Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q4 FY2023 Earnings Presentation
48 slides from Dcb Bank's earnings presentation, May 5, 2023
Slide 1: Exchange filing cover letter: Investor Presentation Q4FY23
Ref. No.CO:CS:RC:2023-24:038 May 5, 2023 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 Presentation-Q4
Slide 2: DCB Bank Limited Investor Presentation – Q4FY23
DCB Bank Limited Investor Presentation – Q4FY23
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: FY2023 Performance Highlights & Key Takeaways
FY2023 Performance Highlights & Key Takeaways Improving core fees income: INR 303 crores FY2023 Credit cost: 0.33% Continued investments in front line + branch infrastructure: 427 Branches, 27 branches added in FY2023 Strong capital adequacy ratio: Strong growth in Advances: +18.16% Y-o-Y 17.55% and
Slide 5: Key Performance Highlights – Q4FY2023
Key Performance Highlights – Q4FY2023 INR 52,366 crores INR 34,381 crores INR 41,239 crores ( +16.91% Y-o-Y ) ( +18.16% Y-o-Y ) ( +18.87% Y-o-Y ) Balance Sheet Size Advances Deposits INR 142 crores 3.19% 1.04% ( +25.36% Y-o-Y ) (Q4FY2022: 4.32%) (Q4FY2022: 1.97%) Profit After Tax Gross NPA Net NPA 2
Slide 6: Key Performance Highlights – FY2023
Key Performance Highlights – FY2023 INR 52,366 crores INR 34,381 crores INR 41,239 crores ( +16.91% Y-o-Y ) ( +18.16% 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 ) (FY2022: 4.32%) (FY2022: 1.97%) Profit After Tax Gross NPA Net NPA 26.42%
Slide 7: About Us
About Us
Slide 8: About Us
About Us • New generation private sector bank 427 • 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: 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-Mar-23: Diversified portfolio with focus on Gross NPA at 3.19% and Net NPA Cost to Average Assets at 2.83% for
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 396 385 427 9,649 9,905 418 8,077 349 400 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Region wise Branches (%) State wise Branches (%) 19% 20% 16% 27% 4% 12% 4% 4% 25% 8% 5% 5% 8% 29% 6% 8% Metro Urban Semi Urban Rural
Slide 15: 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 16: Leading to Enhanced Digital Footprint
Leading to Enhanced Digital Footprint Digital Transactions (% of Total Transactions) Personal Internet Banking Transactions (In Lakhs) 2.6 94% 94% 92% 89% 91% 2.5 2.5 2.5 2.4 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 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 of the Institute of Chartered Accountants with more than 25 A Member of The Institute of Chartered Accountants of India and The years of experien
Slide 19: 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 20: Business Update
Business Update
Slide 21: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 31-Mar-23) 1.4% 34,381 8.4% 7.2% 3.8% 4.2% 2.7% 0.6% 32,966 7.9% 1.8% 4.0% 31,291 23.3% 3.6% 3.4% 29,814 29,096 43.8% 7.2% 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 194 2,232 189 1,996 1,754 179 10% 3% Mar-22 Dec-22 Mar-23 31% Mar-22 Dec-22 Mar-23 8% Region wise Branches State wise Branches 2% 17% 14% 26% 19% 5% 15% 5% 16% 40% 5% 7% 15% 11% 11% Mortgages Tractors 40% Kissan Cre
Slide 23: Disbursements
Disbursements Product wise Disbursement Trends (INR crores) 5,074 4,622 4,598 290 249 376 276 349 301 3,527 3,616 1,365 222 999 1,036 244 309 388 566 679 622 540 782 614 838 503 976 968 574 715 1,665 1,370 1,395 1,115 1,111 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Mortgages SME + MSME Corporate banking AI
Slide 24: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (%) 41,239 34,692 11.2% 13.4% 13.5% 20.1% 17.0% 28.0% 30,370 29,704 10.4% 8.8% 7.8% 28,435 11.0% 8.2% 68.6% 70.6% 70.0% 8.2% 24,007 30,343 73.1% 77.0% 80.6% 25,411 21,625 23,851 22,917 18,167 78.4% 77.8% 78.7% 71.7% 72.0% 63.8% 10,
Slide 25: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 1.5% 2.1% 1.4% 0.6% 1.0% Instruments CRISIL 9.0% 8.2% 7.3% 8.2% 8.1% Long Term – Subordinated Debt AA-/Stable 65.5% 64.1% 64.5% 66.0% 66.9% Certificates of Deposits A1+ 24.0% 25.6% 26.8% 25.2% 24.0% Short – Term Fixed Deposits A1+ Mar-22 Jun-22 Sep-
Slide 26: Asset Quality
Asset Quality 5.00% 4.32% 67.84% 69.48% 72.83% 74.68% 79.34% 4.21% 4.50% 3.89% 3.62% 4.00% 3.19% 3.50% 3.00% 2.50% 1.97% 1.82% 2.00% 1.54% 1.37% 1.50% 1.04% 1.00% 0.50% 0.00% Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA Mar-22 Jun-22
Slide 27: Restructured Advances
Restructured Advances Mar-2022 Dec-2022 Mar-2023 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 2,156 287 1,869 1,876 248 1,628 1,779 229 1,550 NPA 273 137 136 321 165 156 309 166 143 Total 2,429 424 2,005 2,
Slide 28: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Mar-22 Jun-22 Sep-22 Dec-22 Jan-23 Feb-23 Mar-23 Business Loans (LAP) 97.7% 98.3% 98.2% 98.6% 97.9% 98.0% 98.8% Home Loans 99.0% 99.1% 98.8% 98.9% 98.1% 98.2% 98.7% CV Loans 85.1% 93.8% 93.6% 94.8% 93.6% 92.8% 96.0% Collection Effi
Slide 29: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 4.32% 5.64% 1.97% 5.20% 3.10% 3.62% 2.88% 3.19% 1.37% 1.04% 3.28% 2.03% Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 30: Provisions – Balance Sheet
Provisions – Balance Sheet (INR crores) Mar-2022 Dec-2022 Mar-2023 Provision for Gross NPA 595 637 629 Floating Provision 122 133 137 Sub-total (A) 717 770 766 Specific Standard Asset Provision 29 18 20 Contingency provision on Restructured and Stressed Accounts 70 57 52 Restructured Standard Assets
Slide 31: 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% 3.93% 6.62% 6.49% 10.71% 6.05% 6.03% 3.59% 3.56% 6.16% 6.11% 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 32: Key Ratios (Q-o-Q)
Key Ratios (Q-o-Q) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.67% 6.41% 6.33% 4.18% 4.02% 3.93% 3.88% 11.00% 10.99% 10.81% 6.04% 6.05% 5.95% 5.98% 10.65% 6.00% 5.97% 5.90% 5.87% 3.61% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY2
Slide 33: Capital Adequacy Ratio
Capital Adequacy Ratio Capital Adequacy Ratio (%) Risk Weighted Assets (INR crores) 18.92% 28,221 18.47% 17.91% 26,860 17.55% 3.08% 16.26% 25,780 3.03% 2.97% 2.37% 24,938 1.79% 24,313 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Risk Weighted Assets / Total Assets (%) 15.84% 15.44% 14.94% 15.18% 14.47% 55.15%
Slide 34: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 91 122 115 77 99 70 95 66 92 65 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 33
Slide 35: Financial Highlights
| Financial Highlights
Slide 36: Profit & Loss Statement – Q4FY2023
Profit & Loss Statement – Q4FY2023 (INR crores) Q4FY2023 Q4FY2022 Y-o-Y Q3FY2023 Q-o-Q Interest Income 1,179 920 1,072 Interest Expense 693 540 626 Net Interest Income 486 380 +28% 446 +9% Other Income 122 115 +7% 95 +28% - Commission, Exchange and Brokerage 91 66 70 - Profit/(Loss) on sale of Inves
Slide 37: Profit & Loss Statement – Q-o-Q
Profit & Loss Statement – Q-o-Q (INR crores) Q4FY2022 Q1FY2023 Q2FY2023 Q3FY2023 Q4FY2023 Interest Income 920 949 1,000 1,072 1,179 Interest Expense 540 575 589 626 693 Net Interest Income 380 374 411 446 486 Other Income 115 92 99 95 122 - Commission, Exchange and Brokerage 66 65 77 70 91 - Profit/
Slide 38: Balance Sheet – Q-o-Q
Balance Sheet – Q-o-Q (INR crores) Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Capital & Liabilities Shareholders Equity 4,049 4,116 4,230 4,422 4,566 Deposits 34,692 35,081 36,960 39,506 41,239 Borrowings 4,082 3,999 3,515 3,825 4,118 Other Liabilities and Provisions 1,970 2,025 2,077 2,113 2,443 Total 44,7
Slide 39: Profit & Loss Statement – Trend
Profit & Loss Statement – Trend (INR crores) FY2019 FY2020 FY2021 FY2022 FY2023 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, Excha
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 Key Non Promoter Shareholders % Shareholding as on March 31, 2023 Tata Mutual Fund - Tata Small Cap Fund* 4.95 5.67% HDFC Small Cap Fund 4.48 14.83% 24.27% DSP Small Cap Fund 4.22 India Advantage Fund S4 I 4.00 Franklin India Smaller Companies Fund 3.35 ICICI Prudential Mutual F
Slide 42: ESG Initiatives
ESG Initiatives Environment Social Governance • Total number of employees volunteered: • Sustainable livelihood created & lives • The Board of Directors comprise executive 1,205 impacted (Cuttack district, Odisha): and non-executive directors 2,74,168 individuals • Total number of trees planted till
Slide 43: Digital Initiatives
Digital Initiatives Digital Initiative – Deliverables Management System (DMS) • The implementation of Phase III of the Deliverables Management System for a centralised Print and Deliverables Unit is done. Bulk PDF letter generation has been developed for the "My Documents" web portal and an API has
Slide 44: CSR Initiatives
CSR Initiatives Waterless, Hygienic Public Water conservation for Restrooms sustainable future Tree plantation for Grass plantation for cattle by Waste management greening the urban feeding healthy fresh green through bio- space fodder digesters, using the cattle waste to provide biogas to rural hom
Slide 45: CSR Initiatives
CSR Initiatives Sustainable Livelihood from Beekeeping & Biodiversity Enhancement • 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 46: Sustainable Impact
Sustainable Impact Tree plantation to increase Rain water harvested for c & rural green cover urban sustainable livelihood 1,01,120 trees 99,84,00,000 liters Oxygen produced by trees Revival of village water 11,992 metric tonnes bodies and ponds Reduction of carbon from 2,17,800 sq. ft. atmosphere 2
Slide 47: Awards & Accolades
Awards & Accolades India’s Best Bank for CSR 2022 by Asiamoney and Euromoney 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 Improvemen
Slide 48: 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 47 47