Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q2 FY2025 Earnings Presentation
55 slides from Dcb Bank's earnings presentation, Oct 24, 2024
Slide 1: Cover letter to stock exchanges
Ref. No.CO:CS:RC:2024-25:221 October 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 Presentat
Slide 2: DCB Bank Limited Investor Presentation – Q2FY25
DCB Bank Limited Investor Presentation – Q2FY25
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: Q2FY25 Highlights
Q2FY25 Highlights Steady improvement in core fee income: INR 139 crores Q2FY25 Credit cost: 0.27% Steady investments in front line + branch infrastructure: 451 Branches, six branches added in Q2FY25 Strong capital adequacy ratio: 15.55% Advances growth: +19.29% Y-o-Y Continued granular loan book Dep
Slide 5: Performance Highlights – Q2FY25
Performance Highlights – Q2FY25 INR 68,955 crores INR 44,465 crores INR 54,532 crores ( +19.49% Y-o-Y ) ( +19.29% Y-o-Y ) ( +19.86% Y-o-Y ) Balance Sheet Size Advances Deposits INR 155 crores 3.29% 1.17% ( +22.62% Y-o-Y ) (Q2FY24: 3.36%) (Q2FY24: 1.28%) Profit After Tax Gross NPA Net NPA 25.61% 15.5
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 451 • 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-Sep-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 11,325 11,896 11,910 428 451 445 418 418 442 Mar-24 Jun-24 Sep-24 Mar-24 Jun-24 Sep-24 Mar-24 Jun-24 Sep-24 Region wise Branches (%) State wise Branches (%) 19% 19% 16% 28% 4% 12% 4% 5% 25% 8% 5% 5% 8% 28% 6% 8% 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: Digital Engagement / Technology Innovation
Digital Engagement / Technology Innovation Payments • eNACH payment mode is enabled in Finone Neo. Alliances & Investments • Bank is digitally acquiring ETB customers also in partnership with NIYO. • Co-lending- Bank has 11 active partners. • Mutual Fund Investment application is upgraded with featu
Slide 17: Leading to Enhanced Digital Footprint
Leading to Enhanced Digital Footprint Digital Transactions (% of Total Transactions) Personal Internet Banking Transactions (In Lakhs) 97% 97% 97% 97% 97% 97% 2.9 97% 97% 97% 96% 97% 97% 97% 2.6 97% 97% 96% 96% 2.4 96% 96% 96% 2.3 2.3 96% 96% 96% 96% 96% 96% 96% 96% 96% 96% 96% 96% 96% 95% 95% 95% 9
Slide 18: Board & Management
Board & Management
Slide 19: 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 20: 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 21: Business Update
Business Update
Slide 22: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 30-Sep-24) 0.6% 5.9% 8.0% 44,465 3.5% 5.2% 2.6% 6.9% 0.3% 1.9% 42,181 4.0% 40,925 3.8% 24.6% 38,951 3.2% 37,276 45.3% 8.8% Agri & Inclusive Banking (AIB) Mortgages Mortgages Tractors Corporate banking Gold Loan Kissan Credit Card MFI+BC Com
Slide 23: Agri & Inclusive Banking (AIB) – A Bank Within a Bank
Agri & Inclusive Banking (AIB) – A Bank Within a Bank Product Mix Headcount Branches 207 2,458 2,527 2,290 203 1% 200 10% Mar-24 Jun-24 Sep-24 Mar-24 Jun-24 Sep-24 8% 36% Region wise Branches State wise Branches 1% 16% 15% 26% 20% 5% 13% 5% 16% 39% 5% 6% 15% 11% 12% Mortgages Tractors Kissan Credit
Slide 24: Disbursements
Disbursements Product wise Disbursement Trends (INR crores) 5,207 374 4,729 4,557 4,307 429 321 281 4,138 366 259 608 272 341 1,695 603 1,126 1,140 1,142 1,097 892 696 634 744 475 426 500 586 327 448 1,466 1,494 1,513 1,440 1,243 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Mortgages SME + MSME Corporate bank
Slide 25: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (%) 54,532 49,353 11.2% 13.4% 13.5% 13.3% 17.0% 14.5% 10.4% 8.8% 7.8% 7.6% 7.4% 41,239 11.0% 34,692 70.6% 70.0% 30,370 40,569 77.0% 29,704 80.6% 81.2% 84.2% 36,511 30,343 25,411 78.4% 77.8% 78.7% 79.1% 78.1% 23,851 22,917 72.0% 12,
Slide 26: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 2.3% 2.0% 2.3% 1.2% 3.4% Instruments CRISIL CARE 7.9% 8.2% 8.9% 8.2% 7.7% Long Term – Subordinated Debt AA-/Stable -- 67.3% 66.3% 65.7% 67.6% 66.1% Certificates of Deposits A1+ A1+ 22.5% 23.5% 23.1% 23.0% 22.8% Short – Term Fixed Deposits A1+ A1+ Se
Slide 27: Asset Quality
Asset Quality 4.00% 75.49% 3.43% 76.42% 77.30% 76.00% 75.62% 3.36% 3.33% 3.29% 3.50% 3.23% 3.00% 2.50% 2.00% 1.28% 1.22% 1.18% 1.17% 1.50% 1.11% 1.00% 0.50% 0.00% Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA Sep-23 Dec-23 Mar-24 Jun-
Slide 28: Restructured Advances
Restructured Advances Mar-2024 Jun-2024 Sep-24 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 1,239 166 1,073 1,140 153 987 1,062 143 919 NPA 427 237 190 437 244 193 428 245 183 Total 1,666 403 1,263 1,577 39
Slide 29: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Sep-23 Dec-23 Mar-24 Jun-24 Jul-24 Aug-24 Sep-24 Business Loans (LAP) 98.6% 98.8% 98.9% 98.9% 98.7% 98.5% 98.5% Home Loans 98.7% 98.9% 99.1% 98.9% 98.8% 98.9% 98.8% CV Loans 94.0% 95.7% 97.0% 96.5% 95.7% 95.9% 93.7% Collection Effi
Slide 30: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 1.18% 2.20% 2.31% 3.33% 1.17% 3.67% 3.71% 3.29% 1.94% 3.23% 3.35% 1.11% Mar-24 Jun-24 Sep-24 Mar-24 Jun-24 Sep-24 Mar-24 Jun-24 Sep-24 Mar-24 Jun-24 Sep-24 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 31: Provisions – Balance Sheet
Provisions – Balance Sheet Provisions – Balance Sheet (INR crores) Mar-2024 Jun-2024 Sep-2024 Performing Advances (A) 40,493 41,703 43,965 Provisions excluding NPA Provision (B) 470 467 471 Provision as a percentage of Performing Advances (B/A) 1.16% 1.12% 1.07% 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 11.56% 11.44% 11.71% 11.50% 7.19% 11.39% 7.14% 7.17% 7.08% 7.10% 7.09% 7.02% 6.95% 3.69% 6.85% 6.77% 3.62% 3.48% 3.39% 3.27% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY2
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 16.55% 16.59% 15.95% 34,225 15.72% 15.55% 2.06% 32,834 2.27% 2.03% 1.95% 1.90% 31,366 30,108 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Risk Weighted Assets / Total Assets (%) 14.28% 14.53% 14.00% 13.69% 13.65% 53.05%
Slide 35: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 139 205 118 114 97 98 143 136 124 107 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 34
Slide 36: Financial Highlights
| Financial Highlights
Slide 37: Profit & Loss Statement – Q2FY25
Profit & Loss Statement – Q2FY25 (INR crores) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q FY24 Interest Income 1,568 1,306 1,489 5,362 Interest Expense 1,059 830 992 3,434 Net Interest Income 509 476 +7% 497 +3% 1,928 Other Income 205 107 +91% 143 +43% 474 - Commission, Exchange and Brokerage 139 97 114 388 -
Slide 38: Profit & Loss Statement – Q-o-Q
Profit & Loss Statement – Q-o-Q (INR crores) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Interest Income 1,306 1,374 1,445 1,489 1,568 Interest Expense 830 900 937 992 1,059 Net Interest Income 476 474 508 497 509 Other Income 107 124 136 143 205 - Commission, Exchange and Brokerage 97 98 118 114 139 - Profi
Slide 39: Balance Sheet – Q-o-Q
Balance Sheet – Q-o-Q (INR crores) Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Capital & Liabilities Shareholders Equity 4,784 4,912 5,071 5,185 5,351 Deposits 45,496 47,120 49,353 51,690 54,532 Borrowings 5,190 5,372 6,219 5,343 6,820 Other Liabilities and Provisions 2,240 2,400 2,394 2,298 2,252 Total 57,7
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 Sep 30, 2024 Key Non-Promoter Institutional Shareholders % 4.93% HDFC Mutual Fund* 5.29 14.73% Tata Mutual Fund* 5.17 39.56% Franklin Templeton Asset Management (India) Pvt Ltd* 4.56 ICICI Venture Funds Management Company Limited 3.98 (India Advantage Fund S4
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) UPI Delegate Payment Vendor Payout Automation - ezPayout (AFX) The UPI Delegate payment introduces a new capability that enables a primary Vendor Payout automation of payout calculations of the vendor for Tractor/ user to grant permission to a secondary user to conduct UPI
Slide 45: Digital Initiatives (2/4)
Digital Initiatives (2/4) Vendor Communication System (VCS) OTC and PDD Tracker in Finflex Digital platform to communicate with the vendor for services like Migrating to system capture, tracking and report generation of OTC (Over the counter) field investigation, legal opinion and valuation. and PDD
Slide 46: Digital Initiatives (3/4)
Digital Initiatives (3/4) FATCA update automation via Personal Internet Banking Insurance Needs Analysis FATCA declaration request processing on real time & can be seen in finacle The development helps in analysing the future needs of the customer for which they are instantly. looking to enter into
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 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, Implementin
Slide 49: Building Sustainable Livelihoods among Tribal Communities
Building Sustainable Livelihoods among Tribal Communities… …In Madhya Pradesh & Gujarat through Beekeeping with Indigenous Bees 68 farmers sensitized about bees and beekeeping. Beekeepers earned an income of Rs. 10,000 from the sale of 20 kg of honey. 60 interested farmers were selected for a
Slide 50: Water Conservation
Water Conservation… ...Jal Sanrakshan III, Medak, Telangana Surface water availability and groundwater recharge through water Capacity building through Village Development Committee (VDC): harvesting structure: Two meetings have been organized with the WMC members to As part of the initiatio
Slide 51: 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 52: 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 53: 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 54: Awards & Accolades (4/4)
Awards & Accolades (4/4) Most Preferred Workplace BFSI 2023-24 Won Gold in ACEF Asian Business Leaders Awards 2024 in (2nd Edition) Partnership for Sustainable Development • This achievement reflects the positive and collaborative environment we've • The award recognise organization for their exempl
Slide 55: 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 54 54