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Investor Presentation Q4 FY 2011 April 2011 Private & - - PowerPoint PPT Presentation

Investor Presentation Q4 FY 2011 April 2011 Private & Confidential Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being


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Private & Confidential

Investor Presentation – Q4 FY 2011

April 2011

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Disclaimer

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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 offer or invitation, directly or indirectly, to buy or sell any securities, nor shall part, or all, of this presentation form the basis of or be relied on in connection with, any contract or investment decision in relation to any securities. This presentation is not an offer document or a prospectus under the Companies Act, 1956, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended and any other applicable law. 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

  • ther 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. This presentation is not an offer of securities for sale in the United States or in any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. No shares or other securities may be offered or sold other than in compliance with the laws of relevant jurisdictions, including the United States Securities Act of 1933, as amended. By viewing this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Bank and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Bank. Except as otherwise noted, all of the information contained herein is preliminary and indicative and is based on management information, current plans and estimates. Industry and market-related information is obtained or derived from industry publications and has not been verified by us. The information contained in this presentation, except as otherwise noted, is only current as of the date of the presentation, is subject to change without

  • notice. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without any obligation to notify any person
  • f such revision or changes. Persons relying on the information in this presentation should do so at their own risk and the Bank shall not be

responsible for any kind of consequences or liability to any person arising out of, relying and acting upon any such information.

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Contents

Recent Events Development Credit Bank – Overview Business Strategy & Financials Annexure

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DCB – Overview

DCB – at a glance Comprehensive product range & scalable infrastructure Traditional loyal customer base Continued focus on building low cost franchise Pedigreed board and experienced Management team

  • 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 134 ATMs (as on March 31, 2011)

Steady improvement in credit ratings

  • Business model focused on achieving a balance between Retail Mortgages, Micro SME(MSME), SME, Agri/Microfinance and

mid-Corporate

  • Comprehensive range of banking products across all businesses
  • Modern systems and infrastructure to support growth- Finacle, FinnOne, CMS, Internet and Mobile banking
  • Traditional sticky customer base helped by presence of branch network in select areas of Maharashtra, Gujarat & AP
  • Provides DCB access to low cost deposits
  • Continued focus on building a low cost deposit franchise with strong capital position
  • CASA of 35.2% and CRAR of 13.25% under Basel II (as on March 31, 2011)
  • Rating agencies have upgraded the rating guidelines for DCB
  • Crisil rating (Long term): BBB + / Stable, Crisil rating (Short term): P1 and Fitch rating: BBB / Stable
  • Nasser Munjee, Chairman: Ex- Executive Director – HDFC, instrumental in setting up IDFC & sits on the boards of many large

Indian companies

  • Murali M. Natrajan, MD & CEO: worked in Standard Chartered Bank (Global Head – SME Banking), Citibank, American

Express; strong Retail Banking & SME experience in India & abroad

Robust Promoter background

  • DCB’s promoter, Aga Khan Fund for Economic Development (AKFED) http://www.akdn.org/akfed is present in 16 countries

employing over 30,000 people

  • Promoter group holds 23.08% stake in DCB ( as on March 31, 2011)
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Key Milestones

In Existence Since 1930s

1981

Amalgamation of

Masalawala Co-

  • perative Bank and

Ismailia Co-

  • perative Bank into

Development Co-

  • perative Bank Ltd.

1984

Multi-State Co-

  • perative Bank

1995

Conversion to

Development Credit Bank Ltd.

Secured Foreign

Exchange License & became an Authorized Dealer 1988

Acquired

“Scheduled” status from Reserve Bank of India 2004

Classified as a

“New Generation Private Sector Bank” by the RBI 2006

IPO

Tier I Capital Raising

2006

Private Equity

investment of INR 519.9 mn by HDFC and Khattar Holdings and

  • thers in

February 2006 2006

Raised INR 1.86 bn

through IPO, issue

  • versubscribed

35 times 2009

Raised INR 810 mn

through QIP in November 2009 subscribed by life insurance companies, mutual funds and FIIs 2005

Private Equity

Investment by AKFED (Principal Promoter) of INR 1.38 bn in March 2005 2007

Preferential

Allotment of INR 2.8 bn in Aug 2007 to Al Bateen, TATA Capital, DCB Investments (SVG Capital) and others

5

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Aga Khan Fund for Economic Development

Principal Promoter

Robust Promoter Background and Strong Investor Profile

Key non-promoter shareholders

  • Al Bateen Investment Co. LLC: 3.69%
  • Tata Capital Ltd.: 3.29%
  • DCB Investments Ltd. (SVG Capital): 2.65%
  • The India Fund, Inc.: 2.17%
  • HDFC Ltd.: 2.02%
  • Satpal Khattar: 1.62%
  • Sundaram BNP Paribas Mutual Fund: 1.47%
  • Girdharilal Lakhi: 1.26%
  • Macquarie Bank Ltd.: 1.13%

Shareholding Pattern

Shareholding Pattern (March 31, 2011)

  • 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

  • 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

*Includes Clearing Members (1.53%), Non Resident Indians (2.95%), Foreign Corporate Bodies (6.34%), Directors and their relatives (0.02%)

Note: Numbers are rounded off upto two decimal places

Bodies Corporate 15.20% Individuals 40.68% Others (Non- Institutions)* 10.84% Institutions 10.20% Promoter and Promoter Group 23.08%

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Sukh Dev Nayyar

  • Associated with ANZ Grindlays Bank plc

for over 30 yrs. Last assignment with Grindlays as Head - Corporate Banking & Investment Banking, India

  • Independent Director on the boards of

Diamond Trust Bank Kenya and Greaves Cotton Nasim Devji

  • Fellow of the Institute of Chartered

Accountants of England & Wales (FCA). Currently working as Managing Director of Diamond Trust Bank Kenya & Group CEO

  • f Diamond Trust Banks in East Africa

Suhail Nathani

  • Founder Partner of Economic Laws

Practice, a law firm. Serves as an Independent Director on the Board of Phoenix Mills, India Advisory Board of Duke University etc. Nasser Munjee Non- Executive Chairman

  • Ex- Executive Director – HDFC,

instrumental in setting up IDFC. Sits on 15 corporate Boards in India including HDFC, Tata Motors etc Amir Sabuwala

  • Specializes in Small Scale Industries. Set

up several small-scale industries over the past 32 years which include - Premier Chemicals, Asian Industries, Life Technologies, etc Darius Udwadia

  • Solicitor & Advocate of the Bombay High

Court and Solicitor of the Supreme Court

  • f England and Wales. Founder Partner of

Udwadia & Udeshi. Independent Director

  • n the Boards of several corporate entities

Shabir Kassam

  • Certified Public Accountant from Australia

and a Fellow of the Association of Chartered Accountants, United Kingdom. Banking consultant for the last eight years Rajab Momin

  • Bachelor of Commerce and Fellow of

Institute of Chartered Accountants of India. Experience in the field of accounting and audit Narayan Seshadri

  • Specialization in the field of agriculture,

SSI & Rural economy. Corporate consultant and is on the Board of a number of companies

Experienced Board

Board of Directors

Murali M. Natrajan Managing Director & CEO

  • Standard Chartered Bank, Citibank,

American Express – *27 yrs exp.

* Worked in India & Abroad

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Gaurav Mehta Head – Marketing, Corporate Communication & Public Relations HSBC India, Convergys, GE Capital and Taj Group of Hotels – 15 yrs exp.

Strong Management Team

Murali M. Natrajan Managing Director & CEO Standard Chartered Bank, Citibank, American Express – *27 yrs exp. Praveen Kutty Head - Retail, SME Banking Citibank – *19 yrs exp. Rajesh Verma Head - Treasury

State Bank of India – *31 yrs exp.

* Worked in India & Abroad

Bharat Sampat Chief Financial Officer ABN Amro Bank, Standard Chartered Bank, ANZ Banking Group, Hoechst India – *25 yrs exp.

  • R. Venkattesh

Head - HR, IT & Operations Standard Chartered Bank, ANZ Grindlays Bank, Hindustan Petroleum – 20 yrs exp. Abhijit Bose Head – Retail Assets Standard Chartered Bank, Citibank, Eldeco Housing Industries and GIC Housing – *18 yrs exp. Ravi Kumar Chief Internal Auditor Samba Financial Group, Ernst & Young – *13 yrs exp. Manoj Joshi Business Head – SME ICICI Bank, Epcos Ferrites and Uniworth Group – 15 yrs exp. Anoop Prabhakar Head - Corporate Banking State Bank of India – * 33 yrs exp. Narendranath Mishra Head - AMRB ICICI Bank and Rallis India – 11 yrs exp.

  • J. K Vishwanath

Chief Credit Officer Fullerton India, Citigroup and Eicher Group – 17 yrs exp. Sachin Patange Chief Compliance Officer Reserve Bank of India – 20 yrs exp. Hemant Barve Company Secretary Ritchie Steuart Investments and Union Bank of India – 36 yrs exp.

Management

Sridhar Seshadri Financial Controller ICICI Bank, Syndicate Bank and State Bank of India – 28yrs exp.

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80 Branches, Strong Presence in the Western Region

* 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

Branches 80 DCB ATMs 134 **Network 35,000 + GOA

  • Mapusa (1)
  • Margao (1)
  • Panaji (1)
  • Vasco -Da-Gama (1)

GUJARAT

  • Ahmedabad (3)
  • Ankleshwar (1)
  • Bhuj (1)
  • Daman (1)
  • Dediapada (1)
  • Gandhinagar (1)
  • Rajkot (1)
  • Sidhpur (1)
  • Silvassa (1)
  • Surat (1)
  • Vadodara (1)
  • Vapi (1)

MAHARASHTRA

  • Aurangabad (1)
  • Mumbai & Its

Suburbs (28)

  • Nanded (1)
  • Nashik (1)
  • Pune (4)

ANDHRA PRADESH

  • Hyderabad (8)
  • Warangal (2)

HARYANA

  • Gurgaon (1)

KARNATAKA

  • Bengaluru (4)

NEW DELHI

  • Chandni Chowk (1)
  • Connaught Place (1)
  • Greater Kailash II (1)
  • Kapashera Road (1)
  • Kondli (1)
  • Preet Vihar (1)

RAJASTHAN

  • Jodhpur (1)

TAMIL NADU

  • Chennai (2)

WEST BENGAL

  • Kolkata (3)

July-10:DCB received permission from RBI to open 2 new Rural/Semi-Urban branches at Netrang (Bharuch Distt.) & Mandvi (Surat Distt.) in Gujarat

Geographic Footprint *

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Products & Services

Retail Banking

Deposit Products:

  • Current and Savings
  • Term Deposits
  • NRI Deposits
  • Corporate Salary
  • POS Terminals
  • Lockers

Cards:

  • ATM Card
  • Debit Card
  • Travel Card***
  • Secured Card***
  • Gift Card***
  • Credit Card*

Payments:

  • Remittances
  • Bill / Utility Payments
  • RTGS / NEFT
  • On-line Share

Trading/Demat

  • Tax Payments

Loans:

  • Auto Loans*
  • Commercial Vehicle*
  • Construction

Equipment*

  • Gold Loans
  • Home Loans
  • Loan Against Property
  • Loan Against Shares

Wealth Management:

  • Investment Advice
  • Mutual Funds
  • Life Insurance and

General Insurance Services:

  • 24/7 Phone Banking
  • Any Branch Banking

Privilege Banking Internet and Mobile Banking

SME, Corporate Banking, NBFCs, Co-operative Banks

  • Current Account
  • Trade Current Account
  • Working Capital
  • Term Loans
  • Supply Chain
  • Portfolio Buyout
  • Import /Export
  • Bills Collection
  • Foreign Exchange
  • Letters of Credit
  • Guarantees
  • Statutory Reserves Management
  • Liquidity Management
  • Trading in Government Securities
  • Foreign Exchange
  • Corporate Bonds
  • CDs
  • Equity Investment

Treasury, NBFCs, Co-operative Banks

  • Cash Management**
  • RTGS /NEFT
  • Internet Banking

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

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Contents

Recent Events Development Credit Bank - Overview Business Strategy & Financials Annexure

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Recent Events

Key challenges since mid 2008

  • Increase in NPAs and provisions mainly on

account of unsecured personal loans, commercial vehicle, construction equipment and a few corporate loans

  • Decrease in size of balance sheet negatively

impacting core income

  • Cost structure created to support accelerated

retail loans growth

  • Rating downgrades impacting borrowing
  • Top heavy organization
  • Dependence on bulk deposits

Strategic initiatives / Actions

  • Substantial reduction in unsecured personal

loans, CV and CE portfolio

  • Stabilization of NPAs through intensive

collections and recovery efforts. Coverage ratio of 87.64% as on March 31, 2011

  • Reduction in cost base
  • Implementation of new business strategy

resulting in steady balance sheet growth

  • Launch of new deposit products
  • Increase in CASA and retail term deposits to

lower cost of funds and improve NIMs

  • 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

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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

Ratings

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Contents

Recent Events Development Credit Bank – Overview Business Strategy & Financials Annexure

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Business Strategy Grow Retail Mortgages, micro SME, SME, mid- Corporate and Agri & Inclusive

Banking with a “customer centric approach”. Concentrate on secured lending & diversified portfolio

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

  • Retail – branch centric

Low cost deposits (CASA / Term) Secured lending (Home loans, Loan against property, Loan Against Term

Deposit)

Micro SME Traditional customer base Third party fee income

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Target

Improve ROA and ROE Increase balance sheet size Improve cost / Income ratio

Goal

Calibrated growth, diversified portfolio with emphasis on secured lending Focus on retail deposits to lower funding cost “Income before costs” Discipline in execution (strategy / credit / operations / costs)

Approach

Enhance fee income

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57,991 55,907 57,021 73,723 69,889 61,367 59,430 75,775 63,733 69,377 M ar 31, 2008 M ar 31, 2009 Jun 30, 2009 Sep 30, 2009 D ec 31, 2009 M ar 31, 2010 Jun 30, 2010 Sep 30, 2010 D ec 31, 2010 M ar 31, 2011 31 ,048 29,631 42,715 39,557 38,398 34,786 31 ,392 40,688 32,740 34,597 M ar 31, 2008 M ar 31 , 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 M ar 31, 2010 Jun 30, 2010 Sep 30, 201 Dec 31 , 2010 M ar 31, 2011 17

Calibrated Growth in Balance Sheet

Total Assets

INR mn

* Net Advances – Gross advances less (net of) provisions Note: Financial numbers are rounded off to nearest whole number

Net Advances*

INR mn

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14,743 15,312 16,567 17,097 18,422 18,998 18,704 19,755 27,980 26,680 36,002 16,927 14,411 33,746 34,301 31,220 29,356 26,365 41,735 28,101 2,601 1,799 3,957 4,271 2,422 2,093 1,590 1,510 1,652 1,047 M ar 31, 2008 M ar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 M ar 31, 2010 Jun 30, 2010 Sep 30, 2010 Dec 31 , 2010 M ar 31, 2011

C A SA T erm D epo sits Other D epo sits

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Building Stable Low Cost Funding Base

INR mn INR mn 33.10% 78.98% Dec 31, 2010 34.57% 78.65% Sep 30, 2010 35.21% 81.17% Mar 31, 2011 Mar 31, 2008 Mar 31, 2009 Mar 31, 2010 Jun 30, 2010 Retail Deposits/ Total Deposits 51.95% 67.53% 81.54% 79.77% CASA Ratio 24.27% 31.01% 35.36% 36.02%

Deposits

INR mn

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

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174 179 193 200 212 219 222 231 221 227 339 200 166 336 271 272 270 288 298 321 M ar 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010 Dec 31, 2010 Mar 31, 2011 Retail CASA / Branch Retail Term Deposits / Branch 13,884 14,346 15,438 15,998 16,972 17,525 17,763 18,455 17,673 18,132 15,978 13,248 27,085 26,863 25,694 23,830 23,056 21,594 21,737 21,653 M ar 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010 Dec 31, 2010 Mar 31, 2011 Retail CASA Retail Term Deposits

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Thrust on Low Cost Deposits through Branch Network

Retail CASA & Retail Term Deposits

INR mn

Note: Financial numbers are rounded off to nearest whole number

Retail Deposits / Branch

INR mn

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48.40% 52.81 % 61 .28% 63.42% 75.1 9% 79.64% 84.73% 87.64% 66.20% 64.37% 68.93% 73.25% 89.88% 93.99% 96.68% 1 00.00% 70.04% 53.34% 76.66% 82.50% 7.07% 5.86% 0.66% 1.30% 0.97% 8.78% 1.49% 1 0.86% 1 1 .24% 8.69% 8.47% 7.61% 1 1 .05% 1.86% 3.88% 4.96% 4.67% 4.35% 3.1 1% 2.53% M ar 31 , 2008 M ar 31 , 2009 Jun 30, 2009 Sep 30, 2009 Dec 31 , 2009 M ar 31 , 201 Jun 30, 2010 Sep 30, 2010 Dec 31, 201 M ar 31 , 2011 Coverage Ratio - Bank Coverage Ratio - PL Gross NPA% Net NPA% 20

Increased Provisions with Adequate Coverage

515 2,973 274 617 496 1,586 Dec 31, 2010 714 3,107 296 654 540 1,617 Sep 30, 2010 INR mn Mar 31, 2008 Mar 31, 2009 Mar 31, 2010 Jun 30, 2010 Mar 31, 2011 Personal Loans 338 1,326 1,694 1,659 1,293 CV/CE/STVL* 71 533 599 584 452 Corporate 162 988 594 590 588 Others 63 209 305 307 303 Gross NPA 634 3,056 3,192 3,140 2,636 Net NPA** 270 1,270 1,076 878 412

Key Ratios

* CV / CE / STVL represents Commercial Vehicle, Construction Equipment and Small Ticket Vehicle Loan Note: Financial numbers are rounded off to nearest whole number / Net NPAs are net of provisions ** Net NPA = Gross NPA – (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense account + total provisions held)

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9,327 5,710 4,483 2,626 18,132 14,411 Mar 31, 2009 INR mn Mar 31, 2008 Mar 31, 2010 Mar 31, 2011 CASA 14,743 16,927 19,755 Retail Term Deposits 17,502 23,056 27,085 Mortgages (sourced & acquired) 2,464 4,118 10,811 SME + Micro SME 1,673 6,004 10,219 Agri & Inclusive Banking 3,390 8,583 8,502 Corporate Banking 18,458 11,095 11,051

Calibrated Growth with Focus on Select Areas

Note: Financial numbers are rounded off to nearest whole number

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Diversified Portfolio

Retail Banking - 26% Retail Banking - 40% Retail Banking - 30%

* AIB – Agri & Inclusive Banking, MSME – Micro SME, CV / CE / STVL – Commercial Vehicle, Corporate Equipment and Small Ticket Vehicle Loan

Portfolio* as on Mar 31, 2009 Portfolio* as on Mar 31, 2010 Portfolio* as on Mar 31, 2011

Note: Financial numbers are rounded off to nearest whole number

Co rporate Banking 32% SM E+M SM E 17% Others 3% AIB 25% CV/CE/STVL 8% M ortgages 12% P erso nal Lo ans 3% SM E+M SM E 24% Others 3% A IB 20% C o rpo rate B anking 26% P erso nal Lo ans 0.2% M o rtgages 25% C V/ C E/ ST VL 2% C V/ C E/ ST VL 17% A IB 17% C o rpo rate B anking 29% SM E+M SM E 14% Others 5% P erso nal Lo ans 10% M o rtgages 8% C o rpo rate B anking 34% SM E+M SM E 19% Others 3% A IB 14% P erso nal Lo ans 1% M o rtgages 24% C V/ C E/ ST VL 5%

Portfolio* as on Sep 30, 2010

Retail Banking - 33%

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1,420 1,127 258 275 282 1,088 971 1,044 881 248 250 273 292 1,064 1,376 274 71.59%

71.43% 72.31%

72.59% 69.13% 80.62% 68.56% 76.27% FY08 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY 11 Q4 FY11 FY11 Operating Cost Staff Cost Cost Income Ratio 1,626 1,071 299 269 292 1,121 1,861 1,972 1,420 433 464 493 502 1,891 1,201 260 FY08 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY 11 Q4 FY11 FY11 Other Income Net Interest Income 23

Focus on Cost Management

Operating Cost

INR mn

Operating Income

INR mn

Note: Financial numbers are rounded off to nearest whole number

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1,096 753 483 226 208 206 220 860 FY08 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11 713 1,634 1,268 255 160 124 106 646 FY08 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11

24

Improvement in Operating Performance

Provisions

INR mn

Operating Profit

INR mn

* 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 Note: Financial numbers are rounded off to nearest whole number

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214 113 82 48 (29) (785) (881) 383 FY08 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11 25

Bottom Line Improvement

Net Profit / Loss *

INR mn

Note: Financial numbers are rounded off to nearest whole number * Net Profit / (loss) represents post tax numbers

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13.32% 13.58% 12.33% 11.21% 10.95% 11.26% 11.72% 11.12% 7.27% 7.51% 6.44% 5.63% 5.58% 5.82% 6.24% 5.83% FY08 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11 Yield on Advances Cost of Funds

26

NIM, Yield on Advances and Cost of Funds

Net Interest Margin

INR mn

Yield on Advances & Cost of Funds

Note: Financial numbers are rounded off to nearest whole number

3.13% 3.15% 3.13% 3.14% 3.12% 2.79% 2.86% 3.03% FY08 FY09 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 FY11

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Other Income

260 22

  • 17

(1) 57 165 Q3FY11 293 12

  • 25

16 74 166 Q4FY11 269 31

  • 29

(2) 36 175 Q2FY11 INR mn FY08 FY09 FY10 Q1FY11 FY11 Commission, exchange and brokerage 845 768 664 156 661 Sale of investments 15 20 178 86 253 Sale of land, buildings and

  • ther assets

102 47 (3) (2) 11 Exchange transactions 229 224 64 18 90 Lease income 7

  • 9
  • Miscellaneous income

428 142 159 41 106 Total 1,626 1,201 1,071 299 1,121

Note: Financial numbers are rounded off to nearest whole number

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Treasury

21,346 1,072 12,585 7,688 21,346 4,201 17,145 Mar 31, 2008 INR mn Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 SLR 12,675 15,789 17,512 Non-SLR 3,542 4,390 5,439 Total Investments * 16,217 20,179 22,951 HTM 10,808 16,890 18,847 AFS 4,630 3,263 3,029 HFT 779 26 1,075 Total Investments * 16,217 20,179 22,951

* Represents Net investments (HTM – Held To Maturity, AFS – Available For Sale, Held For Trading) Note: Financial numbers are rounded off to nearest whole number

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Capital Adequacy Ratios

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

Capital Adequacy Ratios – Basel II

Note: Financial numbers are rounded off to nearest whole number 11.50% 11.40% 11.26% 11.13% 1.80% 2.92% 2.40% 2.31% 2.26% 2.15% 11.10% 11.93% 13.30% 14.85% 13.80% 13.57% 13.39% 13.25% M ar 31, 2009 M ar 31, 2010 Jun 30, 2010 Sep 30, 2010 D ec 31, 2010 M ar 31, 2011 T ier I T ier II

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Contents

Recent Events Development Credit Bank – Overview Business Strategy & Financials Annexure

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Balance Sheet

24.27% 60,749 46,006 14,743

Mar 31, 2008

INR mn

Mar 31, 2009 Mar 31, 2010 Jun 30, 2010 Sep 30, 2010 Dec 31, 2010 Mar 31, 2011

CASA 14,411 16,927 18,422 18,998 18,704 19,755 Other Deposits 32,058 30,946 32,730 35,953 37,802 36,347 Total Deposits 46,469 47,873 51,152 54,951 56,506 56,102 CASA Ratio 31.01% 35.36% 36.02% 34.57% 33.10% 35.21% 66.98% 2,128 998 40,688 21,346 10,615 4,361 4,268 60,749 6,343

Mar 31, 2008

72.27% 1,909 1,358 34,597 20,179 3,324 2,447 5,035 47,873 5,990

Mar 31, 2010

68.00% 1,918 1,326 34,786 20,057 5,647 2,754 3,840 51,152 5,960

Jun 30, 2010

69.88% 2,518 1,308 38,398 20,975 6,177 2,747 5,648 54,951 6,003

Sep 30, 2010

70.00% 2,106 1,294 39,557 21,771 5,162 2,736 4,534 56,506 6,086

Dec 31, 2010

INR mn

Mar 31, 2009 Mar 31, 2011

Shareholder’s Equity 5,957 6,187 Deposits 46,469 56,102 Borrowings 1 3,455 8,607 Other Liabilities & Provisions 1 3,523 2,800 Cash, Inter-bank, etc 6,534 4,871 Investments 16,217 22,951 Advances 32,740 42,715 Fixed Assets 1,489 1,275 Other Assets 2,450 1,912 Credit Deposit Ratio 70.46% 76.14%

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

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Profit & Loss

68.56% 383 (713) 1,096 (2,391) 3,487 1,626 1,861

FY08

72.31% 113 (107) 220 (574) 794 292 502

Q4FY11

INR mn

FY09 FY10 Q1FY11 Q2FY11 Q3FY11 FY11

Net Interest Income 1,972 1,420 433 464 493 1,891 Other Income 1,201 1,071 299 269 260 1,121 Operating Income 3,173 2,491 732 733 753 3,012 Operating Expenses (2,420) (2,008) (506) (525) (547) (2,152) Operating Profit 753 483 226 208 206 860 Total Provisions (1,634) (1,268) (255) (160) (124) (646) PAT (881) (785) (29) 48 82 214 Cost Income Ratio 76.27% 80.62% 69.13% 71.59% 72.59% 71.43%

Note: Financial numbers are rounded off to nearest whole number

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Thank you