DCB Bank Ltd. Annual Report FY2020-21 DCB Bank Ltd. Annual Report
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DCB Bank Ltd. Annual Report FY 2020-21 DCB Bank reaches out to customers from 352 branches across India. 103 89 92 68 Metro Urban Branches Semi Urban Rural Branches Branches Branches 2 | Annual Report 2020-21 BEING A SEARCH LIGHT IN DARK TIMES India is feeling the huge second wave impact of Covid-19 pandemic which engulfed the world in early part of year 2020. Covid-19 has devastated the lives of millions of people in India and across the globe. The second wave in India is continuing to cause misery and incalculable loss in terms of lives, family distress and economy. India handled the first wave of the pandemic very well, however the second wave is severe and harsh. It has pushed the health infrastructure beyond its limits. Several emergency measures are now being taken to address the current situation. We sincerely hope for things to start improving in the coming days. Every crisis presents an opportunity and creates a possibility for enlightenment. We need to scan our search light and look for possible creative solutions. Search lights are about focus and concentration; not about diffusion and divergence. At DCB Bank, our people at all levels have acted as search lights; focused attention on new ways of doing business, keeping our doors open to our customers and ensuring that even by working from home all services could be delivered without interruption. The resilience, energy, creativity and tenacity of all DCBians in this time of crisis has been exceptional. It came from the heart more than just duty. The year ahead is going to be challenging at best but we are determined to find new solutions using all means at our disposal (technology being an important one) to ensure that our services are delivered efficaciously. Annual Report 2020-21 | 1 DCB Bank Limited CONTENts DCB Bank Company Auditors’ Information 03 Report 94 Chairman’s Balance Statement 04 Sheet 102 Corporate Social Profit & Loss Responsibility Account Initiatives 06 103 Notice to Cash Flow Members 10 Statement 104 Directors’ Schedules Report 30 106 Corporate Basel III Governance 65 164 DCB Bank Vision Our vision is to be the most innovative and responsive neighbourhood Bank in India serving entrepreneurs, individuals and businesses. DCB Bank Values Treat Everyone with Dignity – Respect | Do What is Right – Ethical | Be Open & Transparent – Fair Sense of Urgency, Passion & Energy – Dynamic | Go the Extra Mile, Find Solutions – Stretch Improve Continuously – Excellence | Play as a Team, To Win – Teamwork | Support the Society – Contribute 2 | Annual Report 2020-21 Corporate Overview Management Reports Financial Statements COMPANY INFORMATION Senior Management Team Board of Directors Mr. K. K. Pandey Mr. Venkattesh R. Head–Channel Sales & Emerging Mr. Nasser Munjee President and Head–Operations, Markets Technology & Human Resources Chairman Mr. Krishna Ramasankaran Mr. Bharat Sampat Head –Credit, Retail & Small & Mr. Murali M. Natrajan President and Chief Financial Medium Enterprises (SME) MD & CEO Officer Mr. Manoj Joshi Mr. Ashok Barat Mr. Praveen Kutty Chief Compliance Officer (w.e.f. Mr. Amyn Jassani President and Head – Retail & June 6, 2021) & Chief of Internal Small and Medium Enterprises Vigilance Mr. Iqbal Khan (SME) Banking Ms. Meghana Rao Mr. Jamal Pradhan Mr. Sridhar Seshadri Head–Branch Operations (Till January 14, 2021) President and Chief Risk Officer Mr. Murali Mohan Rao Manduva Mr. Abhijit Bose Mr. C. Narasimhan Chief Technology Officer President and Chief Credit Officer (Till October 11, 2020) Mr. Narendranath Mishra Mr. J.K. Vishwanath Head–Agri & Inclusive Banking Ms. Rupa Devi Singh President and Head–Corporate and Mr. N. C. Kaushal SME Banking Mr. Rafiq Somani Business Head – Digital Banking Mr. Shabbir Merchant Mr. Pankaj Sood Company Secretary Mr. Shaffiq Dharamshi Head–Branch Banking-Retail Ms. Rubi Chaturvedi Mr. Somasundaram PR Mr. Ravi Kumar Vadlamani Head-Operations & Key Projects Mr. S. Sridhar Functional Management Mr. Sukesh Bhowal (Till October 11, 2020) Heads Head–Mortgages & Gold Loans Mr. Aditya Prasad Ms. T.P. Anuradha Chief Compliance Officer Chief Internal Auditor (Till June 6, 2021) Mr. Ajay Mathur Head–Collections & Commercial Statutory auditors Vehicles S. R. Batliboi & Associates, LLP, Mr. Ajit Singh Chartered Accountants (Registration No.101049W/ Head Treasury And Financial E300004) Institutions Group Mr. Damodar Agarwal Registered office Head–Strategic Initiatives and Alternate Channels DCB Bank Limited Mr. Gaurav Mehta 601 & 602, Peninsula Business Park, 6th Floor, Tower A, Senapati Bapat Head–Marketing, Public Relations Marg, LowerParel, Mumbai-400013 (PR) & Corporate Communications & Investor Relations Annual Report 2020-21 | 3 DCB Bank Limited CHAIRMAN’S STATEMENT began my Statement with the creation of a could move forward in 2019 with the vaccine, and a better without interruption. following words: understanding of the I am glad to report “We are living in mutations that are that all of this was a dynamic and taking place, we can accomplished in record Iunpredictable world. foresee an end to this time and the entire There are complex set pandemic in the not- credit goes to our staff of variables that are too-distant future. who worked tirelessly to constantly changing ensure the smoothest making it very difficult Beginning the current transition to a new work to visualize stability or financial year in a environment. predict the future with lockdown was extremely any level of accuracy”. challenging. At DCB Proactively, the Bank The events of year Bank, we had to re- also called thousands 2020 and 2021 have invent the process of customers to enquire amply demonstrated of execution of our whether we could be what I meant. Little services and operations of any service, in these did we know that the through “Working From troubled times, with entire globe would be Home” with IT support. respect to their banking blighted by a pandemic We had to provide needs. A centralized so virulent that in the laptops very quickly to task force was created short term, there was key staff to enable them to monitor the Covid-19 not much that could to work from remote impact on our staff be done even by an locations. Banking is and their families and advanced modern an essential service to ensure that they society. Fortunately, therefore branches received whatever had a responsibility to assistance that they remain open. However, required. So far, more strong Covid-19 than 1,000 staff have protocols had to be been infected and I am happy to report that implemented to ensure unfortunately, in the safety of staff and last year or so, 6 staff the operations of the Bank customers. Our call members have lost were maintained with ratios centres and back office their lives. I, on behalf remaining healthy albeit our operations had to be of the entire Board, reconfigured to ensure would like to convey having to carry much higher customer service. Our our deep condolences provisions given the economic senior management to their families for this team worked full irreplaceable loss. uncertainties that our customers time to ensure that face for their businesses. guidance and support Unprecedented was speedily delivered conditions require and that operations a response of equal 4 | Annual Report 2020-21 Corporate Overview Management Reports Financial Statements measure. The Bank to meet stress on asset and its Committees consequence of these has used this period quality due to Covid-19 and the process of partnerships. to further intensify pandemic. Profit after governance has worked its online training of Tax for the year was extremely well with DCB Bank has matured all staff who were at `335.79 crore against more frequent meetings during this crisis and home, move forward `337.94 crore in the and full attendance. demonstrated its on its data analytic previous year. The business model ability to respond capabilities, intensify of the Bank has been to unprecedented its risk assessment As we look forward, adapted to create a new circumstances. The matrix and mitigation the Bank is determined operational paradigm. strong culture of the actions, its compliance to grow at a healthy The future possibilities organization built framework, and its pace through a wider for productivity, up over many years ability to respond to branch network that efficiency and digital explains the dedication regulators, and most can offer full services analytics have been and creativity of its importantly to upgrade in new regions. Our enhanced which will be people. An institution its IT systems. basic strategy remains rolled out more fully in is defined by its culture unchanged. We will the year ahead. What which is principle I am happy to report continue to have a this means is that the centered with an that the operations largely secured portfolio future could be very extremely high degree of the Bank were in our chosen field different from the past. of integrity in its maintained with ratios of concentration – It has implications for operations. People have remaining healthy albeit Mortgages, MSME, SME, working from home, always been encouraged our having to carry Gold Loans and Agri more streamlined back to feel that they do much higher provisions / Inclusive Banking. office operations and not just work for the given the economic We will continue to be call centres, intelligent institution – they are an uncertainties that our granular on both sides processes developed integral part of building customers face for their of our balance sheet. through data analytics the institution. In the businesses. Corporate lending has and new approaches years ahead it is my shown modest growth for customer service fervent hope that this Notwithstanding and will continue to do delivery. New digital culture thrives and DCB external challenges, so until the economic products through the Bank is admired for the Bank continued to environment improves, internet are likely to what it does and how it make steady progress in and real economic enhance the service does it by the external FY 2021.