Dcb Bank Limited · NSE:DCBBANK
Dcb Bank — Q4 FY2020 Earnings Presentation
38 slides from Dcb Bank's earnings presentation, May 23, 2020
Slide 1: Cover letter to stock exchange
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Slide 2: Investor Presentation – Q4 FY 2020
Investor Presentation – Q4 FY 2020 May 23, 2020 DCB Bank Limited
Slide 3: 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 4: Branch Network March 31, 2020
Branch Network March 31, 2020 This map is for representation purpose only DCB Bank Limited 3
Slide 5: 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 2020 336 385,051 51.09% 0.71% *8.73% Q3 FY 2020 334 380,571 54.36% 1.03% *12.67% Q2 FY 2020 334 370,183 55.51% 0.99% *12.34% Q1 FY 2020 334 362,824 57.46% 0.89% *11.17% FY 2020 336 385
Slide 6: Key Indicators - II
Key Indicators - II INR mn Q4 FY 20 Q3 FY 20 Q4 FY 19 Y-o-Y Deposits 303,699 297,349 284,351 7% Of which CASA 65,192 69,413 68,099 (4%) Of which Retail Term 180,415 178,308 158,319 14% - Of which NRI Term 26,133 23,137 17,636 48% Net Advances 253,453 254,382 235,680 8% INR mn Q4 FY 20 Q3 FY 20 Q4 FY
Slide 7: Balance Sheet
Balance Sheet Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, INR mn 2014 2015 2016 2017 2018 2019 2020 Shareholder’s Equity 11,540 15,886 17,922 22,049 28,078 31,156 34,222 Deposits 103,251 126,091 149,260 192,892 240,069 284,351 303,699 Borrowings 8,601 11,638 11,479 12,758 19,267 27,232 3
Slide 8: Profit & Loss
Profit & Loss INR mn Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Net Interest Income 3,009 3,047 3,133 3,231 3,237 Other Income 993 868 1,014 931 1,099 - Commission, exchange 648 546 578 625 664 and brokerage - Profit on Sale of Investment 90 159 249 70 174 - Profit on Exchange Transaction 58 55 34 51 5
Slide 9: Profit & Loss
Profit & Loss INR mn FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Net Interest Income 5,082 6,195 7,971 9,954 11,493 12,649 Other Income 1,657 2,205 2,488 3,103 3,502 3,911 - Commission, exchange and brokerage 1,193 1,405 1,651 2,176 2,399 2,412 - Profit on Sale of Investment 277 423 454 454 386
Slide 10: Deposits Mix
Deposits Mix Deposits as on March 31, 2020 Residential Term *CASA Deposit 57% 21% Interbank Term Deposit 13% Non-Resident Term Deposit 9% * CASA includes NRI CASA 9 DCB Bank Limited
Slide 11: Advances Mix
Advances Mix Net Advances as on March 31, 2020 SME + MSME, 11% Corporate Banking, Mortgages, 42% 12% AIB, 21% Commercial Vehicle, 7% Others 2% Construction Gold Loan, 2% Finance, 3% 10 DCB Bank Limited
Slide 12: NIM, Yield and Cost of Funds
NIM, Yield and Cost of Funds FY FY FY FY FY FY Q4 FY Year Ended 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2019-20 Net Interest 3.72% 3.94% 4.04% 4.16% 3.83% 3.67% 3.64% Margin Yield on 12.63% 12.52% 12.03% 11.41% 11.29% 11.50% 11.37% Advances Cost of 7.67% 7.48% 6.91% 6.37% 6.61% 6.96% 6.88% D
Slide 13: Non Performing Assets
Non Performing Assets Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2015 2016 2017 2018 2019 2019 2019 2019 2020 Gross NPA 1.76% 1.51% 1.59% 1.79% 1.84% 1.96% 2.09% 2.15% 2.46% Net NPA 1.01% 0.75% 0.79% 0.72% 0.65% 0.81% 0.96% 1.03% 1.16% Provision 74.66% 77.55% 73.80% 75.7
Slide 14: Gross NPA Movement
Gross NPA Movement INR mn Q4 2018-19 Q3 2019-20 Q4 2019-20 FY 2019-20 Opening Balance 4,451 5,232 5,520 4,395 (+) Add 1 Fresh Slippages 985 2,017 1,498 6,577 Addition to Existing 22 15 11 63 NPAs (-) Less 2 2 Recoveries 368 815 326 1,725 Upgrades 454 513 387 1,792 3 3 Write Offs / Sacrifice 241 416
Slide 15: Covid benefits taken for Asset Classification as on March 31, 2020
Covid benefits taken for Asset Classification as on March 31, 2020 INR mn Number Amount Mortgages 181 462 Commercial Vehicle 73 45 MSME / SME 65 217 Agri Inclusive Banking 34 17 Gold Loans 495 101 Others 51 24 MFI / BC Loans 1,824 27 Total 2,723 893 In any portfolio there are customers who are “regu
Slide 16: Treasury
Treasury Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, INR mn 2013 2014 2015 2016 2017 2018 2019 2020 SLR 24,332 28,072 34,750 39,855 47,711 49,091 60,007 61,363 Non-SLR 5,552 4,236 4,872 3,478 10,468 13,099 18,434 16,052 Total 29,884 32,308 39,622 43,333 58,179 62,190 78,441 77,41
Slide 17: Capital Adequacy Ratios – Basel III
Capital Adequacy Ratios – Basel III Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, 2014 2015 2016 2017 2018 2019 2020 CRAR 13.71% 14.95% 14.11% 13.76% 16.47% 16.81% 17.75% -- Tier I 12.86% 14.21% 12.79% 11.87% 12.72% 13.10% 13.90% -- Tier II 0.85% 0.74% 1.32% 1.89% 3.75% 3.71% 3.85% RWA* 85
Slide 18: Ratings
Ratings Sep 30, Dec 31, Mar 31, Mar 30, Mar 30, Mar 31, Mar 31, 2013 2014 2016 2017 2018 2019 2020 CRISIL Long Term – A+/ AA-/ AA-/ Subordinated - - - - Stable Stable Stable Debt Certificates of A1+ A1+ A1+ A1+ A1+ A1+ A1+ Deposit Short – Term Fixed A1+ A1+ A1+ A1+ A1+ A1+ A1+ Deposits ICRA Long Ter
Slide 19: COVID-19 Impact
COVID - 19 IMPACT DCB Bank Limited 18
Slide 20: COVID-19 economic impact and outlook
COVID-19 As of now, economic activity has been significantly affected by the unavoidable steps taken by the government to limit the spread of Covid-19. Lock-down restrictions has dampened demand, disrupted labour and supply chain. Economic activity likely to resume in response to easing of lock-
Slide 21: Lock-down – Business Volumes Impact
Lock-down – Business Volumes Impact Item Impact Deposits / Liabilities Stable - MSMEs and Individuals using CASA to meet expenses during CASA lock-down Retail Term Deposits Steady growth Long Term Refinance Available and being utilized Liquidity Coverage Ratio Well above 100% Loans Business Loans (L
Slide 22: Lock–down Financials Impact
Lock–down Financials Impact Item Impact Expected to be stable until moratorium. Ease of lock-down will determine Net Interest Income (NII) pace of growth of loan portfolio and NII Opportunities to grow using digital capabilities - Health Insurance, Life Insurance (non medical), General Insurance, Re
Slide 23: Strengths to withstand COVID-19
Strengths to withstand COVID -19 Financials Deposits / Liquidity Loan Portfolio Management - Capital Adequacy – - Low and declining top 20 - Diversified, Secured - Top Team continuity / 17.75% deposits ratio (9.07% as stability - Tier I – 13.90% on May 20, 2020) - Granular (Average ticket size appro
Slide 24: Near Term Focus
Near Term Focus Intensely manage portfolio stress / potential risks. Continuously engage with customers and provide relief within regulatory guidelines Actively reduce Costs, accelerate digital agenda Continue Retail Term Deposits momentum Generate Fee Income through digital channels and pho
Slide 25: Mortgages – Home Loans and Business Loans (LAP)
Mortgages – Home Loans and Business Loans (LAP) Portfolio Value HOME LOANS : 38% BUSINESS LOANS (LAP) : 62% Salaried Self employed Salaried Self employed Customer Segment 21% 79% 10% 90% Moratorium By Value 52% 56% JAN 20 FEB 20 MAR 20 APR 20 JAN 20 FEB 20 MAR 20 APR 20 EMI Collected 98.5% 98.0% 93.
Slide 26: Overview
Overview 25 DCB Bank Limited
Slide 27: Products and Services
Products and Services Retail Banking SME, Corporate Banking, NBFCs, Co-operative Banks Deposit Products: Loans: Bills Collection Term Loans Corporate Salary Auto Loan Current Account Trade Current Account Current and Savings Commercial Vehicle Foreign Exchange Working Capital L
Slide 28: Investor Profile as on March 31, 2020
Investor Profile as on March 31, 2020 Key Non Promoter Shareholders % 4.54% Aditya Birla Sunlife Mutual Fund * ***Institutions Bodies 4.43% 58.14% Corporate HDFC Small Cap Fund 2.98% 4.02% India Advantage Fund S4 I * 3.99% ICICI Prudential Mutual Fund 3.43% DSP Small Cap Fund 3.07% Matthews India Fu
Slide 29: Board of Directors
Board of Directors Has held leadership positions in various organizations, such as Uniliver group, RPG group, etc. Ashok Barat He superannuated in 2016 as Managing Director & CEO, Forbes & Company Ltd. He has been a Member (and Chairman in some) of the Boards of various companies-listed and private.
Slide 30: Management Team
Management Team Abhijit Bose - *25 yrs work exp. Aditya Prasad – 31 yrs work exp. Ajay Mathur – 23 yrs work exp. Chief Credit Officer Chief Compliance Officer Head – Collections & Commercial Vehicles Ajit Kumar Singh - 28 yrs work exp. T P Anuradha – 18 yrs work exp. Bappa Roy – 27 yrs work exp. Hea
Slide 31: Digital Update
Digital Update 30 DCB Bank Limited
Slide 32: DCB Remit online outward remittance
DCB Remit is an easy and convenient online Outward Remittance service offered by DCB Bank. It’s a paperless, online remittance facility with zero fees. 31 DCB Bank Limited
Slide 33: DCB Mobile Banking with new features
DCB Mobile Banking with new features launched. Features include Easy Registration, Bill Payment, Scan & Pay, Multiple Payment with Single OTP, Fixed Deposit via app, and Card Block & Unblock via app. 32 DCB Bank Limited
Slide 34: DCB Zippi Online Fixed Deposit
DCB Zippi Online Fixed Deposit in a jiffy! Open Fixed Deposit Account within minutes from home. For non DCB Bank Customers. 33 DCB Bank Limited
Slide 35: Open Banking Platform
DCB Bank has adopted Opening Banking Platform to nurture new business models and Fintech in a shorter time frame. 34 DCB Bank Limited
Slide 36: Online Account Opening Platform for NRI Customers
New Online Account Opening Platform for NRI Customers. Enables NRI Customers to open DCB NRI Account from their country of residence. 35 DCB Bank Limited
Slide 37: Pool Account on Government e Marketplace (GeM)
DCB Bank is enabled for Pool Account on Government e Marketplace (GeM) 36 DCB Bank Limited
Slide 38: 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. Corp. & Reg. Office: 6th Floor, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel, Mumbai – 400013 CIN: L999