Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q4 FY2024 Earnings Presentation
53 slides from Dcb Bank's earnings presentation, Apr 24, 2024
Slide 1: Exchange cover letter for investor presentation Q4FY24
Ref. No.CO:CS:RC:2024-25:030 April 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 Presentation-
Slide 2: DCB Bank Limited Investor Presentation – Q4FY24
DCB Bank Limited Investor Presentation – Q4FY24
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: Q4FY24 Highlights
Q4FY24 Highlights Steady improvement in core fee income: INR 118 crores Q4FY24 Credit cost: 0.16% Steady investments in front line + branch infrastructure: 442 Branches, two branch added in Q4FY24 Strong capital adequacy ratio: 16.59% Advances growth: +19.04% Y-o-Y Continued granular loan book Depos
Slide 5: Performance Highlights – Q4FY24
Performance Highlights – Q4FY24 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 156 crores 3.23% 1.11% ( +9.47% Y-o-Y ) (Q4FY23: 3.19%) (Q4FY23: 1.04%) Profit After Tax Gross NPA Net NPA 26.02% 16.59
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 442 • 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 • 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-Mar-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 9,905 10,539 11,325 416 418 442 440 396 427 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Region wise Branches (%) State wise Branches (%) 18% 19% 16% 29% 4% 12% 5% 25% 5% 8% 5% 5% 8% 28% 6% 7% 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 • Blockchain – adopted ‘Blockchain’ for use cases such as Interest certificate & Positive Pay feature enabled 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% 95% 96% 96% 96% 2.5 2.4 2.3 2.3 2.3 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 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 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 20: Business Update
Business Update
Slide 21: Update on Advances
Update on Advances Advances (INR crores) Product Mix (As on 31-Mar-24) 0.4% 5.9% 40,925 7.5% 3.1% 5.3% 2.5% 7.6% 0.4% 1.8% 38,951 4.9% 37,276 3.8% 25.3% 35,474 3.2% 34,378 44.9% 8.7% 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 2,290 1,996 2,038 200 199 194 11% 1% Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 7% 34% Region wise Branches State wise Branches 2% 19% 13% 18% 26% 5% 13% 5% 15% 40% 6% 7% 15% 11% 12% Mortgages Tractors Kissan Credit
Slide 23: Disbursements
Disbursements Product wise Disbursement Trends (INR crores) 5,207 5,073 374 290 4,557 376 4,307 429 4,237 281 232 366 259 423 341 1,364 1,695 1,126 954 1,142 540 892 696 791 744 838 426 500 384 327 1,665 1,494 1,513 1,453 1,466 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Mortgages SME + MSME Corporate bankin
Slide 24: Deposit Profile
Deposit Profile Deposits (INR crores) CASA Mix (%) Term Deposits Mix (%) 49,353 11.2% 13.4% 13.5% 13.3% 20.1% 17.0% 10.4% 8.8% 7.8% 7.6% 41,239 8.2% 11.0% 34,692 73.1% 70.6% 70.0% 30,370 77.0% 80.6% 81.2% 29,704 28,435 36,511 30,343 25,411 78.4% 77.8% 78.7% 79.1% 71.7% 72.0% 21,625 23,851 22,917 26.
Slide 25: Funding Mix
Funding Mix Funding Mix (INR crores) Credit Rating 1.0% 1.4% 2.3% 2.0% 2.3% Instruments CRISIL 8.1% 8.5% 7.9% 8.2% 8.9% Long Term – Subordinated Debt AA-/Stable 66.9% 66.7% 67.3% 66.3% 65.7% Certificates of Deposits A1+ 24.0% 23.4% 22.5% 23.5% 23.1% Short – Term Fixed Deposits A1+ Mar-23 Jun-23 Sep-
Slide 26: Asset Quality
Asset Quality 4.00% 79.34% 77.07% 75.49% 3.43% 76.42% 77.30% 3.26% 3.36% 3.50% 3.19% 3.23% 3.00% 2.50% 2.00% 1.28% 1.22% 1.50% 1.04% 1.19% 1.11% 1.00% 0.50% 0.00% Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 GNPA NNPA Provision Coverage Ratio Gross NPA Movement Product wise Gross NPA Mar-23 Jun-23 Sep-23 Dec-
Slide 27: Restructured Advances
Restructured Advances Mar-2023 Dec-2023 Mar-2024 (INR crores) Restructured Provision Net outstanding Restructured Provision Net outstanding Restructured Provision Net outstanding Standard 1,779 229 1,550 1,337 178 1,159 1,239 166 1,073 NPA 309 166 143 426 239 187 427 237 190 Total 2,088 395 1,693 1,
Slide 28: Collection Efficiency
Collection Efficiency Collection Efficiency (%) – Bucket 0 Portfolio Mar-23 Jun-23 Sep-23 Dec-23 Jan-24 Feb-24 Mar-24 Business Loans (LAP) 98.8% 98.4% 98.6% 98.8% 98.8% 99.1% 98.9% Home Loans 98.7% 98.6% 98.7% 98.9% 99.0% 99.1% 99.1% CV Loans 96.0% 93.0% 94.0% 95.7% 95.6% 95.1% 97.0% Collection Effi
Slide 29: Key Credit Metrics
Key Credit Metrics Slippages Gross NPA (%) Net NPA (%) Slippages (%) (excl. Gold Loan) (%) 1.28% 2.69% 3.43% 4.63% 2.55% 3.36% 1.22% 4.48% 1.94% 3.23% 3.35% 1.11% Sep-23 Dec-23 Mar-24 Sep-23 Dec-23 Mar-24 Sep-23 Dec-23 Mar-24 Sep-23 Dec-23 Mar-24 PCR PCR PCR Standard restructured (Incl. Technical wr
Slide 30: Provisions – Balance Sheet
Provisions – Balance Sheet Provisions – Balance Sheet (INR crores) Sep-2023 Dec-2023 Mar-2024 Performing Advances (A) 36,827 38,499 40,493 Provisions excluding NPA Provision (B) 515 467 470 Provision as a percentage of Performing Advances (B/A) 1.40% 1.21% 1.16% 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% 11.71% 11.44% 7.14% 7.02% 6.95% 7.08% 4.18% 6.85% 6.61% 6.77% 6.70% 3.83% 6.33% 3.69% 3.62% 6.41% 3.48% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY2
Slide 32: Key Ratios (Y-o-Y)
Key Ratios (Y-o-Y) Yield on Advances (%) Cost of Funds Cost of Deposits Net Interest Margins 11.57% 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 33: Capital Adequacy Ratio
Capital Adequacy Ratio Capital Adequacy Ratio (%) Risk Weighted Assets (INR crores) 32,834 17.55% 17.09% 31,366 16.55% 16.59% 30,108 2.37% 15.72% 2.31% 29,088 2.27% 2.06% 28,221 2.03% Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Risk Weighted Assets / Total Assets (%) 15.18% 14.78% 14.28% 14.53% 13.69% 53.89%
Slide 34: Consistent Growth in Fee Income
Consistent Growth in Fee Income Non-Interest Income (INR crores) Core Fee Income (INR crores) 136 118 122 124 97 98 107 107 91 75 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 33
Slide 35: Financial Highlights
| Financial Highlights
Slide 36: Profit & Loss Statement – Q4FY24
Profit & Loss Statement – Q4FY24 (INR crores) Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Interest Income 1,445 1,179 1,374 5,362 4,200 Interest Expense 937 693 900 3,434 2,483 Net Interest Income 508 486 +4% 474 +7% 1,928 1,717 +12% Other Income 136 122 +11% 124 +10% 474 409 +16% - Commission,
Slide 37: Profit & Loss Statement – Q-o-Q
Profit & Loss Statement – Q-o-Q (INR crores) Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Interest Income 1,179 1,238 1,306 1,374 1,445 Interest Expense 693 767 830 900 937 Net Interest Income 486 471 476 474 508 Other Income 122 107 107 124 136 - Commission, Exchange and Brokerage 91 75 97 98 118 - Profit/(L
Slide 38: Balance Sheet – Q-o-Q
Balance Sheet – Q-o-Q (INR crores) Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Capital & Liabilities Shareholders Equity 4,566 4,656 4,784 4,912 5,071 Deposits 41,239 43,009 45,496 47,120 49,353 Borrowings 4,118 4,730 5,190 5,372 6,219 Other Liabilities and Provisions 2,443 2,579 2,240 2,400 2,394 Total 52,3
Slide 39: 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 40: 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 41: Shareholding Pattern
Shareholding Pattern Shareholding as on March 31, 2024 Key Non-Promoter Shareholders % 5.29% Tata Mutual Fund* 5.18 14.77% HDFC Small Cap Fund 4.46 34.44% Franklin Templeton Asset Management (India) Pvt Ltd* 4.43 ICICI Venture Funds Management Company Limited 3.99 (India Advantage Fund S4 I) DSP Sma
Slide 42: 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 43: Digital Initiatives (1/3)
Digital Initiatives (1/3) 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 validations to reduce the TAT of
Slide 44: Digital Initiatives (2/3)
Digital Initiatives (2/3) UPI LITE e-BRC generation UPI LITE is a simplified version of the popular Unified Payments Interface • Earlier, DGFT system was providing generation of e-BRC (electronic Bank (UPI) system in India, aimed at making small value transactions quick and Realisation Certificate)
Slide 45: Digital Initiatives (3/3)
Digital Initiatives (3/3) 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 46: CSR Initiatives (1/3)
CSR Initiatives (1/3) Trees for Elephants, East Open Traditional Well Forest Patrolling in Singhbum dist., Jharkhand. at Lalbagh Botanical Gumalwada, Plantation of 25,000 multi Garden, Bengaluru, Chhattisgarh species trees Karnataka Solid Waste Employee volunteers Sustainable Management for and citi
Slide 47: 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 48: CSR Initiatives (3/3)
CSR Initiatives (3/3) Setting up of Solid Waste Management at Goa University Qualitative impacts: • Waste segregation at source without polluting the river bodies or dumping into landfills • Compost obtained after decomposition is a rich source of nutrient, also known as “Black Gold” for soil enrich
Slide 49: Awards & Accolades (1/4)
Awards & Accolades (1/4) 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 50: 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 51: 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 52: Awards & Accolades (4/4)
Awards & Accolades (4/4) 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 53: 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 52 52