Confidential © Copyright IBM Corporation 2008 11

  12. Slide 12: Net Advances

    Net Advances as on Mar. 31, 2008 as on Mar. 31, 2009 Others LATD MFRB MFRB 3% 2% 2% 8% HL / HE Corporate LATD SME Corporate 4% 46% 4% 4% 28% Others 5% Agri Comm. 5% CE 5% SME 14% HL / HE PL CV 6% 10% 11% Agri Comm. 7% CE CV PL 13% 5% 18% Mar. 31, 2008 Mar 31, 2009 Retail Advances / Total Advances 46

  13. Slide 13: Non Performing Assets (%)

    Non Performing Assets (%) 10 8.8 8 6 5.1 % 3.9 4 1.6 1.5 2 0.7 0 FY 07 FY 08 FY 09 Gross NPA Net NPA Private & Confidential © Copyright IBM Corporation 2008 13

  14. Slide 14: Provision Coverage

    Provision Coverage Rs. in crores 31-Mar-08 31-Mar-09 Gross Advance (excluding Bills Rediscounted) 4,105 3.480 NPA Provision 36 206 Net Advance 4,069 3,274 NPA Coverage Ratio 48.4% 53.4% Unsecured PL NPA Coverage Ratio 66.2% 76.4% * Standard Assets provisioning surplus of Rs. 11 crs. as on 31st March

  15. Slide 15: Operating Profit

    Operating Profit Rs. in crores 120 110 100 75 80 60 51 40 20 8 0 Q4 FY 08 FY 08 Q4 FY 09 FY 09 Private & Confidential © Copyright IBM Corporation 2008 15

  16. Slide 16: Net Profit After Tax

    Net Profit After Tax Rs. in crores 38 40 20 0 -20 -8 -40 -60 -91 -80 -88 -100 Q4 FY 08 FY 08 Q4 FY 09 FY 09 Private & Confidential © Copyright IBM Corporation 2008 16

  17. Slide 17: Capital Adequacy Ratio (%)

    Capital Adequacy Ratio (%) 16.0 13.4 13.4 14.0 11.3 1.6 1.8 12.0 10.0 2.9 % 8.0 11.8 11.6 6.0 8.4 4.0 2.0 0.0 FY 07 FY 08 FY 09 Tier I Tier II Private & Confidential © Copyright IBM Corporation 2008 17

  18. Slide 18: Cost Income Ratio (%)

    Cost Income Ratio (%) 120% 100% 80.7% 76.3% 80% 68.5% 60% 40% 20% 0% FY 07 FY 08 FY 09 Cost Income Ratio Private & Confidential © Copyright IBM Corporation 2008 18

  19. Slide 19: Financials 2008-09

    Financials 2008-09 Rs. in crores Q4 Q4 Growth FY 09 FY 08 Growth FY 09 FY 08 Total Advances 3,274.0 4,068.8 (19.5%) 3,274.0 4,068.8 (19.5%) Total Deposits 4,646.9 6,074.9 (23.5%) 4,646.9 6,074.9 (23.5%) Net Interest Income 40.2 60.7 (33.8%) 197.2 173.9 13.4% Non Interest Income 24.9 59.4 (58.1%) 120

  20. Slide 20: Investments

    Investments Rs. in crores As at 31st March, 2009 Total Amount SLR Investments 1,268 Non-SLR Investments 354 Total 1,622 AFS 463 HFT 78 HTM 1,081 Total 1,622 Modified duration of HTM is 2.80 Modified duration of AFS+HFT is 0.19 Private & Confidential © Copyright IBM Corporation 2008 20

  21. Slide 21: Highlights

    Highlights • NIM maintained at 2.8% • CASA ratio improved to 30.9% up from 24.2% • Robust bancassurance business – up 45% year on year • Retail deposits contribution increased from 52% to 68%, liquidity well managed What went • Strong performance in lending to Agri / Microfinance well? • Retail unse

  22. Slide 22: Summary

    Summary • Sudden change in environment in mid-2008 resulted in increase in provisions for NPAs. Unsecured personal loans largest contributor to the increase. Also, DCB has adopted stringent provisioning norms in unsecured personal loans • Bank acted quickly to de-risk balance sheet, exited retail lo

  23. Slide 23: Outlook - 6 to 12 months

    Outlook - 6 to 12 months • Month on month personal loan provisions is expected to stabilize and then start to decline by end of 2009-10 • Cost reduction initiatives will take effect • Initially, month on month income is expected to decline before trending up as assets start to build up • Operating p

  24. Slide 24: Approach

    Approach r ate le ce Ac p e ed e s s ncrea I Stabilize 2009 2010 2011 2012 2013 Private & Confidential © Copyright IBM Corporation 2008 24

  25. Slide 25: Strategy

    Strategy Strategy 1. Grow assets prudently - secured retail, SME, mid Corporate, Agri and Microfinance 2. Deepen relationship with customers (Retail, SME and mid Corporate and Ismaili community) 3. Further increase share of retail to total deposits, maintain CASA ratio around 25 to 30% 4. Step up fe

  26. Slide 26: Q & A

    Q&A Private & Confidential © Copyright IBM Corporation 2008 26

Development Credit Bank — FY2008-09 Earnings Presentation on 6ix