Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q3 FY2025 Earnings Presentation
53 slides from Dcb Bank's earnings presentation, Jan 24, 2025
Slide 1: Cover letter to stock exchanges
Ref. No.CO:CS:RC:2024-25:292 January 24, 2025 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 Presentat
Slide 2: DCB Bank Limited Investor Presentation – Q3FY25
DCB Bank Limited Investor Presentation – Q3FY25
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: Q3FY25 Highlights
Q3FY25 Highlights Total business has crossed INR 1,00,000 crores Steady improvement in core fee Steady investments in front line + branch infrastructure: 457 income: INR 141 crores Q3FY25 Branches, six branches added in Q3FY25 Strong capital adequacy ratio: Advances growth: +22.67% Y-o-Y 16.29% Top
Slide 5: Performance Highlights – Q3FY25
Performance Highlights – Q3FY25 INR 71,567 crores INR 47,780 crores INR 56,678 crores ( +19.67% Y-o-Y ) ( +22.67% Y-o-Y ) ( +20.28% Y-o-Y ) Balance Sheet Size Advances Deposits INR 151 crores 3.11% 1.18% ( +19.64% Y-o-Y ) (Q3FY24: 3.43%) (Q3FY24: 1.22%) Profit After Tax Gross NPA Net NPA 25.09% 16.2
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 457 • 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 31-Dec-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 11,896 11,910 457 430 11,339 428 451 445 418 Jun-24 Sep-24 Dec-24 Jun-24 Sep-24 Dec-24 Jun-24 Sep-24 Dec-24 Region wise Branches (%) State wise Branches (%) 16% 19% 20% 28% 4% 12% 4% 5% 25% 8% 5% 5% 8% 28% 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 Interest certificate & Positive Pay feature enabled • Blockchain – adopted ‘Blockchain’ for use cases such as multi authentication for ATM management • NEFT/ RTG
Slide 16: Leading to Enhanced Digital Footprint
Leading to Enhanced Digital Footprint Digital Transactions (% of Total Transactions) Personal Internet Banking Transactions (In Lakhs) 98% 2.9 3.0 98% 98% 2.6 97% 2.3 2.4 96% 97% 97% 96% 97% 96% 96% 95% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 UPI Transactions (In Lakhs)
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-Executive (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 A
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: 34+ & Commercial V
Slide 20: Business Update
Business Update
Slide 21: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 31-Dec-24) 1.0% 5.3% 11.3% 3.4% 4.6% 2.6% 0.2% 47,780 1.8% 6.3% 44,465 42,181 3.2% 40,925 38,951 3.8% 23.6% 3.2% 44.5% 8.8% Agri & Inclusive Banking (AIB) Mortgages Mortgages Tractors Corporate banking Gold Loan Kissan Credit Card MFI+BC Co
Slide 22: Update on Advances
Update on Advances Product Mix (As on 31-Dec-24) Agri & SME Dec. 31, Retail Corporate Products (INR Crores) Inclusive + 2024 Banking Banking Banking MSME (Total) Mortgages 21,240 4,223 - - 25,463 Co- lending 5,392 - - - 5,392 Gold Loans 1,606 857 - - 2,463 Corporate - - - 2,996 2,996 SME + MSME - 10
Slide 23: Agri & Inclusive Banking (AIB) – A Bank Within a Bank
Agri & Inclusive Banking (AIB) – A Bank Within a Bank Product Mix Headcount Branches 210 2,458 2,527 2,404 207 203 1% 9% 8% Jun-24 Sep-24 Dec-24 Jun-24 Sep-24 Dec-24 38% Region wise Branches State wise Branches 14% 1% 16% 26% 19% 5% 16% 5% 14% 40% 5% 6% 15% 10% 12% Mortgages Tractors Kissan Credit C
Slide 24: Disbursements
Disbursements Key Product wise Disbursement Trends (INR crores) 5,207 374 4,729 4,757 4,307 429 321 373 4,138 259 608 567 272 341 1,695 603 1,140 1,131 1,142 1,097 696 634 662 744 475 500 586 541 327 448 1,494 1,513 1,440 1,483 1,243 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Mortgages SME + MSME Corporate
Slide 25: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (%) 56,678 49,353 11.2% 13.4% 13.5% 13.3% 17.0% 15.6% 10.4% 8.8% 7.8% 7.6% 41,239 7.5% 11.0% 34,692 42,456 70.6% 70.0% 30,370 29,704 77.0% 80.6% 81.2% 36,511 84.2% 30,343 25,411 78.4% 77.8% 78.7% 79.1% 76.9% 23,851 22,917 72.0% 12,
Slide 26: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 2.0% 2.3% 1.2% 3.4% 4.1% Instruments CRISIL CARE 8.2% 8.9% 8.2% 7.7% 7.4% Long Term – Subordinated Debt AA-/Stable AA-/Stable 66.3% 65.7% 67.6% 66.1% 66.3% Certificates of Deposits A1+ A1+ 23.5% 23.1% 23.0% 22.8% 22.2% Short – Term Fixed Deposits A1
Slide 27: Asset Quality
Asset Quality 4.00% 3.43% 76.42% 77.30% 76.00% 75.62% 74.76% 3.23% 3.33% 3.29% 3.50% 3.11% 3.00% 2.50% 2.00% 1.22% 1.18% 1.17% 1.18% 1.50% 1.11% 1.00% 0.50% 0.00% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA Dec-23 Mar-24 Jun-24 Sep-
Slide 28: Restructured Advances
Restructured Advances Dec-2023 Mar-2024 Dec-24 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 1.337 178 1,159 1,239 166 1,073 998 134 864 NPA 426 239 187 427 237 190 401 229 172 Total 1,763 417 1,346 1,666 40
Slide 29: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Dec-23 Mar-24 Jun-24 Sep-24 Oct-24 Nov-24 Dec-24 Business Loans (LAP) 98.8% 98.9% 98.9% 98.5% 98.7% 98.8% 99.0% Home Loans 98.9% 99.1% 98.9% 98.8% 99.0% 98.8% 98.9% CV Loans 95.7% 97.0% 96.5% 93.7% 96.0% 96.7% 96.5% Collection Effi
Slide 30: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 3.33% 3.71% 2.54% 3.29% 1.18% 1.18% 3.67% 3.59% 2.31% 2.20% 1.17% 3.11% Jun-24 Sep-24 Dec-24 Jun-24 Sep-24 Dec-24 Jun-24 Sep-24 Dec-24 Jun-24 Sep-24 Dec-24 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 31: Provisions – Balance Sheet
Provisions – Balance Sheet Provisions – Balance Sheet (INR crores) Jun-2024 Sep-2024 Dec-2024 Performing Advances (A) 41,703 43,965 47,237 Provisions excluding NPA Provision (B) 467 471 480 Provision as a percentage of Performing Advances (B/A) 1.12% 1.07% 1.02% 30
Slide 32: Key Ratios (Q-o-Q)
Key Ratios (Q-o-Q) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.71% 11.44% 11.50% 11.39% 11.44% 7.14% 7.19% 7.17% 7.20% 7.02% 6.95% 7.08% 7.10% 7.09% 7.12% 3.62% 3.48% 3.39% 3.27% 3.30% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY2
Slide 33: 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 34: Capital Adequacy Ratio
Capital Adequacy Ratio Capital Adequacy Ratio (%) Risk Weighted Assets (INR crores) 35,184 35,367 16.59% 15.95% 16.29% 15.72% 15.55% 34,225 2.06% 1.95% 2.75% 32,834 2.03% 1.90% 31,366 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Risk Weighted Assets / Total Assets (%) 14.53% 14.00% 13.69% 13.65% 13.54% 53.05%
Slide 35: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 139 141 205 184 118 114 98 143 136 124 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 34
Slide 36: Financial Highlights
| Financial Highlights
Slide 37: Profit & Loss Statement – Q3FY25
Profit & Loss Statement – Q3FY25 (INR crores) Q3FY25 Q3FY24 Y-o-Y Q2FY25 Q-o-Q FY24 Interest Income 1,671 1,374 1,568 5,362 Interest Expense 1,128 900 1,059 3,434 Net Interest Income 543 474 +15% 509 +7% 1,928 Other Income 184 124 +49% 205 -10% 474 - Commission, Exchange and Brokerage 141 98 139 388
Slide 38: Profit & Loss Statement – Q-o-Q
Profit & Loss Statement – Q-o-Q (INR crores) Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Interest Income 1,374 1,445 1,489 1,568 1,671 Interest Expense 900 937 992 1,059 1,128 Net Interest Income 474 508 497 509 543 Other Income 124 136 143 205 184 - Commission, Exchange and Brokerage 98 118 114 139 141 - Pr
Slide 39: Balance Sheet – Q-o-Q
Balance Sheet – Q-o-Q (INR crores) Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Capital & Liabilities Shareholders Equity 4,912 5,071 5,185 5,351 5,489 Deposits 47,120 49,353 51,690 54,532 56,678 Borrowings 5,372 6,219 5,343 6,820 7,389 Other Liabilities and Provisions 2,400 2,394 2,298 2,252 2,011 Total 59,8
Slide 40: 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 41: 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 42: Shareholding Pattern
Shareholding Pattern Shareholding as on Dec 31, 2024 4.58% Key Non-Promoter Institutional Shareholders % 14.72% HDFC Mutual Fund* 5.28 Tata Mutual Fund* 5.17 38.74% Franklin Templeton Asset Management (India) Pvt Ltd* 4.56 ICICI Venture Funds Management Company Limited (India Advantage Fund S4 I) 3.
Slide 43: 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 44: Digital Initiatives (1/4)
Digital Initiatives (1/4) Enhancing Capacity through Technology Investments Strategic Investments done to strengthen core systems, ensuring stability , scalability and designing future ready, architecturally advanced framework CUBE – Branch Onboarding Treasury Upgrade Core Lending Solution Upgrade •
Slide 45: Digital Initiatives (2/4)
Digital Initiatives (2/4) Creating / Enhancing Customer Experience Technology enhancements to elevate customer journey and empowering personalized experiences, driving innovation and focused on deeper engagement DCB My Documents Zippi / Zippi+ NiyoX Trade Zone eBG Payment Services • Documents portal
Slide 46: Digital Initiatives (3/4)
Digital Initiatives (3/4) Creating competitive advantage Technology innovations helping to create a competitive advantage for our products / services by enabling efficiency and differentiation in the market CBDT/ GST Launch Secure Credit Card Co-lending • Direct Integration with ITD portal for • Rel
Slide 47: Digital Initiatives (4/4)
Digital Initiatives (4/4) DCB Bank Security Architecture... • Ensure availability of Banking Services • Protect Sensitive Information Information and Cyber • Impart Security Awareness Security Strategy • Manage Information and Cyber Risk • Board Directives, Strategy Implementation • Expertise and ov
Slide 48: CSR Initiatives
CSR Initiatives Green Mile part 2, dry waste collection, Infrastructure and material recovery sanitation facility, plastic Deshnok Oran: Restoring recycling & wet waste Sacred Grove for development to reduce human-wildlife management for Biodiversity, People and organic fertilizer, Water Harvesting,
Slide 49: Plantation of 50,000 trees for carbon neutrality
Plantation of 50,000 trees for trees for carbon neutrality …Sonebhadra district, Uttar Pradesh The agroforestry plantation project also positively Carbon Sequestration Total of 33 farmers have 644 male workers and 547 impacts the wider Planted 50,000 fruiting Work was generated for potential is 10,0
Slide 50: Pokkali rice & shrimp cultivation with saline water
Pokkali rice & shrimp cultivation with saline water ...based sustainable livelihood development project, Vypin Island, Kerala Adopting sustainable Pokkali farming Revitalizing Pokkali rice-shrimp farming 5 stakeholder consultation meetings More than 50 stakeholders actively practices contributes to
Slide 51: Awards & Accolades (1/2)
Awards & Accolades (1/2) 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 52: Awards & Accolades (2/2)
Awards & Accolades (2/2) ET Now Best Brands for 2024 Ambition Box Employee Choice Award (ABECA) 2024 • DCB Bank is one of the ET Now Best Brands for 2024 • DCB Bank has been recognized by Ambition Box and won the Ambition Box Employee Choice Award (ABECA) 2024. ABECA 2024 is India's largest • ET Edg
Slide 53: Thank you
T h a n k 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 52 52