DCB Bank Limited

Murali M. Natrajan

MANAGING DIRECTOR

Satish Gundewar

CHIEF FINANCIAL OFFICER,

Ajit Kumar Singh

HEAD TREASURY & FIG,

Pra Veen Kutty

HEAD RETAIL BANKING, DCB

Sridhar Seshadri

CHIEF RISK OFFICER, DCB

rs,

challenge for small customers. Although we are spending a lot ·of time in educating these customers, we do find the default. And if a particular customer gets into the default or what they call as ou

70%

ns were always in the range of three and a half, four times. This quarter, we have almost reached 70% coverage, let me remind you that we do granular secured lending. So, therefore, we have had a cov

45,000 crore

which is the margin of safety, which is a strength of this franchise. Our balance sheet crossed 45,000 crores, CASA crossed 10,000 crores and grew by 51% and \ we are getting the benefit of our attention

10,000 crore

y, which is a strength of this franchise. Our balance sheet crossed 45,000 crores, CASA crossed 10,000 crores and grew by 51% and \ we are getting the benefit of our attention and focus on our branches in

51%

this franchise. Our balance sheet crossed 45,000 crores, CASA crossed 10,000 crores and grew by 51% and \ we are getting the benefit of our attention and focus on our branches in savings account.

60%

benefit of our attention and focus on our branches in savings account. And that grew by more than 60%. Our advances growth is 18%, our disbursements were almost the same as the fourth quarter. We had

18%

focus on our branches in savings account. And that grew by more than 60%. Our advances growth is 18%, our disbursements were almost the same as the fourth quarter. We had lower disbursal in co-lendi

85%

well as the fourth quarter of last year. Plus we have also added a lot of frontline staff. About 85% to 88% of our total staff are facing the customer and supporting business. So, our overheads are

88%

s the fourth quarter of last year. Plus we have also added a lot of frontline staff. About 85% to 88% of our total staff are facing the customer and supporting business. So, our overheads are very li

155 crore

well on the operating profit, core fee income is doing well. Cast year we had the benefit of 154, 155 crores of Treasury income, the interest rate is not supporting that type of opportunity. This year our

30%

doing well .... CASA ratio is moving up, which is also a good sign our intention is to cross the 30% as soon as possible. NIMs, we have a five, seven basis point challenge primarily because of exces

375 basis point

that dampened the NIM a bit, but our stable NIM that we expect should be in the range of 365 to 375 basis point. In retail and SME business, which is very pure business that we do is cost do come in first. But

“But that is nothing to worry about our core lending, core disbursals are doing quite well and we expect that to step up further, as we have grown our branches in the last quarter as well as the fourth quarter of last year.”

“NIMs, we have a five, seven basis point challenge primarily because of excess liquidity which we had to maintain in the start of the quarter as the business was taking time to pick up that dampened the NIM a bit, but our stable NIM that we expect should be in the range of 365 to 375 basis point.”

“But as we build volume, we expect the cost to average asset as well as cost income to come down.”

“We also expect the slippage especially of mortgages and commercial vehicle and SME to be at the same level or below pre-COVID levels· in about two to three quarters that is what our .”

“expectation is and we also expect our credit cost to be definitely lower than last year credit cost.”

“So, do you expect that to normalize the here on?”

“So, till the time we have this product, we expect this, that customers are used to this product, they like this product, but we need to get them to have the discipline of that.”

“No, we will be passing on this thing we have already, 40 basis points we have already passed, 50 basis point will get passed on in August.”

“And sir the credit cost guidance of 50 to 60 basis point that is for FY23 or how are we?”

“On a steady state we expect credit cost to be 50 to 60 basis points.”

Murali M. Natrajan

36

Mona Khetan

11

Moderator

10

Rohan Mandora

9

Jai Mundhra

5

Renish Patel

2

Neel Mehta

2

Rakesh Kumar

2

Mahesh MB

2

Rishikesh Ojha

1

Murali M. Natrajan

Thank you. Good evening, all of you. I am speaking to you from our boardroom. We have Mr. Sridhar Seshadri - our Chief Risk Officer, we have Ajit Singh - our Treasury and FI Head, we have Praveen Kutty, who is the Head of our Retail Banking. We have Satish Gundewar, who took charge from Bharat Sampat with whom you have been interacting for many years as ChiefFinancial Officer. So, in the first five, seven minutes or so, let me give you some highlight: One of the important highlight that I would like to bring to your attention is that, we continue to be very strong in our recoveries and upgrades. In fact, upgrade is much higher than recoveries and so, it just tells you about the robustness of the portfolio, the slippages are high, primarily contributed by gold loans, gold loans are contributing to the slippage also to the upgrade for the simple reason that the Reserve Bank of India rule that came in November of 2021, where every day, the previous 90 days the customer has to be servicing