#1INVESTOR PRESENTATION December-2020 Dhanlaxmi Bank Dhxd DhanlaxmiBank Dhanlaxmi Bank established 1927#22 Dhamalaksimi bank building in 1927 Dhanlaxmi Bank Profile Incorporated in 1927 at Thrissur, Kerala. Over the 93 years that followed, Bank has earned the trust and goodwill of clients. ➤518 touch points including 245 branches, 256 ATMs and 17 BCs across 14 States and 1 Union Territory; our focus has always been on customizing services and personalized relationships. Total Employees: 1664 Vision Banking on Relationships forever Dhanlaxmi Bank Dhanlaxmi Bank Mission To Become a Strong and Innovative Bank with Integrity and Social Responsibility to Maximize Customer Satisfaction as well as that of the Employees, Shareholders and the Society. DhanlaxmiBank established 1927#3Key Milestone 2020: Highest ever profit of Rs 65.78Crs, Consistent profit for Last eight Quarters,Capital adequacy Ratio reaching a high of 14.41% 2013 to 2018 :Raised a total of Rs 7677.73 million during 2013 to 2018 through Preferential allotment / Qualified Institutional Placement as Equity /Tiire Il Bonds. 2012 Awarded the Asian Banker Technology Implementation award - International award for Best branch automation 2011: Awarded the "Best Mid-sized Bank in Growth Category" by Business Today- KPMG survey. Awarded the Information Week EDGE Award 2011 for IT transformation 2010: Launched new "Dhanlaxmi Bank" brand. Total business* of Rs. 1,00,000 Million. Raised Rs.3,800 Millions by way of Qualified Institutional Placement. Opened 250th branch. 2009: Recorded net profit of Rs.574.5 Million. Reached a milestone of 200 branches with Kolkata branch in East Region. 2008: Total business of Rs. 75,000 Million. Second Rights Issue. All branches under core banking technology. 2003: Introduced Core Banking 2002: Raised Rs. 270 million in a Rights Issue 2000: Installed first ATM 1996: Raised Rs. 240 million in IPO and listed Equity Shares on the National Stock Exchange, Bombay Stock Exchange and the Cochin Stock Exchange 1989: First branch outside Southern region was opened in Mumbai. 1986: Total business of Rs. 1000 Million. 1980: 100-strong branch network 1977: Designated as scheduled commercial bank by the Reserve Bank of India (RBI). 1975: Set up the first branch outside the home state of Kerala, at Mount Road, Chennai -Tamilnadu 1927: Incorporated in Thrissur, Kerala 3 Dhanlaxmi Bank established 1927#44 Name Profile of Board of Directors Experience & Other Directorships Mr. G Subramonia lyer (Par time Chairman) Mr G. Subramonia lyer, agriculture graduate, has an experience of more than 36 years in banking at various levels and had retired as Executive Director of Uco Bank. He was in-charge of operational heads of Treasury, Finance, Planning & Development, Credit, Risk, IT, International Operations, Recovery. Mr. Shivan J.K (Managing Director & CEO) Shri. Shivan J.K has 37 years of experience in State Bank of India (SBI) and has handled various areas of commercial banking. He has headed corporate banking, international & forex operations and was also involved in retail advances and agriculture credit. He also has experience as Branch/ Regional Head in SBI. Shri. Shivan retired as Chief General Manager of Stressed Assets Resolution Group of SBI. He is an MBA and graduate in Agriculture and is a certified associate from Indian Institute of Bankers. Dhanlaxmi Bank established 1927#55 Name Profile of Board of Directors Experience & Other Directorships C.K.Gopinathan Director Mr. C.K.Gopinathan is promoter Director of C.K.G.Supermarket. He was also Director in the Catholic Syrian Bank Limited for 8 years. Mr. C.K.Gopinathan is a major share holder of our Bank. He has more than 25 years of experience in finance sector. G. Jagan Mohan RBI Additional Director Shri. G. Jagan Mohan has been appointed as Additional Director by Reserve Bank of India for a period of two years w.e.f February 27, 2020 to February 26, 2022 or till further orders of RBI. Dr. (Capt.) Suseela Menon R Independent Director Dr. (Capt.) Suseela Menon R is a post graduate in commerce and holds a doctorate in Economics. She has more than 21 years of experience as faculty of Commerce, Management Accounting, Cost Accounting, Financial Management, Economics and other Management-related subjects. She retired as Professor of Commerce. DhanlaxmiBank established 1927#66 Name Profile of Board of Directors Experience & Other Directorships Mr. G Rajagopalan Nair Independent Director Mr. G. Rajagopalan Nair, a post graduate in Electronics and Communication. has an experience of 21 years in banking and 23 years in banking related Information Technology and Fintech companies. He had retired from Federal Bank as General Manager - Information Technology. Mr. G. Rajagopalan Nair was IT consultant of CSB Bank and Bahwan Cybertek. He had undertaken software implementation for variuos banks in India and abroad. Mr. P. K Vijayakumar Independent Director Mr. P.K Vijayakumar had retired from Indian Revenue Service as Director General of Income Tax after working at various levels in the Income Tax Department. He also held the position of Insurance Ombudsman. He was appointed as Independent External Monitor of Public Sector Undertakings. Mr. P.K Vijayakumar is a post graduate in Chemistry and also holds B.Ed degree. Mr. D K Kashyap RBI Additional Director Shri. D K Kashyap has been appointed as Additional Director by Reserve Bank of India for a period of two years w.e.f September 28, 2020 to September 27, 2022 or till further orders of RBI. Dhanlaxmi Bank established 1927#7Name Profile of Key Management Personnel Experience Mr. Ramesh AJ Chief Financial Officer Experience of 33 years in banking sector. Worked in SBI/SBT in various areas like Finance & Accounts,Large Value Credit intensive branches etc. He holds a degree in chemistry and is also a Certified Associate of the Indian Institute of Bankers (CAIIB). He is also a qualified Chartered Accountant. Mr. Venkatesh .H Company Secretary He is an Associate Member (ACS) of the Institute of Company Secretaries of India and joined in the Bank on 04.11.2013 as Assistant Company Secretary. He holds M Com, JAIIB He is also an associate member of Institute of Chartered Accountants of India and an Associate member of Institute of Cost Accountants of India. 7 DhanlaxmiBank established 1927#88 Name Mr. L. Chandran Chief Recovery Officer Mr. John Varughese (Head IT, Digital Banking) Mr. Manoj Kumar S Chief Credit Officer Mr. Rajan Sleeba Head-Human Resources Department Mr. Surendran .AV Head-Treasury Mr. Santoy John Chief Compliance Officer Profile of Senior Management Experience Worked in Government sector, Public Sector Financial Institution for about 7 years and Bank for 19 years in different capacities in various geographical areas. A post graduate in Science, he holds an MBA (Finance) and B.Ed. Degree. He is also a Certified Associate of the Indian Institute of Bankers. 28 years experience in IT & Banking of which 23 years in Banking Domain. Worked as Head Alternate Channels, AGM-IT and Regional Head, Engineering graduate with MBA (Banking & Finance ). He is also a Certified Information System Auditor (CISA) and Certified Associate of the Indian Institute of Bankers (CAIIB). A Credit Manager having 30 years of exposure in India and overseas, having worked in Retail /SME/ Credit, Credit Administration and Recovery functions. A post Graduate in Commerce, he worked previously in Can Fin Homes Ltd, ICICI Bank, First Gulf Bank, UAE & India Bulls HFC prior to joining Dhanlaxmi Bank 36 years of experience in banking sector including working with Federal Bank etc., a Post Graduated in law (LLM) and Certified Associate of the Indian Institute of Bankers (CAIIB). Worked as Regional Head North, Thrissur and Thiruvananthapuram. 33 Years of experience in banking sector with specialization in Treasury Management for last 14 years. He is a science Graduate and Junior Associate of the Indian Institute of Bankers (JAIIB) 19 Years of experience in banking sector; He is a Post Graduate in Science, a certified Information Systems Auditor (CISA) and a Certified Associate of the Indian Institute of Bankers (CAIIB). He is holding Postgraduate Certificate programme in Business Management from XIMB Bhubaneswar DhanlaxmiBank established 1927#99 Overview of Distribution www.danink.com Dhanlaxmi Bank "Over 518 touch points including 245 branches, 256 ATMs and 17 BCs across 14 States and 1 Union Territory; our focus has always been on customizing services and personalizing relations" Banking on Holdnahip forever 7% 14% 9% 7% 5% 58% Andhra Pradesh Karnataka Kerala Maharashtra Tamil Nadu Others Dhanlaxmi Bank established 1927#10Shareholding pattern Shareholding 1% & above (As on December 31, 2020) Share Holder % of Stake B RAVINDRAN PILLAI GOPINATHAN CK 9.999 7.498 YUSUFFALI MUSALIAM VEETTIL ABDUL KADER KAPILKUMAR WADHAWAN VESPERA FUND LIMITED 4.999 Individ 4.999 uals/H 4.416 NRI UF NICHE FINANCIAL SERVICES PVT LTD. 3:122 32.25 20.21 SHITAL RAGHU. KATARIA 2:630 P RAJA MOHAN RAO 2:437 MARSHAL GLOBAL CAPITAL FUND LTD 2:173 ANTARA INDIA EVERGREEN FUND LTD 2.154 SUASHISH DIAMONDS LIMITEDASHISH Corpor ates 1.709 RAMESHKUMAR GOENKA 30.38 MOHANACHANDRAN NAIR B 1.599 ELARA INDIA OPPORTUNITIES FUND LIMITED 1.586 B.GOVINDAN 1.519 HAREENDRAN C.K. 1.383 AGNUS VENTURES LLP 1.383 FII/FPI 17.38 Dhanlaxmi Bank established 1927#11Deposits Comprehensive range of Products Corporate Products Current Account Cash Credit* * Savings Account Term Deposit Corporate Salary NRE Account NRO Account Foreign Currency Non Repatriable Fixed Deposit 3 in 1 account (Saving Account, Demat Account & Trading Account) Business Correspondents Overdraft Term Loans Corporate Loans Project Finance Bill Advance and Packing Credit Advance Foreign Currency Loans Invoice/Dealer Financing Lease Rental Discounting Office Equipment Loan Retail Products Agriculture / Kissan Vahana Loan/ Kissan Card Home Loan / Loan against property Gold Loan/ Loan against Sovereign Gold Bonds Vehicle Loan Live Stock Loan Personal Loans/ Educational Loan Loan against LIC policy/ Deposit/ Overdraft against Shares Micro Credit Loan/ Self Help Group Loans Medical Equipment Loan International Debit cards / Credit Cards / Gift Cards/Forex Cards Other Services Distribution of General and Life Insurance products. Mutual Fund Distribution Technology Related products Retail & Corporate Internet Banking Missed Call Services Mobile Banking Depository Services IMPS Locker Services Forex Services Bankers to Issue /ASBA Cash Management Services/ Aadhaar Based Payments Import Export related services e-IT Return Filing Remittances - Real Time Gross Settlement (RTGS) / National Electronics Funds Transfer (NEFT)/MTS Online trading Point of Sale Sovereign Gold Bonds Pay Smart PAN Card Services Bill Payment * New Product under Cash Credit- DHANAM GST BUSINESS LOAN is also available Dhanlaxmi Bank established 1927#12Performance Overview Y-O-Y Comparison Continuous 10th Quarter Profit, Q3 net profit Rs 11.81 Crores ➤ Total business Rs. 18293 Crs as on 31st December 2020. (Growth of 3.40%.) CASA to Total deposits ratio 32.30%. ➤ Retail advance grew by 13.19% to reach Rs. 3458 Crs as on 31.12.2020 Gold Loan portfolio grew by 48.62% on YoY basis to reach Rs 1782 Crores Gross NPA improved by 135 bps as on a YOY basis to reach 5.78% Net NPA improved to 1.11% CRAR improved to 14.16% as on 31st December 2020 against 13.55% as on 31st December 2019 Provision Coverage Ratio improved by 337 bps on a YoY basis to 92.68%. Dhanlaxmi Bank established 1927#13Performance Highlights Particulars 31-12-2019 31-03-2020 (Reviewed) (Audited) 30-09-2020 (Reviewed) 31-12-2020 (Reviewed) Gross Advances (in crore) 6878 6799 7060 6837 Deposits (in crore) 10813 10904 11436 11456 GNPA% 7.13 5.90 6.36 5.78 NNPA% 1.62 1.55 1.66 1.11 NIM % 3.31 3.21 2.88 2.95 ROA% 0.71 055 0.32 0.34 ROE % 10.17 7.95 4.73 4.93 Cost/Income Ratio % 66.29 66.67 66.67 70.52 CASA to Total Deposits 30% 30% 31% 32% Market Capitalization (in 355.99 203.67 311.20 369.40 crore) Book Value Per Share 32.58 32.68 33.48 33.94 (Rs.) CRAR % 13.55 14.41 13.72 14.16 DhanlaxmiBank established 1927#14Performance Highlights (Rs. in Cr) Trend in movement of CASA % DEPOSITS CASA % CASA TD (in crore) ■2019-20(Q3) 30 32 ■2019-20(Q4) 11456 10904 11436 10813 30 ■2020-21(Q2) 31 7865 7756 7530 7655 2020-21(Q3) RETAIL % 8283 8249 8571 8700 ■2019-20(Q3) 2019-20(Q3) 2019-20(Q4) 2020-21(Q2) 2020-21(Q3) 52 52 54 ■2019-20(Q4) 2020-21 (Q2) 53 5...4 2020-21 (Q3) Dhanlaxmi Bank established 1927#15Advance Portfolio- Gross Advance 6878 6799 7060 6837 (Rs in Cr) 100% 1856 1739 1750 1676 80% 1199 1270 1646 1782 60% 1070 1010 Retail Gold 952 958 40% 759 787 SME 766 704 20% 1994 1993 1946 1717 Agri &Micro Corporate 0% 2019-20(Q3) 2019-20(Q4) 2020-21(Q2) 2020-21(Q3) ■Corporate SME ■ Agri & MFI (excluding gold) ■ Retail ■Gold 24% 25% 26% 14% 11% Dhanlaxmi Bank established 1927#16Performance Highlights-CRAR 16 13.55 14.41 13.72 14.16 14 12 10 10.36 10.69 10.62 10.99 86420 ■Tier I ■ Tier II 3.19 3.72 3.1 3.17 2019-20(Q3) 2019-20(Q4) 2020-21(Q2) 2020-21(Q3) Dhanlaxmi Bank established 1927#17Business Result For the quarter ended For Nine Months ended Year Ended Growth Particulars 31.12.2019 (Reviewed) 30.09.2020 31.12.2020 (Reviewed) (Reviewed) 31.12.2019 31.12.2020 31.03.2020 (Reviewed) (Reviewed) (Audited) YOY (YOY) Growth% Interest Income 251 244 237 745 718 988 (27) (3.62) Interest Expenses 154 155 147 457 460 614 3 0.66 Net Interest Income 97 97 89 89 91 288 258 373 (30) (10.42) Non Interest Income 35 21 49 75 112 113 37 49.33 Operating Expenses 86 76 107 240 261 324 21 8.75 Operating Profit 46 46 34 44 32 122 109 162 (13) (10.66) Provisions and Contingencies Net Profit 22 24 20 20 59 77 96 18 30.51 21 14 12 63 32 66 (31) (49.21) Dhanlaxmi Bank established 1927#18Business Result for the Quarter Ended Net Interest Income Operating Profit Rs (in Cr) 97 40 100 46 40 91 50 34 32 89 86 90 80 0 31.12.2019 31.03.2020 30.09.2020 31.12.2020 31.12.2019 31.03.2020 30.09.2020 31.12.2020 Non Interest Income Net Profit 14 60 49 60 25 21 20 40 35 15 38 10 20 5 21 3 0 0 31.12.2019 31.03.2020 30.09.2020 31.12.2020 31.12.2019 12 31.03.2020 30.09.2020 31.12.2020 DhanlaxmiBank established 1927#19Income and Margins Net Interest Income for the Quarter Ended 2019-20(Q3) 97 98 96 94 97 2019-20(Q4) 88 92 86 90 88 86 2020-21 (Q2) 89 68 84 82 80 2020-21 (Q3) 91 Net Interest Margin (%) Net Interest Income 91 89 86 2019-20(Q3) 2019-20(Q4) 2020-21(Q2) 2020-21(Q3) Net Interest Margin 3.4 2019-20(Q3) 3.31 3.3 3.31 3.21 3.2 3.1 2019-20(Q4) 3.21 3 2.88 2.95 2.9 2.8 2020-21 (Q2) 2.88 2.7 2.6 2019-20(Q3) 2019-20(Q4) 2020-20(Q2) 2020-21(Q3) 2020-21 (Q3) 2.95 Rs (in Cr) DhanlaxmiBank established 1927#20Income and Margins Yield on Advance 10.76 11 10.91 10 9 31.12.19 31.03.20 10.29 10.28 30.09.20 31.12.20 Cost Income Ratio 80 70 828 70.52 66.29 66.67 66.67 60 31.12.2019 31.03.2020 30.09.2020 31.12.2020 6 5.70 5.7 Cost of Deposits 5.39 5.54 5 31.12.2019 31.03.2020 30.09.2020 31.12.2020 Rs (in Cr) DhanlaxmiBank established 1927#21Asset Quality Particulars 31-12-2019 31-03-2020 (Reviewed) (Audited) 30-09-2020 31-12-2020 (Reviewed) (Reviewed Gross NPA ratio (%) 7.13 5.90 6.36 5.78 Net NPA ratio (%) 1.62 1.55 1.66 1.11 Provision Coverage ratio (%) 89.31 89.87 89.32 92.68 Gross NPA Ratio(%) 7.13 5.78 6.36 5.9 31.12.19 31.03.20 30.09.2020 31.12.20 -Gross NPA Ratio (%) Net NPA Ratio (%) Provision Coverage Ratio Rs (in Cr) 2 1.11 no 100 1.5 Net 1.66 1.62 1.55 -Net 92.68 Provision 1 0.5 NPA Ratio (%) 89.31 89.87 89.32 Coverage Ratio 0 31.12.19 31.03.20 30.09.20 31.12.20 80 31.12.19 31.03.20 30.09.20 31.12.20 Dhanlaxmi Bank established 1927#22Summary of Financials – Balance Sheet Particulars CAPITAL AND LIABILITIES 31-12-2019 (Reviewed) 31-03-2020 30-09-2020 (Audited) (Reviewed) 31-12-2020 (Reviewed) Capital Reserves and Surplus 253 253 253 253 571 574 594 606 Deposits 10813 10904 11436 11456 Borrowings 178 178 150 150 Other Liabilities and Provisions 252 357 280 343 TOTAL 12067 12265 12713 12808 ASSETS Cash and Balances with Reserve Bank of India 588 549 516 480 Balances with Banks and Money at call and short notice 280 581 562 740 Investments 3783 3682 3990 4150 Advances 6490 6496 6720 6512 Fixed Assets 215 214 210 207 Other Assets * 711 744 714 718 TOTAL 12067 12265 12713 12808 *Out of Which RIDF/RHF/MSME Deposits 344 363 327 285 Contingent Liabilities 634 503 473 469 Bills for collection 316 311 306 302 Dhanlaxmi Bank established 1927#23Profitability Approach Liability Strategy Business Strategy Way Forward Systematic Growth in Deposits •Increasing CASA with quality acquisition. •Improve value of account • Quality Advance Portfolio Increasing Retail Advances including Housing Loan, Car Loan, Gold Loan and Loan against property. •Lending based on Cash flow of activities & Collaterals Better Pricing Relocating higher rental Premises & relocating low hit ATMs Negotiation with vendors for competent pricing Optimising Cost . • Cost Rationalization & monitoring Focus on Non Interest Income Focus on recovery efforts using provisions of IBC, RR,OTS etc Effective Cross Selling with increased number of products per customer Marketing of Insurance and Mutual Fund Products • More focus on Non Fund based facilities • Uniform Processing fee structure Other Initiatives • Leveraging benefits of IT Transformation Publicity of various facilities / products available with the bank. •Effective use of data mining tools Improved Visibility Measures Dhanlaxmi Bank established 1927#24Disclaimer 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. 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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. DhanlaxmiBank established 1927#25THANK YOU Dhanlaxmi Bank established 1927