Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q4 FY2016 Earnings Presentation
67 slides from Dcb Bank's earnings presentation, April 2016
Slide 1: Investor Presentation – Q4 FY 2016
Investor Presentation – Q4 FY 2016 April 2016 DCB Bank Limited
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed, redistributed, disseminated or transmitted, directly or indirectly, in any manner. The information in this presentation is being provided by DCB Bank Limited (the “Bank”). This presentation has been
Slide 3: Branch Network March 31, 2016
Branch Network March 31, 2016 State Branches At a Glance ANDHRA PRADESH 6 Branches 198 BIHAR 1 ATMs 410 CHATTISGARH 9 ***Network 35,000+ GOA 4 No. of ** GUJARAT 25 Category Branches % HARYANA 6 Metro 63 32 KARNATAKA 9 Urban 33 17 KERALA 1 Semi 54 27 MADHYA PRADESH 16 Urban MAHARASHTRA 43 Rural 48 24
Slide 4: Key Indicators - I
Key Indicators - I No. of Cost to Return on Return on INR mn Branches Balance Sheet Income Ratio Asset Equity Q4 FY 2016 198 191,185 57.85% 1.53% 15.91% FY 2016 198 191,185 58.45% 1.14% 11.59% FY 2015 154 161,323 58.83% 1.37% 14.16% FY 2014 130 129,231 62.93% 1.31% 14.04% FY 2013 94 112,788 68.58% 1
Slide 5: Key Indicators - II
Key Indicators - II INR mn Q4 FY 16 Q3 FY 16 Q4 FY 15 Y-o-Y Deposits 149,260 140,835 126,091 18% Of which CASA 34,899 32,175 29,501 18% - Of which Retail Term 86,834 83,480 75,898 14% - Of which NRI Term 11,832 11,499 9,636 23% Net Advances 129,214 117,362 104,651 23% Advances (Excluding 109,497 97,
Slide 6: Balance Sheet
Balance Sheet Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, INR mn 2011 2012 2013 2014 2015 2016 Shareholder’s Equity 6,215 8,614 10,031 11,540 15,886 17,922 Deposits 56,102 63,356 83,638 103,251 126,091 149,260 Borrowings1 8,607 11,235 15,256 8,601 11,638 11,479 Other Liabilities & Provisions1 3,
Slide 7: Profit & Loss
Profit & Loss INR mn Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Net Interest Income 1,297 1,404 1,500 1,605 1,687 Other Income 463 631 487 472 614 - Commission, exchange and brokerage 336 299 351 361 395 Operating Income 1,760 2,035 1,987 2,077 2,301 Operating Expenses (1,080) (1,138) (1,206) (1,234) (
Slide 8: Profit & Loss
Profit & Loss INR mn FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Net Interest Income 1,891 2,277 2,844 3,684 5,082 6,195 Other Income 1,121 1,004 1,170 1,387 1,657 2,205 - Commission, exchange and brokerage 683 786 893 999 1,193 1,405 Operating Income 3,012 3,281 4,014 5,071 6,739 8,400 Operatin
Slide 9: Deposits Mix
Deposits Mix Deposits as on Mar 31, 2016 Residential Term CASA Deposit 55% 23% Interbank Term Deposit 14% Non-Resident Term Deposit 8% Retail Deposits to Total Deposits - 80.73% * CASA includes NRI CASA. 9 DCB Bank Limited
Slide 10: Advances Mix
Advances Mix Net Advances as on Mar 31, 2016 Construction Gold Loans, 2% Commercial Finance, 2% Vehicle, 4% Others, 5% Mortgages, 43% SME + MSME, 12% Corporate Banking, 15% AIB, 17% 10 DCB Bank Limited
Slide 11: NIM, Yield and Cost of Funds
NIM, Yield and Cost of Funds Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Year Ended 2011 2012 2013 2014 2015 2016 Net Interest 3.13% 3.25% 3.34% 3.56% 3.72% 3.94% Margin Yield on 11.12% 12.60% 12.75% 12.84% 12.63% 12.52% Advances Cost of Funds 5.83% 7.11% 7.78% 7.78% 7.78% 7.54% Base Rate as on
Slide 12: Non Performing Assets
Non Performing Assets Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2011 2012 2013 2014 2015 2015 2015 2015 2016 Gross NPA 5.85% 4.40% 3.18% 1.69% 1.76% 1.96% 1.99% 1.98% 1.51% Net NPA 0.96% 0.57% 0.75% 0.91% 1.01% 1.22% 1.16% 1.12% 0.75% Provision 87.64% 91.17% 85.71% 80.5
Slide 13: Gross NPA Movement
Gross NPA Movement INR mn Q4 2014-15 FY 2014-15 Q4 2015-16 FY 2015-16 Opening Balance 1,792 1,385 2,349 1,861 (+) Add Fresh Slippages 846 1,706 502 2,244 Addition to Existing 12 33 7 11 NPAs (-) Less Recoveries 272 534 426 1,005 Upgrades 74 258 110 539 Write Offs / Sacrifice 443 471 348 598 Closing
Slide 14: Treasury
Treasury Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, INR mn 2011 2012 2013 2014 2015 2016 SLR 17,512 20,219 24,332 28,072 34,750 39,855 Non-SLR 1,007 774 5,552 4,236 4,872 3,478 Total 18,519 20,993 29,884 32,308 39,622 43,333 Investments* HTM 14,415 16,660 19,903 22,603 27,567 30,580 AFS 3,029 3
Slide 15: Capital Adequacy Ratios – Basel III
Capital Adequacy Ratios – Basel III Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2011 2012 2013 2014 2015 2015 2015 2015 2016 CRAR 13.25% 15.41% 13.61% 13.71% 14.95% 14.27% 13.63% 13.04% 14.11% 11.10% 13.81% 12.62% 12.86% 14.21% 13.56% 12.93% 12.33% 12.79% -- Tier I -- Tie
Slide 16: Ratings
Ratings Dec 31, Mar 31, Sep 30, Dec 31, Mar 31, 2012 2013 2013 2014 2016 ICRA Long Term – A+(hyb) / - - - - Subordinated Debt (stable) Short – Term Fixed - - - A1+ A1+ Deposits CRISIL Certificate of Deposits A1 A1+ A1+ A1+ A1+ Short – Term Fixed - - A1+ A1+ A1+ Deposits Short-Term Fixed Deposits Pro
Slide 17: Overview
Overview 17 DCB Bank Limited
Slide 18: Who is our Customer? Opportunity
Self Employed / Small Business (For example: Trader, Commodity, Gold Trader, Vegetable Trader, Commission Agent, Retailer, Restaurant Owner, Caterer, Baker, Vending Machine Supplier , Consultant, Doctor, Contractor, Interior Decorator, Software Designer, Salon, Beauty Parlor, Printer, Electrical Eng
Slide 19: DCB Bank – Neighborhood Banking for Small Businesses
DCB Bank – Neighborhood Banking for Small Businesses 19 DCB Bank Limited
Slide 20: Educational Content Creator
EDUCATIONAL CONTENT CREATOR 20 DCB Bank Limited
Slide 21: Tyre Dealer
TYRE DEALER 21 DCB Bank Limited
Slide 22: Poultry Farmer
POULTRY FARMER 22 DCB Bank Limited
Slide 23: Scrap Dealer & Recycling
SCRAP DEALER & RECYCLING 23 DCB Bank Limited
Slide 24: Farming
a Oce Bank FARMING 7 N ar cee ¢ wher WV ——— LT ~ RN age cat Im ys DCB Bank Limited
Slide 25: Camera Sales Outlet & Service Centre
CAMERA SALES OUTLET & SERVICE CENTRE 25 DCB Bank Limited
Slide 26: Educational Institution
EDUCATIONAL INSTITUTION 26 DCB Bank Limited
Slide 27: Engineering Workshop
ENGINEERING WORKSHOP 27 DCB Bank Limited
Slide 28: Business Strategy
Business Strategy 1 Concentrate on Tier 2 to 2 Relentless focus on 3 Rely mainly on Retail Deposits (Term, CASA). Tier 6 locations. Liquidity, Costs, Grow NRI deposits. Limit Operational Risks, dependency on bulk. People and Customer Service. Improve continuously. 4 Form strategic alliances 5 Contin
Slide 29: Products and Services
Products and Services Retail Banking SME, Corporate Banking, NBFCs, Co-operative Banks Deposit Products: Loans: Corporate Salary Auto Loans Bills Collection Cash Management** Current and Savings Commercial Vehicle Current Account Internet Banking Lockers Construction Equipment* Foreign Exchange RTGS
Slide 30: Capital Raising and Milestones
Capital Raising and Milestones Tier I Capital Raising Milestones 2015 Opened 150th Branch 2014 QIP of INR 2.5 bn 2013 Name changed to DCB Bank Ltd. QIP of INR 940 mn and Preferential 2012 Allotment of INR 1,390 mn 2013 Opened 100th Branch Branches 2009 QIP of INR 810 mn Classified as a “New Generati
Slide 31: Investor Profile
Investor Profile Shareholding Pattern March 31, 2016 Key Non Promoter Shareholders % Tano Mauritius India FVCI II 4.62 *AKFED and PJI Sundaram Mutual Fund * 4.02 16.24% * ***Institutions Axis Mutual Fund 3.62 36.92% Others (Non- PI Opportunities Fund – 1 2.78 Institutions)** 6.41% Tata Mutual Fund *
Slide 32: Board of Directors
Board of Directors Amin Manekia Pioneered in concept of automatic beverage vending machines in India. More than 20 years in various capacities in different institutions of AKDN for the social-economic uplift of the poor. Altaf Jiwani With expertise in Foreign Exchange, Risk Management and Trade Fina
Slide 33: Management Team
Management Team Ajay Mathur – 22 yrs work exp. Head – Collections & Commercial Vehicles Abhijit Bose - *24 yrs work exp. Aditya Prasad – 30 yrs work exp. CGSL & Citibank Head – Retail Assets & Strategic Alliances Head – Corporate Banking Axis Bank,, State Bank of India Standard Chartered Bank, Citib
Slide 34: Awards & Recognitions
Awards & Recognitions 34 DCB Bank Limited
Slide 35: Excellence In Transformation Award for Project Neo
“Excellence In Transformation” Award for Project Neo (state-of-the-art instalment loans system) 35 DCB Bank Limited
Slide 36: Digital Business Leader Award to R Venkattesh
Digital Business Leader Award to R Venkattesh (Head – Operations, Technology & HR) 36 DCB Bank Limited
Slide 37: Innovative product award for DCB Zippi
Innovative product award for “DCB Zippi” by Banking Frontiers 37 DCB Bank Limited
Slide 38: Award for Virtualization of Servers
Award for Virtualization of Servers
Slide 39: Award for Data Center Optimization
Award for Data Center Optimization
Slide 40: Award for simplifying customer amendment request process
Award for simplifying customer amendment request process 40
Slide 41: Cover story on Banking Frontiers
Cover story on Banking Frontiers 41 DCB Bank Limited
Slide 42: DCB Bank Limited
42 DCB Bank Limited
Slide 43: Four pillars of digital agenda
Four pillars of digital agenda 1 2 Core Applications – continuously Mobile / Tab – create customer upgrade business applications to convenience by optimum use of support digital transformation mobile devices 3 4 Payments – innovative solutions Infrastructure – modernize to which is dynamic, secure a
Slide 44: Pilot launch of India's first Aadhaar number and fingerprint biometric ATM
Pilot launch of India’s first Aadhaar number and fingerprint biometric ATM 44
Slide 45: User friendly mobile banking – Android & iOS
User friendly mobile banking – Android & iOS
Slide 46: Passbook on mobile – Android & iOS
Passbook on mobile – Android & iOS
Slide 47: Missed Call Services for basic banking needs
Missed Call Services for basic banking needs
Slide 48: IMPS 24/7/365 enabled for branch, internet and mobile
IMPS 24/7/365 enabled for branch, internet and mobile DCB is the 2nd private bank to enable IMPS thru branches 48
Slide 49: Elegant solution to manage customer payment mandates
Elegant solution to manage customer payment mandates 49
Slide 50: Rupay Cards enabled on POS
a 8ce Bank RuPayp Rupay Cards enabled on POS
Slide 51: Smart Credit – reduce credit card interest cost, online
Smart Credit – a simple way to reduce credit card interest cost, online
Slide 52: Mutual Funds Online Facility
Mutual Funds Online Facility
Slide 53: Business Internet Banking
Business Internet Banking 53
Slide 54: Mobile based Lead Generation tracking system
Mobile based Lead Generation tracking system to improve frontline effectiveness
Slide 55: Mobile solution for field collection control
Mobile solution for field collection control and customer convenience
Slide 56: Tab based application for frontline loan processing
Tab based application for frontline for obtaining customer information to speed up loan processing
Slide 57: e-KYC introduced in select branches
e-KYC introduced in select branches for customer convenience 57
Slide 58: DCB Bank website – simple, user friendly and responsive
DCB Bank website – simple, user friendly and responsive
Slide 59: Modern HR system
PHOTO AVAILABLE RITESH KUMAR DEPUTY MANAGER QUALITY ASSURANCE] & TESTING MUMBAI EDIT PROFILE Li MY SECTION ical ica RECRUITMENT f# PERFORMANCE APPRAISAL = t2 ONLINE SURVEY te Employee View Gh eertore vow HR Policy Employee Know How Documents Benefits o Actionables yi Kudos © Self-Appraisal Pending f
Slide 60: New Career Website designed to attract Gen Y
New Career Website designed to attract Gen Y
Slide 61: Talisma email solution for customer service
Talisma email solution to provide efficient customer service 61
Slide 62: New system to support Business Correspondent expansion
New system to support Business Correspondent expansion 62
Slide 63: Anti-money laundering system upgraded
Anti-money laundering system upgraded 63
Slide 64: Upgrade of network for better speed at branches
Upgrade of network for better speed at branches 64
Slide 65: 100% virtualized data center
100% virtualized data center – scalable, high availability at lower costs 65
Slide 66: Migrated to a modern Data Center in Powai
Recently migrated to state-of-the-art perhaps one of the most modern Data Center in India located at Powai. 66
Slide 67: Thank you
Thank you To receive investor updates from DCB Bank Ltd., write in at investorrelations@dcbbank.com . Do let us know of any change in your contact details on the same email ID. 67 DCB Bank Limited