DCB_final_investors_presentation investors presentation .pdf
- 1. 1 Development Credit Bank Limited FY 2006-07 AUDITED ANNUAL RESULTS INVESTOR PRESENTATION
- 2. 2 Development Credit Bank – Promoter & History ƒ Built on over 75 years of Trust, Tradition & Togetherness ƒ Started in 1930s and converted to ‘Development Co-operative Bank’ in 1981 ƒ Converted into a private sector bank in 1995 leveraging upon the banking license granted to Aga Khan Fund for Economic Development (AKFED) ƒ AKFED currently is the largest shareholder in the bank with a 29.6% stake ƒ The recently launched initial public offering enjoyed a phenomenal success, being oversubscribed 35 times ƒ Current shareholder base of 90,000
- 3. 3 Vision and Mission VISION ƒ To be the gold standard in customer service in Indian banking THE MISSION ƒ To be the preferred financial services provider amongst the Bank's peers with a passion for excellence in service Repositioning DCB ƒ “Feel the difference”
- 4. 4 One-Stop Shop to Meet Diverse Customer Needs Corporate & Business Banking Group • Corporate Deposit Accounts • Cash Management • Agriculture Loans • Commodity Exchange related Facilities • Supply Chain Financing • Foreign Exchange • DCB Trade Current Account • Auto and Automotive Product Programme • Letter of Credit Product Programme • Industry-specific Financial Solution • Third Party Distribution of Mutual Funds & Insurance • Working Capital Finance • Corporate Loans • Term Loans • Bill Finance • Export / Import Finance • Corporate Current Accounts • Forex Spot and Forward • Contracts Treasury • Derivative Products • Arranging Forex Funds for Import Finance Consumer Banking Group • Personal Loan • Easy Business •Loan against Gold • Working Capital Loan • Commercial Vehicle Loan • Construction Equipment Loan • Home Equity • Demat Account • Mutual Funds • Bancassurance • Phone & Mobile Banking • Internet Banking • International Debit Card • ATM Services • Lockers • Utility Bill Payment • VISA Money Transfer • Electric Fund Transfer • Auto Sweep Facility • Any Branch Banking • Savings Account • Current Account • Deposit Account • Privilege Banking
- 5. 5 Branch Network Spread Across • Maharashtra • Gujarat • Andhra Pradesh • Karnataka • New Delhi • Goa • Tamil Nadu • Haryana • West Bengal • Daman & Diu • Dadra & Nagar Haveli • 67 Branches • 5 Extension Counters • 34 Satellite Offices • 102 ATMs • 18,000 ATMs network • Customer base of ~650,000 RBI permission obtained for opening of 8 new branches
- 6. 6 Regional and Cluster Orientation People and Culture Business Strategy Service Quality Consumer Banking Business Commercial Banking Business Use of Technology Brand
- 7. 7 Business Update ƒ RBI permission obtained for opening 8 new branches ƒ Launched TRIO- a unique triple combination of Fixed Deposit and Savings Deposit with Personal Accident Insurance benefit ƒ Empanelled with MCX as a Clearing Bank ƒ Call Center opened at Malad, Mumbai ƒ Prime Lending Rate increased by 75 bps (effective April 1, 2007) ƒ ESOPs granted to eligible staff - 86% of staff have now been granted stake in the Bank ƒ Upgradation to Finacle Version 7.0.11 completed smoothly
- 8. 8 Share Holding Pattern Shareholding Pattern AKFED 30% FIIs & Foreign Cos. 36% FIs, MFs, Banks & Others 11% Retail 23% AKFED FIIs & Foreign Cos. FIs, MFs, Banks & Others Retail
- 9. 9 Performance Highlights Summary FY 2007 FY 2006 % Growth Q4-FY 2007 Q4 -FY 2006 Q on Q Growth % Net Profit/(Loss)¹ 7.4 (85.3) - (0.4) (48.7) - Net Interest Income 119.5 75.2 59% 38.5 19.9 93% Non Interest Income 92.5 55.2 67% 26.9 14.5 85% Operating Expenses 171.8 150.1 14% 50.6 48.2 5% Operating Profit 40.2 (19.7) - 14.8 (13.8) - Provisions 32.9 65.6 -50% 15.2 34.8 -56% Deposits 4,415.2 3,124.0 41% - - - CAR 11.34% 9.66% - - - - Advances 2,658.5 1,867.3 42% - - - Net Interest Margin 2.69% 1.78% - - - - Cost of Funds 5.96% 5.47% - - - - (Rs. Cr) ¹The Net Profit for FY 2007 is after providing for Standard Assets at the enhanced rates as per regulatory requirement, resulting in additional provision of Rs.10.6 crores
- 10. 10 Performance Highlights | Quarterly Performance Summary FY 2007 Q4- FY2007 Q3- FY2007 Q2 – FY2007 Q1- FY2007 Q4- FY2006 Net Interest Income 119.55 38.45 31.56 26.82 22.72 19.84 Non interest Income 92.49 26.88 27.19 17.87 20.55 14.51 Total Income 212.04 65.33 58.75 44.69 43.27 34.35 Operating Expenses 171.79 50.56 45.27 41.27 34.69 48.17 Operating Profit 40.25 14.77 13.48 3.42 8.58 (13.82) Provisions 32.89 15.18 10.71 2.75 4.24 34.83 Net Profit¹ 7.37 (0.41) 2.77 0.67 4.34 (48.65) ¹The Net Profit for FY 2007 is after providing for Standard Assets at the enhanced rates as per regulatory requirement, resulting in additional provision of Rs.10.6 crores (Rs. Cr)
- 11. 11 Performance Highlights | Quarterly Performance (Rs. Cr) March 31, 2007 Dec 31, 2006 Sept 30, 2006 June 30, 2006 March 31, 2006 Growth in FY07 over FY 06 Assets Advances 2658.5 2152.4 1873.1 1927.4 1867.3 42% Investments 1846.6 1346.1 1504.6 1597.7 1306.9 41% Other Assets 757.2 964.7 685.5 626.9 567.5 33% Total Assets 5262.4 4463.2 4063.2 4152.0 3741.7 41% Liabilities Shareholders’ Funds 329.8 334.2 168.9 168.3 164.2 98% Deposits 4415.2 3692.1 3514.4 3587.1 3124.0 41% Borrowings 154.4 93.0 55.1 65.6 129.8 19% Other Liabilities 362.9 343.9 324.8 331.0 323.7 12% Total Liabilities 5262.4 4463.2 4063.2 4152.0 3741.7 41%
- 12. 12 Performance Highlights | Deposits & Cost of Funds Deposits Cost of Funds (%) 5.96% 5.47% FY06 FY07 CoF 3,124 4,415 1000 1500 2000 2500 3000 3500 4000 4500 5000 FY06 FY07 (Rs. cr) ƒ 41% growth in Deposits ƒ Average CASA as a % of Total Deposits has grown from 26% as on 31st March, 2006 to 29% as on 31st March, 2007 ƒ Quality growth rather than mere numbers
- 13. 13 Performance Highlights | Advances 1,867 2,659 500 1000 1500 2000 2500 3000 FY06 FY07 Advances 8.29% 10.07% FY06 FY07 Yield Yield (%) (Rs. cr) ƒ 42% growth in Advances ƒ Retail Advances grew (Y-o-Y) by 54% ƒ Corporate Advances grew (Y-o-Y) by 50% ƒ Yield on Total Advance grew by 1.78 bps
- 14. 14 Performance Highlights | Net Interest Margin Net Interest Margin Interest Income (Rs. Cr) Non Interest Income (Rs. Cr) 1.78% 2.69% FY06 FY07 NIM 27 15 5 10 15 20 25 30 35 40 4QFY06 4QFY07 92 55 30 40 50 60 70 80 90 100 FY06 FY07 120 75 50 65 80 95 110 125 140 FY06 FY07 38 20 5 10 15 20 25 30 35 40 45 4QFY06 4QFY07 ƒ Net Interest Income grew (Y-o-Y) by 59% ƒ Non Interest Income grew (Y-o-Y) by 67% ƒ NIM moved up by 91bps
- 15. 15 Performance Highlights | Improving Asset Quality Gross NPA & Net NPA 314 313 304 146 78 78 60 44 1QFY07 2QFY07 3QFY07 4QFY07 Gross NPA Net NPA Net NPA % 9.37% 7.55% 6.16% 4.50% 1.64% 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1 FY03 FY04 FY05 FY06 FY07 Net NPA (Rs. cr) ƒ Net NPA% reduced from 4.50% in FY06 to 1.64% in FY07 ƒ With Standard Assets Provision, Net NPA% reduced from 4.13% in FY06 to 0.86% in FY07 ƒ With Standard Assets Provision, Provision Coverage has increased from 72.78 % to 80.39 %
- 16. 16 Performance Highlights | Retail Assets Retail Assets 698 1,077 200 300 400 500 600 700 800 900 1000 1100 1200 FY06 FY07 ƒ Retail Assets constitutes 38% of the total advances as on March 31, 2007, as against 33% in 31, 2006 ƒ Retail Assets grow 54% Y-o-Y (Rs. cr)
- 17. 17 Human Capital ƒ Dedicated staff strength in FY 07 : 1810 ( including 480 sales trainees) as compared to FY 06 : 1279 (including 224 sales trainees) ƒ Re-profiling of staff continues – ERS completed during the year ƒ Average age of Employees has been reduced from 39 years as at March 2006 to 35 years as at March 2007 ƒ Employee turnover has been reduced from 37% in FY 06 to 22% in FY 07 ƒ Employee engagement level within the bank is comparable with the best in Indian industry, as is borne out by Hewitt’s Best Employer Survey 2007 ƒ A robust Performance Management System has been put in place ƒ Quality Circles launched across all branches
- 18. 18 Safe Harbour Neither the information nor any opinion expressed in this presentation constitutes an offer, or invitation to make an offer, or to buy any security issued by the Company. This presentation contains predictions, estimates or other information regarding the Bank’s operations which are forward looking in nature. While these forward looking statements represent our best current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially and may involve risk and uncertainty. This presentation is prepared for general purposes only and does not have any regard to the specific investment objectives, financial situation and particular needs of any specific person. No liability for any loss will arise with the company as a result of the action taken on the basis of information contained herein. For a discussion of the risks and uncertainties that may cause results to differ, you should review DCB’s filings with stock exchanges, including annual report and Qualify disclosures. www.dcbl.com
- 19. 19 Thank You