#1DCB Development Credit Bank Limited Analyst Meet 12 May, 2008 DCB#2DCB Important Notice No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness accuracy completeness or correctness of such information or opinion contained herein. The information contained in the presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" including those relating to the Bank's general business plans & strategy, its future financial condition and growth prospects, and future development in its industry and its competitive environment. Actual results may differ materially from these forward looking statements due to number of factors, including future changes or development in the Bank's business, its competitive environment and political, economic, legal and social conditions in India. This communication is for general information purpose only, without regard to specific objectives, financial situations and need of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Bank and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation cannot be copied and / or disseminated in any manner.#3DCB Milestones Q3 FY 07 Successful IPO Oversubscribed 36 times FY 07 Q4 FY 07 RBI issued Licenses to open 8 new branches showing renewed confidence in DCB DCB turnaround gains momentum with over 400% increase in Net Profits in FY 08 FY 08 Net Profit Rs. 38.33 Crs. FY 08 Q2 FY 08 Capital raised Rs. 280 Crs., reflected growing investor confidence#4DCB Preferential Allotment (Rs. 280 crores @ Rs. 105) % Shareholding 16% 14% 12% 10% 8% 6% 4.24% 3.78% 4% 3.04% 3.04% 2% 0.92% 0.28% 0% Tata Cap. Tata Inv. Corp. Al Bateen Inv Co. GRA Finance Corp DCB Inv. India Cap. TOTAL Opp. 15.30%#5DCB Shareholding Pattern Sr. As on 31-Mar 2008 No. of Category No. of Shareholders I FOREIGN HOLDING Shares % of Paid- up Capital a AKFED 2 43750052 25.10 b FOREIGN INST. INVESTORS 35 52348014 30.03 C FOREIGN COMPANIES 3 16086723 9.23 d NON RESIDENT INDIANS SUB TOTAL I 586 1870196 1.07 626 114054985 65.44 II DOMESTIC HOLDING b OTHER RESIDENT a DOMESTIC COMPANIES SHAREHOLDERS 1489 23833614 13.67 106114 36410225 20.89 SUB TOTAL II 107603 60243869 34.56 GRAND TOTAL (I+II) 108229 174298854 100.00#6DCB Balance Sheet Size Rs. crores 8,000 7,000 6,000 5,000 3742 41% 4,000 3,000 2,000 1,000 0 FY 06 Y-o-Y FY 07 Rs. in crores 7577 5262 44% Assets Growth at 44% Y-o-Y Y-o-Y FY 08#7DCB Retail Loans To Total Loans (Gross) Rs. crores 4,500 4,000 3,500 2841 3,000 2,500 2098 2,000 1,500 1,000 698 38% 500 33% 0 FY 06 FY 07 Rs. in crores 4255 1896 1077 45% Total Advances Retail Advances FY 08#8DCB Retail Advances (Gross) as on Mar. 31, 2008 as on Mar. 31, 2007 WC / Other business loans 23% (10.2%) Mortgage (2.7%) 6% CE Loans 11% (5.0%) CV Loans 21% (9.6%) Personal Loan 39% (17.1%) WC/Other business loans 26% (9.8%) Personal Loan 50% Mortgage 10% (3.7%) (19.3%) CV Loans 11% (4.1%) CE Loans 3% (1.0%) Figures in parentheses represent % to total advances#9DCB CASA Share in Total Deposits Rs. crores 7,000- 6,000 5,000 4,000 3124 3,000- 2,000 4415 6075 Rs. in crores 1474 1252 24% 1001 32% 28% 1,000 0 FY 06 FY 07 Total Deposits CASA FY 08#10DCB Investments SLR Investments Non-SLR Investments AFS HFT HTM Total Total Total Amount As at 31st March, 2008 (Rs. in crores) 1715 420 2135 Modified duration of HTM is 2.68 Modified duration of AFS+HFT is 1.00 1265 102 768 2135#11DCB Net Interest Income (NII) Rs. crores 200 180- 160- 140 120 100 75 59% 80 60 40- 220 Rs. in crores 186 120 56% Y-o-Y Y-o-Y 0 FY 06 FY 07 FY 08#12DCB Net Interest Margin (%) % 3.5 3.0 2.5- 2.0 1.8 1.5- 1.0 0.5- 3.0 2.7 0.0 FY 06 FY 07 FY 08#13DCB Operating Profit 120 Rs. in crores 110 100- 80 80 Rs. crores 60 60 40 40 41 168% ↑ 308% -20 Y-o-Y 0 20 20 Y-o-Y -20 FY 06 FY 07 FY 08#14DCB Net Profit Before Tax Rs. crores 40 20 -85 2 0 -20 -40 -60 -80 -100 -120- FY 06 FY 07 FY 08 Rs. in crores 36#15DCB Net Profit After Tax Rs. crores 45 25 7 -85 5 -15 -35 -55 -75 -95- FY 06 FY 07 FY 08 Rs. in crores 38#16DCB Non Performing Assets (%) 18 15.0 16 14 12 10 8. 5.1 6. 4.5 4 2 0 FY 06 FY 07 % 1.6 1.5 0.7 Gross NPA ☐ Net NPA FY 08#17DCB Capital Adequacy Ratio (%) 13.4 11.3 14.0 9.7 1.6 12.0 10.0 2.9 8.0 3.7 11.8 6.0 8.4 4.0 6.0 2.0 0.0+ FY 06 FY 07 FY 08 % Tier I Tier II#18DCB Yield on Total Advances (%) 16% 12% 8.3% 8% 4% 0%+ FY 06 13.3% 11.6% FY 07 Yield on Total Advances FY 08#19DCB Cost Income Ratio (%) 140% 115.1% 120% 100% 80% 60% 40% 20% 0% FY 06 80.7% 68.6% FY 07 ☐ Cost Income Ratio FY 08#20DCB Q-o-Q Growth in Revenue and Profits 100 80 80 60 60 40 40 20 0 39 27 15 Q4 FY07 61 60 51 Q4 FY08 Rs. in crores Net Interest Income Non-Interest Income Operating Profit#21DCB Abstract FY 08 Rs. in crores Q4 Q4 Growth Growth FY 08 FY 07 FY 08 FY 07 Total Advances 4069 2659 53% 4069 2659 53% Total Deposits 6075 4415 38% 6075 4415 38% Net Interest Income 60.8 38.5 58% 186.1 119.6 56% Non Interest Income 59.9 26.9 123% 162.6 92.5 76% Total Income 120.7 65.4 85% 348.7 212.1 64% Operating Expenses 70.0 50.3 39% 239.1 171.1 40% Operating Profit 50.7 15.1 237% 109.6 41.0 168% Provisions & Contingencies 41.8 21.5 95% 73.5 39.2 88% Net Profit before Tax 8.9 (6.4) 237% 36.1 1.8 1 1886% Provision for Taxes (FBT & DTA) 16.5 (6.0) 373% (2.2) (5.6) 61% Net Profit after Tax (7.6) (0.4) (1756%) 38.3 7.4 420%#22DCB Branch Network DCB 80 Branches DCB Domestic Deposit WERDD S W NR Deposit Rates Exchange Rates • . 112 ATMs 18,000 shared ATMs network Customer base of ~600,000 Spread Across • • Maharashtra ⚫ Gujarat •Andhra Pradesh • Karnataka • New Delhi • Rajasthan • Goa • Tamil Nadu • Haryana DCB Feel the difference Hutch Charge your phone here GLUARAT GOA HARYANA MAHARASHTRA KARNATAKA NEW DELHI ANDHRA PRADESH TAMIL NADU · West Bengal • Daman & Diu • Dadra & Nagar Haveli WEST BENGAL#23DCB Key Business Highlights 8 New Branches opened in FY08. Dediapada branch (Gujarat) opened exclusively for Micro Finance. Tier I Capital Infusion of Rs. 280 crores in August 07. Strategic Alliances for Mortgage Loans, Credit Cards, POS and Online Broking. Priority Sector (PSL) requirements achieved. Sale of Legacy Corporate NPA and written off Accounts. Back Office Operations and IT Centre relocated to Vikhroli#24DCB Key Business Highlights (contd.) Up scaling of Commodity Finance Business. Bancassurance Business ramped up. 24x7 Call Centre launched.#25DCB Human Capital - Our Treasure ■ ■ Performance Management plan in place. Every employee has a specific KRA & Goal sheet. Dedicated staff of FY 2008: 2235 (including 508 sales trainees) as compared to FY 2007 1810 (including 479 sales trainees). Training man-hours increased from 2579 in FY 2007 to 5002 in FY 2008 Average age of Employees reduced from 39 years in March 2007 to 32 years in March 2008. ESOPs granted to all eligible staff - 97% coverage.#26DCB Partners In our Progress HDFC AGA KHAN RURAL SUPPORT PROGRAMME A project of the Aga Khan Foundation Birla Sun Life Insurance Infosys® ORACLE® JM FINANCIAL NUCLEUS SOFTWARE India Infoline ENAM i ICICI Bank RELIANCE General Insurance Anil Dhirubhai Ambani Group VISA#27DCB Thank You