Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q4 FY2013 Earnings Presentation
35 slides from Dcb Bank's earnings presentation, April 2013
Slide 1: Investor Presentation – Q4 FY 2013
Investor Presentation – Q4 FY 2013 April 2013 Development Credit Bank Limited
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Development Credit Bank Limited (the “Bank”). This presentation has been prepared for information purposes only and is not an
Slide 3: DCB Bank – Overview
DCB Bank – Overview DCB Bank – at a Development Credit Bank Ltd (DCB Bank) http://www.dcbbank.com is a modern emerging new generation private sector bank. glance Present since 1930s, DCB is the only co-operative bank in India to have been converted into a private sector commercial bank in 1995 D
Slide 4: Financial Performance
Financial Performance 4 Private & Confidential Development Credit Bank Limited
Slide 5: Highlights
Highlights INR Mn March 31, 2013 Balance Sheet 1,12,788 Net worth 10,031 Profit after Tax 1,021 Return on Equity 11.13% Return on Assets 1.06% 5 Private & Confidential Development Credit Bank Limited
Slide 6: Highlights
Highlights Q4 FY Q4 FY Inc / Inc / INR mn FY 2013 FY 2012 2013 2012 (Dec) (Dec) Net Profit 341 173 97.4% 1,021 551 85.3% Total Income 1,146 851 34.6% 4,014 3,281 22.4% Operating Profit 430 239 79.9% 1,261 838 50.5% Provisions 89 66 (34.5%) 241 287 16.3% Cost to Income Ratio 62.5% 71.9% - 68.6% 74.5%
Slide 7: Steady Improvement in Profits
Steady Improvement in Profits Net Profit / Loss * INR mn 341 269 221 189 173 1,021 551 214 (881) (785) Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 * Net Profit / (Loss) represents post tax numbers 7 Private & Confidential Development Credit Bank Limited
Slide 8: Improvement in Income, quality
Improvement in Income, quality Net Interest Income INR mn 2,844 815 2,277 720 670 639 1,972 1,891 571 1,416 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Other Income INR mn 331 281 275 275 289 1,201 1,121 1,170 1,075 1,004 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q4
Slide 9: Staff Cost and Other Cost
Staff Cost and Other Cost Staff Cost INR mn 1,379 359 350 1,246 341 310 329 1,044 1,064 881 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Other Cost INR mn 341 357 339 1,376 1,374 303 337 1,197 1,127 1,088 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q4 FY12 Q1 FY13 Q2 F
Slide 10: Operating Income and Cost to Income
Operating Income and Cost to Income Operating Income INR mn 4,014 1,146 945 1009 3,173 3,281 914 3,012 851 2,491 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Operating Cost INR mn 71.90% 72.85% 71.95% 62.45% 68.52% 716 76.27% 80.62% 74.45% 692 71.43% 666 680 2,753
Slide 11: Operating Profit
Operating Profit Operating Profit INR mn 1,261 430 318 860 838 265 753 248 239 483 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Provisions INR mn 1,634 1,268 89 66 59 646 44 49 287 241 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13
Slide 12: Growth in chosen Businesses continue
Growth in chosen Businesses continue Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, INR mn 2010 2011 2012 2012 2012 2012 2013 CASA 16,927 19,755 20,347 20,662 21,723 21,823 22,716 Retail Term 23,056 27,085 34,320 36,721 38,888 42,084 43,845 Deposits NRI Total 1,632 1,815 3,084 3,707 4,105 4
Slide 13: Balance Sheet
Balance Sheet Total Assets INR mn 112,788 96,436 91,002 92,983 86,769 74,129 59,430 61,367 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 Mar 31, 2013 Net Advances* INR mn 65,861 56,710 59,644 54,491 52,844 42,817 32,740 34,597 Mar 31, 2009 Mar 31, 2010 Ma
Slide 14: Diversified Portfolio
Diversified Portfolio Portfolio* as on Mar 31, 2010 Portfolio* as on Mar 31, 2011 M o r t g ag es M o rtgages C V / C E/ ST V L 2 5% 2% Per so nal Lo ans 12% C V/ C E/ ST VL P erso nal Lo ans 0 .2 % Others 8% A IB 3% 3% 20% SM E+M SM E A IB 17% 25% Ot her s 3% C o r p o r at e B anking SM E+M SM E 2
Slide 15: Build Stable Deposit Base
Build Stable Deposit Base Deposits INR mn INR mn 7,660 3,630 3,075 2,705 53,262 2,208 50,129 46,573 2,601 44,927 1,590 40,801 3,957 33,746 29,356 28,101 19,755 20,347 20,662 21,723 21,823 22,716 16,927 14,411 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012
Slide 16: Deposits Per Branch
Deposits Per Branch Retail CASA & Retail Term Deposits INR mn 62,701 64,730 56,492 59,394 53,482 42,083 43,845 45,540 38,888 34,320 36,721 39,034 31,380 27,085 23,056 18,132 18,455 19,162 19,771 20,506 20,618 20,885 13,248 15,978 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 3
Slide 17: Strong Provision Coverage
Strong Provision Coverage Key Ratios 8.69% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 91.17% 89.25% 88.04% 87.64% 88.50% 85.71% 82.50% 70.04% 5.85% 4.40% 4.18% 3.86% 3.80% 3.18% 3.11% 0.96% 0.57% 0.75% 0.73% 0.75% 0.68% Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 20
Slide 18: Yield, Cost of Funds and NIM
Yield, Cost of Funds and NIM Net Interest Margin 3.52% 3.25% 3.18% 3.38% 3.34% 3.13% 3.12% 3.24% 2.79% FY 2010 FY 2011 Q4 FY12 FY 2012 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 FY 2013 Yield on Advances, Base Rate & Cost of Funds 12.91% 12.71% 12.73% 12.84% 12.60% 12.69% 12.75% 12.33% 11.12% 10.50% 10.50% 10.
Slide 19: Capital Adequacy Ratios
Capital Adequacy Ratios Capital Adequacy Ratios – Basel II 14.85% 15.41% 14.49% 13.97% 13.71% 13.30% 13.25% 1.60% 13.61% 2.92% 1.31% 1.26% 1.08% 1.80% 0.99% 2.15% 13.81% 13.18% 12.63% 12.62% 11.50% 11.93% 11.10% 12.71% Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec
Slide 20: Other Income
Other Income INR mn FY 2010 FY 2011 Q4FY12 FY 2012 Q1FY13 Q2FY13 Q3FY13 Q4FY12 FY 2013 Commission, exchange 682 683 230 786 206 217 222 248 893 and brokerage Sale of investments 178 253 26 118 38 22 27 52 139 Sale of land, buildings (3) 11 (13) (28) (2) (1) - (14) (17) and other assets Exchange tran
Slide 21: Treasury
Treasury INR mn Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 SLR 15,789 17,512 20, 219 24,332 Non-SLR 4,390 5,439 4,959 9,255 Total Investments * 20,179 22,951 25,178 33,587 HTM 16,890 18,847 20,845 23,606 AFS 3,263 3,029 3,541 5,155 HFT 26 1,075 792 4,826 Total Investments * 20,179 22,951 25
Slide 22: Balance Sheet
Balance Sheet Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, INR mn 2010 2011 2012 2012 2012 2012 2013 Shareholder’s Equity 6,011 6,215 8,614 8,801 9,020 9,690 10,031 Deposits 47,873 56,102 63,356 68,294 71,370 75,582 83,638 Borrowings 1 5,035 8,607 11,235 10,101 8,801 7,175 15,256 Other Li
Slide 23: Profit & Loss
Profit & Loss INR mn FY 2010 FY 2011 FY 2012 FY 2013 Net Interest Income 1,416 1,891 2,277 2,844 Other Income 1,075 1,121 1,004 1,170 Operating Income 2,491 3,012 3,281 4,014 Operating Expenses (2,008) (2,152) (2,443) (2,753) Operating Profit 483 860 838 1,261 Total Provisions (1,268) (646) (287) (2
Slide 24: Profit & Loss
Profit & Loss INR mn Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Net Interest Income 570 639 670 720 815 Other Income 281 275 275 289 331 Operating Income 851 914 945 1,009 1,146 Operating Expenses (612) (666) (680) (692) (716) Operating Profit 239 248 265 318 430 Total Provisions (66) (59) (44) (49) (8
Slide 25: Business Strategy
Business Strategy 25 Private & Confidential Development Credit Bank Limited
Slide 26: Strong Presence in the Western Region
Strong Presence in the Western Region Branch Network ANDHRA PRADESH: (10) GOA: (4) GUJARAT: (19) HARYANA: (1) KARNATAKA: (4) KERALA: (1) MADHYA PRADESH: (3) MAHARASHTRA: (35) Mumbai & Its Suburbs (28) NEW DELHI: (6) ORISSA: (3) PUNJAB: (1) Existing Branches 94 RAJASTHAN: (1) New Licenses 4 DCB ATM
Slide 27: Products & Services
Products & Services Retail Banking SME, Corporate Banking, NBFCs, Co-operative Banks Deposit Products: Loans: Current and Savings Auto Loans* Current Account Cash Management*** Term Deposits Commercial Vehicle* Trade Current Account RTGS /NEFT NRI Deposits Construction Equipment*
Slide 28: Business Strategy
Business Strategy Rely mainly on Retail Deposits (Term, CASA) for funding. Expand branches in Tier 2 to Tier 6. Grow Retail Mortgages, MSME, SME, Commercial Vehicle, Tractors, Gold Loans, mid- Corporate and Agri Loans. Create a diversified portfolio. Limit unsecured lending and lumpy exposures.
Slide 29: Overview
Overview 29 Private & Confidential Development Credit Bank Limited
Slide 30: Key Milestones
Key Milestones In Existence Since 1930s 1981 1984 1988 1995 2004 2006 Amalgamation of Multi-State Co- Acquired Conversion to Classified as a IPO Masalawala Co- operative Bank “Scheduled” Development “New Generation operative Bank and status from Credit Bank Ltd. Private Sector Ismailia C
Slide 31: Strong Investor Profile
Strong Investor Profile Shareholding Pattern (March 31, 2013) Key non-promoter shareholders Tano Mauritius India FVCI II : 4.77% WCP Holdings III : 4.70% *AKFED and PJI 18.47% The South India Bank Ltd : 3.68% ***Institutions 24.08 Al Bateen Investment Co LLC: 2.95% Others (Non- Tata Capita
Slide 32: Experienced Board
Experienced Board 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 upliftment of the poor. Altaf Jiwani With expertise in Foreign Exchange, Risk Management and Trade F
Slide 33: Strong Management Team
Strong Management Team Abhijit Bose Gaurav Mehta Ajay Mathur Head – Retail Assets & Strategic Alliances Head – Marketing, Corporate Head – Collections Standard Chartered Bank, Citibank, Communication & Public Relations CGSL and Citibank – 20 yrs exp Eldeco Housing Industries and GIC HSBC India, Conv
Slide 34: Ratings
Ratings Jul 31, 2009 Sep 30, 2011 Dec 31, 2012 Feb 28, 2013 CRISIL - Long Term BBB/Stable BBB +/Stable BBB +/Positive A-/Stable - Short Term P1 A1 A1 A1+ BWR A- BWR A- BWR A- BWR A- Brickworks /Stable /Stable /Stable /Stable 34 Private & Confidential Development Credit Bank Limited
Slide 35: Thank you
Thank you 35 Private & Confidential Development Credit Bank Limited
Development Credit Bank Limited (DCB Bank) — Q4 FY2013 Earnings Presentation on 6ix