#1DhanlaxmiBank established 1927 Investor Presentation Q2 FY 2022-23 - Trusted by 2 million Customers and 98 Thousand Investors 9 L O O D#2Performance Highlights Performance Highlights YoY: Dhanlaxmi Bank established 1927 Total Business of the Bank grew by 15.71% and reached Rs.21,857 Crore. ☐ Deposits registered a growth of 6.96% to reach Rs.12,748 Crore. ☐ CASA registered a growth of 8.21% to reach Rs.4324 Crore. ☐ Retail Deposits registered a growth of 6% to reach Rs.6382 Crore. Gross Advance grew by 30.67% and reached Rs.9109 Crore. ☐ Retail advance grew by 21% and Gold loan by 19% to reach Rs.4144 Crore and Rs.2051 Crore respectively. ☐ Interest income increased from Rs.447.10 Crore to Rs.520.87 Crore, registering growth of 16.50%. ☐ Net interest income increased from Rs.170.16 Crore to Rs.233.74 Crore by registering growth of 37.37%. ☐ CD ratio improved from 58% to 71% ☐ NIM improved from 2.85% to 3.58%. ☐ Asset quality improved significantly with Gross NPA coming down by 263 bps and Net NPA by 260 bps on YoY basis to 6.04% and 2.32% respectively. ☐ PCR improved from 74.18% to 83.25%. ☐ Cost of deposit reduced from 4.60% to 4.39% Recorded a net profit of Rs.15.89 Crore in Q2 of FY 23 as against net profit of Rs.3.66 Crore of Q2 FY 22. ☐ Operating Profit increased to Rs.35.35 Crore from Rs.26.06 Crore. Investor Presentation - September 2022 2#3BUSINESS PROGRESS BUSINESS PROGRESS Dhanlaxmi Bank established 1927 *. in Crore 21857 20847 18834 17307 17239 17703 8444 9109 7122 6387 6636 6799 10920 10603 10904 11712 12403 12748 31.03.2018 31.03.2019 Investor Presentation - September 2022 31.03.2020 31.03.2021 DEPOSIT GROSS ADVANCE TOTAL BUSINESS 31.03.2022 30.09.2022 3#4Key Revenue Parameters *. in Crore Net Interest Income 117.30 116.44 95.74 96.43 90.66 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 28.32 26.06 Operating Profit 63.62 *. in Crore 37.58 34.53 Dhanlaxmi Bank established 1927 Other Income 68.67 *. in Crore 22.76 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 -21.55 35.35 3.66 2.03 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 -5.02 Investor Presentation - September 2022 Net Profit 23.42 *. in Crore 15.89 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 -26.43 4#5Key Ratios Net Interest Margin 2.85 2.94 3.00 3.64 3.58 Dhanlaxmi Bank established 1927 Cost to Income Ratio 105.24 87.09 82.05 80.71 74.73 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 RoA 0.27 0.16 0.13 RoE 3.99 2.38 1.95 Q2 FY22 Q3 FY22 Q2 FY22 Q4 FY22 Q3 FY22 Q1 FY23 Q4 FY22 Q2 FY23 -0.15 Q1 FY23 Q2 FY23 -2.36 Investor Presentation - September 2022 -0.76 -12.14 15#6Key Indicators Investor Earnings Core Deposits Dhanlaxmi Bank established 1927 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Book Value 34.57 34.66 35.57 34.53 35.16 EPS 0.14 0.08 1.42 (1.04) (0.42) % of CASA + 84% 84% 85% 83% 84% Retail Deposit RoA 0.16 0.13 0.27 (0.76) (0.15) Profitability (Annualized) RORWA 47.34 47.29 49.07 47.68 46.93 Efficiency Investor Presentation - September 2022 RoE 2.38 1.95 3.99 (12.14) (2.36) Cost/Income 82.05 80.71 74.73 105.24 87.09 Net NPA 4.92 3.83 2.85 2.69 2.32 60#7- Asset Quality – Rating Distribution Rating Profile of Corporate Loan Book Q2-FY 22-23 Unrated, 10% AAA, 12% <BBB, 25% BBB, 21% Dhanlaxmi Bank established 1927 External Rating of Corporate Advances Rating Q1 FY23 Q2 FY23 AAA 12% 12% AA, 13% AA 13% 13% A 19% 18% BBB 21% 20% A, 19% <BBB 25% 25% Unrated 10% 12% Total 100% 100% AAA AA ΙΑ BBB |<BBB Unrated Investor Presentation - September 2022 7#8Comparison: Y-o-Y Advance Dhanlaxmi Bank established 1927 Gross Advance Corporate MSME Agri & Micro Retail 31% 56% 28% 19% 21% . in Crore 6971-9109 1659 - 2594 1170-1498 731-873 3411-4144 Total Deposit CA SA CASA Retail TD Deposits 7% 6% 9% 8% 6% . in Crore 11918 12748 705-748 3291 - 3576 3996 - 4324 6045-6382 NII Other Income Operating Profit Net Profit Performance (Q2 FY-22 to Q2 FY-23) (39) 28% 35% % 334 % 91-116 37.58 22.76 26.06 35.35 Cost/Income Gross NPA Net NPA 3.66 15.89 Productivity / Employee - Ratios 6% (263) bps (260) bps 82.05 87.09 8.67 -6.04 4.92 -2.32 11% 11.52 - 12.82 Investor Presentation - September 2022 8#9Comparison: Q-o-Q (Q1- Q2) Dhanlaxmi Bank established 1927 Gross Advance Corporate MSME Agri & Micro Retail (incl. Gold) (0.80) Advance 4% 2% 9% 6% % *. in Crore 8724-9109 2547 - 2594 1510-1498 798-873 3869-4144 Total Deposit CA SA CASA Retail TD Deposits Performance Ratios 1% 6% 3% 4% 1% *. in Crore - 12576 12748 706-748 3454 - 3576 4160 - 4324 6295-6382 Other Income Operating Profit Net Profit Productivity / Employee *. in Crore Investor Presentation - September 2022 206% (21.55) - 22.76 Cost/Income (0.16) % 804% (5.02)-35.35 160% Gross NPA Net NPA (26.43) - 15.89 3% 12.40 12.82 Net interest Margin (31) bps (37) bps (0.06) % 105.24 87.09 - 6.35 -6.04 2.69 - 2.32 3.64 -3.58#10Liability Trends DEPOSITS . in Crore 10510 10455 10706 10041 10191 3996 4008 Dhanlaxmi Bank established 1927 CASA Growth 4252 4160 . in Crore 4324 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 84% 85% 84% 84% 84% 4.60 Cost of Deposits 4.56 4.54 1877 1910 1893 2121 2042 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 ☐ Retail Investor Presentation - September 2022 Bulk 4.41 4.39 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 10#11Advances GROSS ADVANCE Retail 72% Corporate Investor Presentation - September 2022 Corporate 28% Dhanlaxmi Bank established 1927 . in Crore Corporate 2578 2547 2594 2163 1659 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 ₹. in Crore Retail 5866 6515 6177 5312 5389 Retail Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 11#12Asset Quality 136.02 25.31 Q2 FY22 Q3 FY22 161 99 99 166 275 135 161 Q2 FY22 Q3 FY22 SMA 2 Investor Presentation - September 2022 Fresh Slippages 10.45 48.87 Dhanlaxmi Bank established 1927 23.12 Q4 FY22 Q1 FY23 Q2 FY23 SMA Movement 55 50 93 92 176 150 Q4 FY22 54 52 85 146 Q1 FY23 Q2 FY23 SMA 1 -SMA O ₹. in Crore *. in Crore 12#13Asset Quality Gross NPA% 8.67% 7.55% 6.32% 6.35% 6.04% 4.92 Dhanlaxmi Bank Net NPA% established 1927 3.83 2.85 2.69 2.32 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 CD Ratio 68% 69% 71% 62% 58% Provision Coverage Ratio 80.64 77.55 74.18 83.25 81.43 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Investor Presentation - September 2022 13#14Restructured Standard Advances Dhanlaxmi Bank established 1927 Restructured Standard Advances as on 30th September, 2022 Total Restructured Standard Advances - Rs.328.16 Crore 3.36, 1% 27.21, 8% . in Crore 242.43, 74% Investor Presentation - September 2022 0.63,0% Education Loan 38.97, 12% ■MSME standard Restructuring Other restructuring ■Project Under Implementation 15.56,5% RFCS -1 RFCS -2 and RFCS -MSME 14#15Digital Migration Digital Migration Investor Presentation - September 2022 Dhanlaxmi Bank established 1927 71.49% 44.74% 28.71% Share of Digital Banking Transactions @ 71.49% as on 30th Sept 2022 compared to 60.91% as on 30th Sept 2021 Mobile Banking turnover up by 44.74% YoY Retail Internet Banking turnover up by 28.71% YOY 15#16Digital Migration 7.56 Mobile Banking Registered Customers 7.76 7.96 8.08 in Lakhs 8.31 Dhanlaxmi Bank established 1927 Retail Internet Banking Registered Customers in Lakhs 8.34 7.98 8.10 7.79 الس 7.59 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Investor Presentation - September 2022 16#17Balance Sheet overview Particulars CAPITAL AND LIABILITIES Capital Reserves and Surplus Deposits Borrowings Other Liabilities and Provisions 30.09.2021 (Reviewed) 31.03.2022 (Audited) Dhanlaxmi Bank established 1927 ₹. in Crore 30.06.2022 (Reviewed) 30.09.2022 (Reviewed) 253 253 253 253 622 647 621 636 11918 12403 12576 12748 150 150 454 580 289 343 265 281 13232 13796 14169 14498 TOTAL ASSETS Cash and Balances with Reserve Bank of India 1066 708 704 764 Balances with Banks and Money at call and short notice 17 27 100 31 Investments 4594 4044 4102 4061 Advances 6696 8142 8396 8762 Fixed Assets 223 221 222 224 Other Assets* 636 653 645 656 TOTAL 13232 13796 14169 14498 *Out of Which RIDF/RHF/MSME Deposits 247 265 250 249 Contingent Liabilities 857 1023 1036 1106 Bills for collection 305 302 305 303 Investor Presentation - September 2022 17#18Business Result Dhanlaxmi Bank established 1927 *. in Crore Particulars 30.09.2021 (Reviewed) Q2 30.06.2022 (Reviewed) 01 30.09.2022 (Reviewed) Q2 Growth (YoY) YOY Growth% Interest Income 229.01 258.37 262.50 33.49 14.62 Interest Expenses 138.35 141.07 146.06 7.71 5.57 Net Interest Income 90.66 117.30 116.44 25.78 28.44 Non Interest Income 37.58 (21.55) 22.76 (14.82) (39.44) Operating Expenses 102.18 100.77 103.85 1.67 1.63 Operating Profit 26.06 (5.02) 35.35 9.29 35.65 Provisions and Contingencies 22.40 21.41 19.46 (2.94) (13.13) Net Profit 3.66 (26.43) 15.89 12.23 334.15 Investor Presentation - September 2022 18#19Indicators Dhanlaxmi Bank established 1927 ₹. in Crore Particulars Q2 FY 22 Q3 FY 22 Q4 FY 22 Q1 FY 23 Q2 FY 23 Yield on Advances (%) 9.56 9.62 9.39 9.41 9.28 Yield on Investments (%) 5.10 5.18 5.27 5.59 5.57 Cost of Deposits (%) 4.60 4.56 4.54 4.41 4.39 Cost of Funds (%) 4.70 4.67 4.64 4.52 4.50 Net Interest Margin (%) 2.85 2.94 3.00 3.64 3.58 Cost/Income Ratio (%) 82.05 80.71 74.73 105.24 87.09 Return on Assets (%) 0.16 0.13 0.27 (0.76) (0.15) Return on Equity (%) 2.38 1.95 3.99 (12.14) (2.36) EPS (%) 0.14 0.51 1.42 (1.04) (0.42) Book Value (Rs) 34.57 34.66 35.57 34.53 35.16 Market Capitalisation 409.88 375.72 313.73 294.51 305.89 CRAR Basel III (%) 13.64 13.13 12.98 12.19 12.32 Core CRAR 10.98 10.52 10.31 9.95 10.08 RWA Basel III (in Cr) 6115.45 6388.36 6770.12 6755.35 6804.00 Ratio of RWA to Total Assets 47.34 47.29 49.07 47.68 46.93 Provision Coverage Ratio 74.18 77.55 80.64 81.43 83.25 Investor Presentation - September 2022 19#20Dhanlaxmi Bank established 1927 Strong Management Team Strong Management Team Mr. Shivan J.K, Managing Director & CEO ■ Bachelor in Agriculture, MBA & CAIIB; More than 37 years of experience in Retail, Agri, Corporate, International & Forex operations. ◉ Was Chief General Manager of Stressed Assets Resolution Group of State Bank of India and worked with EY India as Senior Advisor. Mr. L. Chandran, General Manager ■ A post graduate in Science, MBA (Finance), CAIIB and B.Ed; ■ Associated with DLB for over 25 years in different capacities in various geographical areas and was Chief Risk Officer, Chief Compliance Officer, Chief Recovery Officer and Head SME (Credit Underwriting). Also worked in Government and Public Sector Financial Institution for about 7 years. Ms. Kavitha T A, Head - Operations & CFO (Additional Charge) • • Qualified Chartered Accountant and Graduate in Commerce with CAIIB. Associated with DLB for over 19 years in different capacities. Has played a pivotal role in setting up the Integrated Risk Management Department and Operations Department of the Bank. Was the Regional Head of 32 branches spread over North Districts of Kerala & Karnataka State. Also worked in a Systemically Important NBFC for 3 ½ years. Mr. John Varughese, Head IT and Digital Banking ■ Engineering graduate, MBA, Certified Information System Auditor (CISA) & CAIIB; Over 28 years of experience in IT & Banking including with Federal Bank. ■ Worked as Chief Information Security Officer, Head - Alternate Channels, Regional Head, Chief Compliance Officer and Chief Credit Officer. Mr. Rajan Sleeba, Head- Human Resources Department ■ Post Graduate in law (LLM) and CAIIB; Over 36 years of experience in banking sector including working with Federal Bank. ■ Vast experience in Branch Banking, Credit and as Regional Head. Mr. Surendran A.V, Head- Wholesale Banking ■ Graduate in Science and JAIIB; More than 33 Years of experience in banking with specialization in Treasury Management for last 17 years. ■ Worked as Regional Head and handled Government Business. Investor Presentation - September 2022 20 20#21Strong Management Team Mr. Santoy John, Chief Compliance Officer Dhanlaxmi Bank ■ Post Graduate in Science, CISA & CAIIB and PGCP in Business Management from XIMB Bhubaneswar, previously associated with ICICI Bank and RBL Bank. Over 24 Years of experience covering Teaching, Retail Banking, Internal Audit, Information Security, Payment systems, Centralized Operations and Compliance. Mr. Binoy B.S, Head- Internal Audit ■ Graduate in Science, LLM & CAIIB; Over 25 years of experience in banking including working with South Indian Bank and 5 years' as a practising lawyer. ■ Vast experience in Legal, Credit Sanction, Credit Monitoring and Recovery. Mr. Satheesan V, Chief Vigilance Officer ■ Graduate in Law (BAL, LLB), Master of Business Law (MBL) and MBA (International Business); ■ Over 29 years experience which includes as a practicing lawyer and with Indian Overseas Bank. Has the Additional charge as Head-Legal. Mr. Suresh M Nair, Chief Credit Officer ■ Bachelor in Commerce and CAIIB; Over 40 Years of experience in Banking with SBI Group (State Bank of Travancore, State Bank of Patiala & State Bank of India). ■ Vast experience in Corporate Credit, SME, Stressed assets & Project Finance. Mr. Gurumurthy R.K, Head Treasury ■ Commerce Graduate with CAIIB ■ 39 years of experience in Commercial & Investment Banking with specialization in Treasury operations for over 30 years, in India and abroad. Mr. Venkatesh H, Company Secretary established 1927 • A qualified Company Secretary, Chartered Accountant, Cost Accountant and Post Graduate in Commerce & JAIIB. • Over 8 years of experience in Secretarial operations. Investor Presentation - September 2022 21#22Tie-Ups Dhanlaxmi Bank established 1927 NEW STREET TECH Your fast track to the future Dhanlaxmi Bank entered into the Fintech Era for Micro Lending, Operation management & Technology services under priority sector lending by associating with New Street Technologies Pvt Ltd. B BAJAJ Allianz Relationship Beyond Insurance Canara HSBC◆ OBC Life Insurance SBI general BBAJAJ | Allianz INSURANCE General Insurance Co. Ltd. SURAKSHA AUR BHAROSA DONO NSDL Technology, Trust & Reach NREDCAP Clean Energy for Sustainabi Samunnathi Kerala State Welfare Corporation for Forward Communities Ltd. smcBSE Moneywise. Be wise. STAR M SMART INVESTING Supplyco food security for Kerala Investor Presentation - September 2022 22#23Branch Network 19 12 34 Investor Presentation - September 2022 Over 520 customer touch points including 247 branches, 263 ATMs and 17 BCs Branch Presence Metro Branches - 58 Urban Branches - 63 Semi-Urban Branches -107 Rural Branches - 19 23#24Disclaimer Dhanlaxmi Bank established 1927 This presentation has been prepared by Dhanlaxmi Bank (the "Bank") solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose. By attending this presentation, you are agreeing to be bound by the foregoing restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials. The information contained in this presentation does not constitute or form any part of any offer, invitation or recommendation to purchase or subscribe for any securities in any jurisdiction, and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with any transaction. This presentation is not and should not be construed as a prospectus (as defined under Companies Act, 1956) or offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2009, as amended, or advertisement for a private placement or public offering of any security or investment. The information contained in these materials has not been independently verified. No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. Such information and opinions are in all events, not current after the date of the presentation. The recipients of this presentation and the information contained herein are not to construe the document as tax, investment or legal advice. Any forward-looking statements in this presentation are subject to risks and uncertainties that could cause actual results or financial conditions or performance or industry results to differ materially from those that may be inferred to being expressed in, or implied by, such statements. Such forward-looking statements are not indicative or guarantees of future performance. Any forward-looking statements, projections and industry data made by third parties included in this presentation are not adopted by the Bank, and the Bank is not responsible for such third party statements and projections. This presentation may not be all inclusive and may not contain all of the information that you may consider material. The information presented or contained in these materials is subject to change without notice. Neither the Bank nor any of its affiliates, advisers or representatives accepts liability whatsoever for any loss howsoever arising from any information presented or contained in these materials. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. This presentation is for general information purposes only, without regard to any specific objectives, financial situation or informational needs of any particular person. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM ANY PART OF ANY OFFER, INVITATION OR RECOMMENDATION TO PURCHASE OR SUBSCRIBE FOR ANY SECURITIES IN THE UNITED STATES OR ELSEWHERE Investor Presentation - September 2022 24#25- Investor Presentation – September 2022 Thank You Dhanlaxmi Bank established 1927 25