Corporate Presentation
November 2010
© Copyright IBM Corporation 2008 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”).
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This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Bank, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Bank or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding expansion plans and the benefits there from, fluctuations in our earnings, our ability to manage growth and implement strategies, intense competition in our business including those factors which may affect our cost advantage, our ability to attract and retain highly skilled professionals, changes in technology, availability of financing, our ability to successfully complete and integrate our business plans, liabilities, political instability and general economic conditions affecting our industry. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or developments.
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© Copyright IBM Corporation 2008 2 Contents
Development Credit Bank – Overview
Recent Events
Business Strategy & Financials
Annexure
© Copyright IBM Corporation 2008 3 DCB – Overview
DCB – at a glance Development Credit Bank Ltd (DCB) http://www.dcbl.com is a modern emerging new generation private sector bank. Present since 1930s, DCB is the only co-operative bank in India to have been converted into a private sector commercial bank in 1995 Distribution network of 80 branches across 28 cities and 113 ATMs (as on September 30, 2010)
Comprehensive Business model focused on achieving a balance between Retail, Micro SME(MSME), SME, Agri/Microfinance and mid- product range & Corporate scalable Comprehensive range of banking products across all businesses infrastructure Modern systems and infrastructure to support growth- Finacle, FinnOne, CMS, Internet and Mobile banking
Traditional loyal Traditional sticky customer base helped by presence of branch network in select areas of Maharashtra, Gujarat & AP customer base Provides DCB access to low cost deposits
Continued focus on Continued focus on building a low cost deposit franchise with strong capital position building low cost CASA of 34.6% and CRAR of 13.6% under Basel II (as on September 30, 2010) franchise
Steady improvement Rating agencies have upgraded the rating guidelines for DCB in credit ratings Crisil rating (Long term): BBB + / Stable, Crisil rating (Short term): P1 and Fitch rating: BBB / Stable
Robust Promoter DCB’s promoter, Aga Khan Fund for Economic Development (AKFED) http://www.akdn.org/akfed is present in 16 countries background employing over 30,000 people Promoter group holds 23.09% stake in DCB ( as on September 30, 2010)
Pedigreed board and Nasser Munjee, Chairman: Ex- Executive Director – HDFC, instrumental in setting up IDFC & sits on the boards of many large experienced Indian companies Management team Murali M. Natrajan, MD & CEO: worked in Standard Chartered Bank (Global Head – SME Banking), Citibank, American Express; strong Retail & SME experience in India & abroad
© Copyright IBM Corporation 2008 4 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 Co- Reserve Bank of Secured Foreign Bank” by the RBI operative Bank into India Exchange License Development Co- & became an operative Bank Ltd. Authorized Dealer
Tier I Capital Raising
2005 2006 2006 2007 2009 Private Equity Private Equity Raised INR 1.86 bn Preferential Raised INR 810 mn Investment by investment of INR through IPO, issue Allotment of INR through QIP in AKFED (Principal 519.9 mn by HDFC oversubscribed 2.8 bn in Aug 2007 November 2009 Promoter) of INR and Khattar 35 times to Al Bateen, TATA subscribed by life 1.38 bn in March Holdings and Capital, DCB insurance others in 2005 Investments (SVG companies, mutual February 2006 Capital) and others funds and FIIs
© Copyright IBM Corporation 2008 5 Robust Promoter Background and Strong Investor Profile
Shareholding Pattern (September 30, 2010)
Key institutional shareholders Al Bateen Investment Co LLC: 3.69% Promoter and Promoter Group Tata Capital Ltd: 3.29% 23.09% Institutions DCB Investments Ltd. (SVG Capital): 2.65% 9.84% Others (Non- HDFC Ltd: 2.02% Bodies Corporate Institutions)* 16.95% 13.65% Sundaram BNP Paribas Mutual Fund: 1.70% Birla Sunlife Life Insurance Co Ltd: 1.65% Shareholding Pattern Individuals Khattar Holdings Pvt. Ltd: 1.50% 36.47% ICICI Prudential Life Insurance Co Ltd: 1.42% Edelweiss Securities Ltd: 1.03% *Includes Clearing Members (4.47%), Foreign Nationals, Non Resident Indians (1.32%), Foreign corporate bodies (7.84%), Directors their relatives and friends
DCB is promoted by the Aga Khan Fund for Economic Development (AKFED) http://www.akdn.org/akfed AKFED is an international development enterprise. It is dedicated to promoting entrepreneurship and building economically sound companies Aga Khan Fund for Economic Development AKFED operates as a network of affiliates with more than 90 separate project companies employing over 30,000 people. The Fund is active in 16 countries in the developing world Principal Promoter
Note: Numbers are rounded off upto two decimal places © Copyright IBM Corporation 2008 6 Experienced Board
Nasser Munjee Murali M. Natrajan Non- Executive Chairman Managing Director & CEO
Ex- Executive Director – HDFC, Standard Chartered Bank, Citibank, instrumental in setting up IDFC. Sits on 15 American Express – *27 yrs exp. corporate Boards in India including HDFC, Tata Motors etc
Sukh Dev Nayyar Amir Sabuwala
Associated with ANZ Grindlays Bank plc Specializes in Small Scale Industries. Set for over 30 yrs. Last assignment with Grindlays as Head - Corporate Banking & up several small-scale industries over the Investment Banking, India past 32 years which include - Premier
Independent Director on the boards of Chemicals, Asian Industries, Life Diamond Trust Bank Kenya and Greaves Technologies, etc Cotton
Suhail Nathani Board of Directors Darius Udwadia
Founder Partner of Economic Laws Solicitor & Advocate of the Bombay High Practice, a law firm. Serves as an Court and Solicitor of the Supreme Court Independent Director on the Board of of England and Wales. Founder Partner of Phoenix Mills, India Advisory Board of Udwadia & Udeshi. Independent Director Duke University etc. on the Boards of several corporate entities
Shabir Kassam Narayan Seshadri
Certified Public Accountant from Australia Specialization in the field of agriculture, and a Fellow of the Association of SSI & Rural economy. Corporate Chartered Accountants, United Kingdom. consultant and is on the Board of a Banking consultant for the last eight years number of companies
Rajab Momin Nasim Devji
Bachelor of Commerce and Fellow of Fellow of the Institute of Chartered Institute of Chartered Accountants of India. Accountants of England & Wales (FCA). Experience in the field of accounting and Currently working as Managing Director of audit. On the board of number of Diamond Trust Bank Kenya & Group CEO companies of Diamond Trust Banks in East Africa 7 * Worked in India & Abroad © Copyright IBM Corporation 2008 Strong Management Team
Bharat Sampat Murali M. Natrajan Praveen Kutty Chief Financial Officer Managing Director & CEO Head- Retail, SME Banking ABN Amro Bank, Standard Chartered Citibank – *19 yrs exp. Bank, ANZ Banking Group, Hoechst Standard Chartered Bank, Citibank, India – *25 yrs exp. American Express – *27 yrs exp.
R. Venkattesh Anoop Prabhakar Head - HR, IT & Operations Head - Corporate Banking Standard Chartered Bank, ANZ State Bank of India – * 33 yrs exp. Grindlays Bank, Hindustan Petroleum – 20 yrs exp.
Rajesh Verma J. K Vishwanath Chief Credit Officer Head - Treasury Management Fullerton India, Citigroup and Eicher State Bank of India – *31 yrs exp. Group – 17 yrs exp.
Abhijit Bose Sridhar Seshadri Head – Retail Assets Financial Controller Standard Chartered Bank, Citibank, ICICI Bank, Syndicate Bank and State Eldeco Housing Industries and GIC Bank of India – *28yrs exp. Housing – *18 yrs exp.
Gaurav Mehta Ravi Kumar Head – Marketing, Corporate Sachin Patange Chief Internal Auditor Communication & Public Relations Chief Compliance Officer Samba Financial Group, Ernst & Young HSBC India, Convergys, GE Capital and Reserve Bank of India – 20 yrs exp. – *13 yrs exp. Taj Group of Hotels – 15 yrs exp.
Manoj Joshi Hemant Barve Narendranath Mishra Business Head – SME Company Secretary Head - AMRB ICICI Bank, Epcos Ferrites and Ritchie Steuart Investments and Union ICICI Bank and Rallis India – 11 yrs Uniworth Group – 15 yrs exp. Bank of India – 36 yrs exp. exp.
8 * Worked in India & Abroad © Copyright IBM Corporation 2008 80 Branches, Strong Presence in the Western Region
Geographic Footprint *
GOA ANDHRA PRADESH Mapusa (1) Hyderabad (8) Margao (1) Warangal (2) Panaji (1) Vasco -Da-Gama (1) HARYANA Gurgoan (1) GUJARAT Ahmedabad (4) KARNATAKA Ankleshwar (1) Bengaluru (4) Bhuj (1) Daman (1) NEW DELHI Dediapada (1) Chandni Chowk (1) Gandhinagar (1) Connaught Place (1) Rajkot (1) Greater Kailash II (1) Sidhpur (1) Kapashera Road (1) Silvassa (1) Kondli (1) Surat (1) Preet Vihar (1) Vapi (1) RAJASTHAN MAHARASHTRA Jodhpur (1) Aurangabad (1) Mumbai & Its TAMIL NADU Suburbs (28) Chennai (2) Branches 80 Nanded (1) DCB ATMs 113 Nashik (1) WEST BENGAL Pune (4) Kolkata (3) **Network 35,000 +
* Branch locations as shown on the map are approximate may not represent the exact location ** Tie up with Euronet enables DCB customers to access VISA ATMs across the world
July-10:DCB received permission from RBI to open 2 new Rural/Semi-Urban branches at Netrang (Bharuch Distt.) & Mandvi (Surat Distt.) in Gujarat
© Copyright IBM Corporation 2008 9 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 Working Capital Internet Banking Corporate Salary Equipment* Term Loans POS Terminals Gold Loans Supply Chain Lockers Home Loans Portfolio Buyout Loan Against Property Import /Export Cards: Loan Against Shares ATM Card Debit Card Wealth Management: Bills Collection Travel Card*** Investment Advice Foreign Exchange Secured Card*** Mutual Funds Letters of Credit Gift Card*** Life Insurance and Guarantees Credit Card* General Insurance
Payments: Services: Treasury, NBFCs, Co-operative Banks Remittances 24/7 Phone Banking Bill / Utility Payments Any Branch Banking RTGS / NEFT Statutory Reserves Management On-line Share Privilege Banking Liquidity Management Trading/Demat Trading in Government Securities Tax Payments Internet and Mobile Banking Foreign Exchange Corporate Bonds CDs Equity Investment
DCB offers a comprehensive range of products and services
*Offered to existing customers only ** DCB has tie up with HDFC Bank and Axis Bank to provide customers with cash management facilities at over 500 locations across india *** Launched on trial basis © Copyright IBM Corporation 2008 10 Contents
Development Credit Bank - Overview
Recent Events
Business Strategy & Financials
Annexure
© Copyright IBM Corporation 2008 11 Recent Events
Key challenges since mid 2008 Strategic initiatives / Actions
Substantial reduction in unsecured personal Increase in NPAs and provisions mainly on loans, CV and CE portfolio account of unsecured personal loans, commercial vehicle, construction equipment Stabilization of NPAs through intensive and a few corporate loans collections and recovery efforts. Coverage ratio of 79.64% as on September 30, 2010 Decrease in size of balance sheet negatively impacting core income Reduction in cost base
Cost structure created to support accelerated Implementation of new business strategy retail loans growth resulting in steady balance sheet growth
Rating downgrades impacting borrowing Launch of new deposit products
Top heavy organization Increase in CASA and retail term deposits to lower cost of funds and improve NIMs Dependence on bulk deposits Rating upgrades
Strengthening of Credit, Operations and Internal Audit
Leaner organization structure, improvement in staff morale and retention
Raising of Tier I (INR 810 mn) and Tier II (INR 650 mn) capital in FY10 to support growth in advances
© Copyright IBM Corporation 2008 12 Ratings
Feb 28, 2009 Jul 31, 2009 Sep 30, 2010
CRISIL
- Long Term - BBB/ Stable BBB +/Stable
- Short Term P1 P1 P1
FITCH BBB/ Negative BBB/ Negative BBB/ Stable
Brickworks - BWR A-/Stable BWR A-/Stable
© Copyright IBM Corporation 2008 13 Contents
Development Credit Bank – Overview
Recent Events
Business Strategy & Financials
Annexure
© Copyright IBM Corporation 2008 14 Business Strategy
Grow Retail, micro SME, SME, mid- Corporate and Agri / Microfinance with a “customer centric approach”. Concentrate on secured lending & diversified portfolio
Retail – branch centric Low cost deposits (CASA / Term) Secured lending (Home loans, Loan against property, Loan Against Term Deposit (LATD) Micro SME Traditional customer base Third party fee income
Treasury – Liquidity management, opportunity for gains within acceptable risks
Relentless focus on Costs / Income Ratio and Service
Stringent mechanism for managing Credit and Operational risks
Continuously improve people quality and delivery
© Copyright IBM Corporation 2008 15 Target
Calibrated growth, diversified portfolio with emphasis on secured lending
Focus on retail deposits to lower funding cost
Approach Enhance fee income
“Income before costs”
Discipline in execution (strategy / credit / operations / costs)
Increase balance sheet size
Goal Improve cost / Income ratio
Improve ROA and ROE
© Copyright IBM Corporation 2008 16 Calibrated Growth in Balance Sheet
Total Assets INR mn
75,775 59,430 57,991 55,907 57,021 61,367 63,733 69,376
Mar 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010
Net Advances* INR mn
40,688 32,740 31,048 29,631 31,392 34,597 34,786 38,398
Mar 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010
Note: Financial numbers are rounded off to nearest whole number * Net Advances – Gross advances less (net of) provisions © Copyright IBM Corporation 2008 17 Building Stable Low Cost Funding Base
Deposits INRINR mn mn
60,749 54,951 4,271 51,152 47,873 1,652 46,469 45,714 45,025 44,824 1,510 1,590 3,957 2,422 2,093 1,047
29,356 31,220 34,301 41,735 28,101 27,980 26,365 26,680
18,422 18,998 14,743 14,411 15,312 16,567 17,097 16,927
Mar 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010
CASA Term Deposits Other Deposits INR mn
Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, 2008 2009 2009 2009 2009 2010 2010 2010
Retail Deposit/ Total Deposits 51.95% 67.53% 78.75% 82.56% 83.87% 81.54% 79.77% 78.65%
CASA Ratio 24.27% 31.01% 33.49% 36.80% 38.14% 35.36% 36.02% 34.57%
Access to low cost stable funding source to support advance growth without undue reliance on volatile wholesale funding
Note: Financial numbers are rounded off to nearest whole number © Copyright IBM Corporation 2008 18 Thrust on Low Cost Deposits through Branch Network
Retail CASA & Retail Term Deposits INR mn
40,802 43,219 37,592 39,034 35,999 37,175 31,557 31,380
23,056 23,830 25,694 17,673 18,132 21,653 21,737 21,594
15,978 13,884 13,248 14,346 15,438 15,998 16,972 17,525
Mar 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010
Retail CASA Retail Term Deposits
Retail Deposits / Branch INR mn
510 540 465 470 488 450 395 393
270 288 298 321 221 227 271 272
174 166 179 193 200 200 212 219
Mar 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010
Retail CASA / Branch Retail Term Deposits / Branch
Note: Financial numbers are rounded off to nearest whole number © Copyright IBM Corporation 2008 19 Increased Provisions with Adequate Coverage
Key Ratios
11.24% 93.99% 10.86% 11.05% 89.88% 82.50% 79.64% 76.66% 73.25% 70.04% 75.19% 8.78% 68.93% 66.20% 64.37% 63.42% 61.28% 8.69% 8.47% 53.34% 52.81% 48.40% 7.61%
4.96% 4.67% 3.88% 4.35% 1.49% 3.11% 2.53% 1.86% 0.66% Mar 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010
Coverage Ratio - Bank Coverage Ratio - PL Gross NPA% Net NPA%
Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, INR mn 2008 2009 2009 2009 2009 2010 2010 2010 Personal Loans 338 1,326 1,641 1,665 1,715 1,694 1,659 1,617
CV/CE/STVL* 71 533 592 620 640 599 584 540
Corporate 162 988 1,150 1,065 1,064 594 590 654
Others 63 209 257 226 311 305 307 296
Gross NPA 634 3,056 3,640 3,576 3,730 3,192 3,140 3,107
Net NPA** 270 1,270 1,540 1,385 1,364 1,076 878 714
Note: Financial numbers are rounded off to nearest whole number / Net NPAs are net of provisions * CV / CE / STVL represents Commercial Vehicle, Construction Equipment and Small Ticket Vehicle Loan ** Net NPA = Gross NPA – (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense 20 account + total provisions held) © Copyright IBM Corporation 2008 Calibrated Growth with Focus on Select Areas
Variance INR mn Mar 31, 2009 Mar 31, 2010 Sep 30, 2010 H2 vs. H1
CASA 14,411 16,927 18,998 2,070
Retail Term Deposits 18,132 23,056 25,694 2,638
Mortgages - sourced by 2,120 2,939 4,622 1,683 DCB
Mortgages - acquired 506 1,179 4,562 3,383
SME + Micro SME 4,483 6,004 7,362 1,358
Agri / Microfinance & Rural 5,710 8,583 5,588 (2,995) Banking
Corporate Banking 9,327 11,095 12,866 1,771
Note: Financial numbers are rounded off to nearest whole number © Copyright IBM Corporation 2008 21 Diversified Portfolio
Portfolio* as on Mar 31, 2009 Portfolio* as on Mar 31, 2010
Retail Banking - 40% Retail Banking - 26%
Mortgages Mortgages Others 8% CV/CE/STVL 12% CV/CE/STVL Personal Loans 5% 17% Others 8% 3% SME+MSME 3% 14% Personal Loans SME+MSME AMRB 10% 17% 25%
AMRB Corporate Banking 17% Corporate Banking 29% 32%
PortfolioPortfolio* Mix asas on on Sep September 30, 2010 30, 2010
Retail Banking - 33%
Mortgages CV/CE/STVL Personal Loans 24% 5% 1% AMRB 14%
Others 3% SME+MSME Corporate Banking 19% 34%
Note: Financial numbers are rounded off to nearest whole number * AMRB – Agri / Microfinance / Rural, MSME – Micro SME, CV / CE / STVL – Commercial Vehicle, Corporate Equipment and Small Ticket Vehicle Loan © Copyright IBM Corporation 2008 22 Focus on Cost Management
Operating Income INR mn
3,487 3,173
2,491 1,861 1,972 1,420
656 672 732 733 1,626 581 583 1,201 1,071 354 314 326 426 433 464 227 342 257 246 299 269 FY08 FY09 FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 F Y11
Other Income Net Interest Income
Operating Cost INR mn
90.18% 86.63% 2,420 80.62% 2,391 76.20% 76.27% 2,008 71.59% 97168.56% 1,044 71.46% 69.13% 881
1,420 1,376 523 500 505 480 506 525 1,127 239 229 221 192 248 250 284 271 284 288 258 275 FY08 FY09 FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 F Y11
Operating Cost Staff Cost Cost Income Ratio
Note: Financial numbers are rounded off to nearest whole number © Copyright IBM Corporation 2008 23 Improvement in Operating Performance
Operating Profit INR mn
1,096
753 483
156 192 226 208 57 78 FY08 FY09 FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 F Y11
Provisions INR mn
1,634 1,268
713 410 325 274 259 255 160 FY08 FY09 FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 F Y11
Note: Financial numbers are rounded off to nearest whole number * Provisions include provisions for NPAs, standard assets, income tax, fringe benefit tax, other assets, restructured advances etc Provisions also includes depreciation on investments and sacrifice of one time settlement © Copyright IBM Corporation 2008 24 Bottom Line Improvement
Net Profit / Loss * INR mn
19
383
48
(29) (82) (169) (181) (353)
(785) (881) FY08 FY09 FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 F Y11
Note: Financial numbers are rounded off to nearest whole number * Net Profit / (loss) represents post tax numbers © Copyright IBM Corporation 2008 25 NIM, Yield on Advances and Cost of Funds
Net Interest Margin INR mn
3.27% 3.03% 3.12% 3.14% 2.86% 2.78% 2.79% 2.61% 2.50%
FY08 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 FY10 Q1 FY11 Q2 F Y11
Yield on Advances & Cost of Funds
13.58% 13.05% 13.32% 12.33% 12.50% 12.04% 11.70% 11.21% 10.95%
7.27% 7.51% 7.18% 6.58% 6.35% 6.44% 5.65% 5.63% 5.58%
FY08 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 FY10 Q1 FY11 Q2 F Y11
Yield on Advances Cost of Funds
Note: Financial numbers are rounded off to nearest whole number © Copyright IBM Corporation 2008 26 Other Income
INR mn FY08 FY09 FY10 Q1FY11 Q2FY11
Commission, exchange and brokerage 845 768 664 156 175
Sale of investments 15 20 178 86 36
Sale of land, buildings and other assets 102 47 (3) (2) (2)
Exchange transactions 229 224 64 19 29
Lease income 7 - 9 - -
Miscellaneous income 428 142` 159 40 31
Total 1,626 1,201 1,071 299 269
Note: Financial numbers are rounded off to nearest whole number © Copyright IBM Corporation 2008 27 Treasury
INR mn Mar 31, 2009 Mar 31, 2010 Sep 30, 2010
SLR 12,675 15,789 16,639
Non-SLR 3,542 4,390 4,336
Total Investments * 16,217 20,179 20,975
HTM 10,808 16,890 18,542
AFS 4,630 3,263 2,178
HFT 779 26 255
Total Investments * 16,217 20,179 20,975
Note: Financial numbers are rounded off to nearest whole number * Represents Net investments (HTM – Held To Maturity, AFS – Available For Sale, Held For Trading) © Copyright IBM Corporation 2008 28 Capital Adequacy Ratios
Capital Adequacy Ratios
Basel II
14.85% 14.85% 14.85% 13.80% 13.57% 13.30% 13.22% 3.20% 2.89% 2.92% 1.80% 1.79% 2.40% 2.31%
11.40% 11.50% 11.43% 11.65% 11.96% 11.93% 11.26%
Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010
Tier I Tier II
Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, 2009 2009 2009 2009 2010 2010 2010
Basel II 13.30% 13.22% 14.85% 14.85% 14.85% 13.80% 13.57%
DCB has following approvals for raising capital in the future: Tier I – QIP not exceeding INR 1,500 mn Tier I – Rights not exceeding INR 2,000 mn
Note: Financial numbers are rounded off to nearest whole number © Copyright IBM Corporation 2008 29 Contents
Development Credit Bank – Overview
Recent Events
Business Strategy & Financials
Annexure
© Copyright IBM Corporation 2008 30 Balance Sheet
Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, INR mn 2009 2009 2009 2009 2010 2010 2010
Shareholder’s Equity 5,957 5,633 5,469 6,073 5,990 5,960 6,003
Deposits 46,469 45,714 45,025 44,824 47,873 51,152 54,951
Borrowings 1 3,455 3,264 1,488 2,108 5,035 3,840 5,648
Other Liabilities & Provisions 1 3,523 3,352 3,898 3,997 2,447 2,754 2,747
Cash, Inter-bank, etc 6,534 3,939 3,703 5,113 3,324 5,647 6,177
Investments 16,217 19,287 19,087 17,011 20,179 20,057 20,975
Advances 32,740 31,048 29,631 31,392 34,597 34,786 38,398
Fixed Assets 1,489 1,457 1,418 1,378 1,358 1,326 1,308
Other Assets 2,450 2,260 2,068 2,127 1,909 1,918 2,518
Credit Deposit Ratio 70.46% 67.92% 65.81% 70.03% 72.27% 68.00% 69.88%
Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, INR mn 2009 2009 2009 2009 2010 2010 2010 CASA 14,411 15,312 16,567 17,097 16,927 18,422 18,998
Other Deposits 32,058 30,402 28,458 27,727 30,946 32,730 35,953
Total Deposits 46,469 45,714 45,025 44,824 47,873 51,152 54,951
CASA Ratio 31.01% 33.49% 36.80% 38.14% 35.36% 36.02% 34.57%
Note: Financial numbers are rounded off to nearest whole number 1 : Subordinated debt included in borrowings since March 31, 2010 as per RBI guidelines, same included in other liabilities and provisions in earlier periods© Copyright IBM Corporation 2008 31 Profit & Loss
INR mn FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 FY10 Q1FY11 Q2FY11
Net Interest Income 1,972 354 314 326 426 1,420 433 464
Other Income 1,201 227 342 257 246 1,071 299 269
Operating Income 3,173 581 656 583 672 2,491 732 733
Operating Expenses (2,420) (523) (500) (505) (480) (2,008) (506) (525)
Operating Profit 753 57 156 78 192 483 226 208
Total Provisions (1,634) (410) (325) (259) (274) (1,268) (255) (160)
PAT (881) (353) (169) (181) (82) (785) (29) 48
Cost Income Ratio 76.27% 90.18% 76.20% 86.63% 71.46% 80.62% 69.13% 71.59%
Note: Financial numbers are rounded off to nearest whole number © Copyright IBM Corporation 2008 32 Thank you
© Copyright IBM Corporation 2008 33