#1DCB BANK Investor Presentation - Q3 FY 2013 January 2013 Development Credit Bank Limited#2Disclaimer DCB BANK 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 other 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 of 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. Financial numbers are rounded off to nearest whole number Private & Confidential Development Credit Bank Limited 2#3DCB Bank - Overview DCB Bank - at a glance DCB BANK • Development Credit Bank Ltd (DCB Bank) http://www.dcbbank.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 89 branches across 28 cities and 296 ATMs Comprehensive product range & scalable infrastructure • Business model focused on achieving a balance between Micro SME, SME, Retail Mortgages, Commercial Vehicle, Gold Loans, mid-Corporate and Agri / Inclusive Banking Comprehensive range of banking products across all businesses Modern systems and infrastructure to support growth- Finacle, FinnOne, CMS, Internet and Mobile banking Traditional loyal customer base • Traditional sticky customer base helped by presence of branch network in key areas of Maharashtra, Gujarat and AP • Provides DCB Bank access to low cost deposits Focus on building low cost franchise Continued focus on building a low cost Deposits and strong capital position CASA of 28.87% and CRAR of 13.71% under Basel II Steady improvement in credit ratings • Crisil rating (Long term): BBB + / Positive, Crisil rating (Short term): A1 and Brickwork Ratings: BWR A- (Stable) Robust promoter background Pedigreed board and experienced management team Private & Confidential • 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 18.48% stake in DCB • 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 For detailed 'Overview', please refer to pages 28 - 32 Development Credit Bank Limited 3#4Financial Performance DCB BANK Private & Confidential Development Credit Bank Limited 4#5Highlights DCB BANK Q3 FY Q3 FY Inc/ Inc / INR mn FY 2012 FY 2011 2013 2012 (Dec) (Dec) Net Profit 269 156 72.1% 551 214 157.0% Total Income 1,009 854 18.2% 3,281 3,012 8.9% Operating Profit 318 225 41.1% 838 861 (2.6%) Provisions (49) (69) 29.3% (287) (646) 55.57% Cost to Income Ratio 68.52% 73.64% 74.45% 71.43% INR mn Deposits CASA NRI Deposits Advances INR mn CASA Ratio Gross NPA Ratio Net NPA Ratio Provision Coverage Ratio Credit/Deposit Ratio ROA ROE Private & Confidential December 31, 2012 December 31, 2011 75,582 61,912 21,823 20,478 4,544 2,413 59,644 43,064 December 31, 2012 December 31, 2011 28.87% 33.08% 3.80% 5.67% 0.73% 1.03% 88.04% 87.38% 78.91% 69.56% 1.14% 0.77% 11.66% 9.65% 5 Development Credit Bank Limited#6Steady Improvement in Profits (881) (785) 214 Net Profit / Loss * 551 FY 2009 FY 2010 FY 2011 FY 2012 * Net Profit / (Loss) represents post tax numbers Private & Confidential DCB BANK 221 189 173 156 INR mn 269 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Development Credit Bank Limited 9#7Improvement in Income, quality 1,972 Net Interest Income DCB BANK INR mn 720 2,277 670 639 597 1,891 570 1,416 FY 2009 FY 2010 FY 2011 FY 2012 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Other Income INR mn 289 281 275 275 257 1,201 1,121 1,075 1,004 FY 2009 FY 2010 FY 2011 FY 2012 Private & Confidential Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Development Credit Bank Limited 7#8Staff Cost and Other Cost Staff Cost DCB BANK INR mn 350 1,246 341 329 317 310 1,044 1,064 881 FY 2009 FY 2010 FY 2011 FY 2012 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Other Cost INR mn 339 341 337 1,376 312 303 1,197 1,127 1,088 FY 2009 FY 2010 FY 2011 FY 2012 Private & Confidential Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Development Credit Bank Limited 8#9Operating Income and Cost to Income Operating Income DCB BANK INR mn 1,009 945 3,281 914 3,173 3,012 854 851 2,491 FY 2009 FY 2010 FY 2011 FY 2012 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Operating Cost INR mn 73.64% 71.90% 72.85% 71.95% 68.52% 76.27% 80.62% 74.45% 680 692 666 71.43% 629 612 2,420 2,443 2,152 2,008 FY 2009 Private & Confidential FY 2010 FY 2011 FY 2012 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 9 Development Credit Bank Limited#10Operating Profit Operating Profit DCB BANK INR mn 753 483 860 265 838 239 248 225 FY 2009 FY 2010 FY 2011 FY 2012 1,634 1,268 FY 2009 Private & Confidential FY 2010 646 FY 2011 287 FY 2012 318 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Provisions 69 Q3 FY12 INR mn 66 99 59 49 44 Q4 FY12 Q1 FY13 * 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 Development Credit Bank Limited Q2 FY13 Q3 FY13 10 10#11Growth in chosen Businesses continue DCB BANK Mar 31, Mar 31, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, INR mn 2010 2011 2011 2012 2012 2012 2012 CASA 16,927 19,755 20,478 20,347 20,662 21,723 21,823 Retail Term 23,056 27,085 31,946 34,320 36,721 38,888 42,084 Deposits Mortgages 4,118 10,811 15,102 15,510 ☐ 17,889 19,494 21,296 Commercial 1,951 727 195 1,048 968 966 1,050 Vehicle SME + 6,004 10,219 12,579 14,038 13,943 14,930 15,035 Micro SME Agri & Inclusive 8,583 8,502 4,169 8,014 7,244 6,115 5.856 Banking Corporate 11,095 11,153 8,907 11,941 12,599 13,097 14,120 Banking Private & Confidential Development Credit Bank Limited 11 11#12Balance Sheet Total Assets DCB BANK INR mn 96,436 91,002 92,983 86,769 82,610 74,129 59,430 61,367 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 Net Advances* INR mn 59,644 56,710 52,844 54,491 43,064 42,817 32,740 34,597 Mar 31, 2011 Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 Mar 31, 2009 Mar 31, 2010 Net Advances - Gross advances less (net of) provisions Private & Confidential Development Credit Bank Limited 12#13Diversified Portfolio Portfolio* as on Mar 31, 2010 Mortgages 12% Others CVICE/STVL 8% Personal Loans 3% 3% AIB 25% SME+M SME 17% Corporate Banking 32% Portfolio* as on Mar 31, 2012 PL/CE/STVL 0.05% Commercial Vehicle Mortgages 29% 2% AIB 15% Mortgages 36% Others 4% SME+M SME 27% DCB BANK Portfolio* as on Mar 31, 2011 Mortgages 25% CVICE/STVL 2% Personal Loans 0.2% AIB 20% Others 3% Corporate Banking SME+M SME 24% 26% Corporate Banking Others 2%. 23% Portfolio* as on Dec 31, 2012 Commercial Vehicle 2% Gold Loan 1% SME + MSME 25% * AIB - Agri & Inclusive Banking, MSME - Micro SME, PL / CE / STVL -Personal Loan, Construction Equipment and Small Ticket Vehicle Loan Private & Confidential Development Credit Bank Limited AIB 10% Corporate Banking 24% 13#14Build Stable Deposit Base - Focus on CASA Deposits DCB BANK INR mn 3,630 3,075 2,705 3,178 2,208 50,129 46,573 2,601 44,927 40,801 1,590 38,256 3,957 33,746 29,356 28,101 14,411 19,755 20,478 20,347 20,662 21,723 21,823 16,927 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 CASA ■Term Deposits Other Deposits Retails Deposits Vs Total Deposits Mar 31, 2009 Mar 31, 2010 67.53% Mar 31, 2011 Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 81.54% 81.17% 82.91% 84.42% 82.72% 83.22% 82.96% CASA Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 31.01% 35.36% 35.21% 33.08% 32.12% 30.25% 30.44% 28.87% Access to low cost stable funding source to support Advances growth without undue reliance on volatile wholesale funding Private & Confidential Development Credit Bank Limited 14#15Deposits Per Branch Retail CASA & Retail Term Deposits DCB BANK INR mn 62,701 59,394 56,492 51,333 53,482 42,083 45,540 36,721 38,888 39,034 31,946 34,320 31,380 27,085 23,056 18,132 18,455 19,387 19,162 19,771 20,506 20,618 13,248 15,978 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2011 Dec 31, 2012 Retail CASA ■Retail Term Deposits Total Retail Deposits / Branch INR mn 86 84 82 87 447 89 473 427 80 390 409 339 80 288 80 227 231 236 228 230 236 232 200 166 Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Dec 31, 2011 ■Retail Term Deposits / Branch Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 No of Branches Private & Confidential Development Credit Bank Limited 15#16Strong Provision Coverage Key Ratios DCB BANK 8.69% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 91.17% 87.64% 82.50% 85.55% 87.89% 87.38% 88.50% 89.25% 88.04% 70.04% 5.85% 5.90% 5.75% 5.67% 3.11% 1.19% 0.96% 0.97% 1.03% 4.40% 4.18% 3.86% 3.80% 0.57% 0.75% 0.68% 0.73% Mar 31, 2010 Mar 31, 2011 Jun 30, 2011 Sep 30, 2011 Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 Coverage Ratio - Bank Coverage Ratio - PL Gross NPA% Net NPA% INR mn Mar 31, 2010 Mar 31, 2011 Dec 31, 2011 Mar 31, Jun 30, 2012 2012 Sep 30, 2012 Dec 31, 2012 Personal Loans 1,694 1,293 1,222 1,196 968 945 926 CVICE/STVL* 599 452 350 322 297 278 261 Corporate 594 588 686 627 624 499 506 Others 305 303 306 273 473 538 646 Gross NPA 3,192 2,636 2,564 2,418 2,362 2,260 2,339 Net NPA** 1,076 412 443 302 409 384 435 * CV / CE / STVL represents Commercial Vehicle, Construction Equipment and Small Ticket Vehicle Loan 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) ** Private & Confidential Development Credit Bank Limited 16#17Yield, Cost of Funds and NIM Net Interest Margin DCB BANK 3.41% 3.37% 3.38% 3.25% 3.24% 3.13% 3.10% 3.12% 3.18% 2.79% FY 2010 FY 2011 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 FY 2012 Q1 FY13 Q2 FY13 Q3 FY13 Yield on Advances, Base Rate & Cost of Funds 12.93% 12.66% 12.91% 12.60% 12.71% 12.69% 12.73% 12.33% 11.86% 11.12% 10.50% 10.50% 10.50% 10.50% 10.50% 10.50% 10.00% 9.50% 9.00% 7.73% 7.80% 7.74% 7.57% 7.16% 7.11% 6.98% 6.67% 6.44% 5.83% FY 2010 FY 2011 Q1 FY 12 Q2 FY 12 Q3 FY 12 Yield on Advances Q4 FY 12 Cost of Funds FY 2012 Q1 2013 Q2 2013 Q3 FY 13 Base Rate Private & Confidential Development Credit Bank Limited 17#18Capital Adequacy Ratios Capital Adequacy Ratios – Basel II DCB BANK 13.30% 1.80% 14.85% 2.92% 13.25% 2.15% 13.00% 1.85% 15.41% 1.60% 14.49% 1.31% 13.97% 1.26% 13.71% 1.08% 13.81% 11.50% 11.93% 12.71% 12.63% 11.10% 11.15% 13.18% Mar 31, 2009 Mar 31, 2010 Mar 31, 2011 Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 Tier Tier II In Q3 FY 2013 - DCB Bank raised INR 402 million through Preferential Allotment to increase its Tier I Capital Private & Confidential 18 Development Credit Bank Limited#19Other Income DCB BANK INR mn FY 2010 FY 2011 Q3FY12 Q4FY12 FY 2012 Q1FY13 Q2FY13 Q3FY13 Commission, exchange 682 683 202 230 786 206 217 222 and brokerage Sale of investments 178 253 18 26 118 38 22 27 Sale of land, buildings (3) 11 (13) (28) (2) (1) and other assets Exchange transactions 68 90 19 21 69 18 6 20 Bad Debt Recovered 14 6 2 7 10 10 19 14 Miscellaneous income 136 78 16 10 49 5 12 6 Total 1,075 1,121 257 281 1,004 275 275 289 Private & Confidential 19 Development Credit Bank Limited#20Treasury DCB BANK INR mn Mar 31, 2010 Mar 31, 2011 Mar 31, 2012 Dec 31, 2012 SLR 15,789 17,512 20, 219 21,501 Non-SLR 4,390 5,439 4,959 5,562 Total Investments * 20,179 22,951 25,178 27,063 HTM 16,890 18,847 20,845 21,455 AFS 3,263 3,029 3,541 5,008 HFT 26 1,075 792 600 Total Investments * 20,179 22,951 25,178 27,063 * Represents Net investments (HTM - Held To Maturity, AFS - Available For Sale, Held For Trading) Private & Confidential 20 Development Credit Bank Limited 20#21Balance Sheet INR mn Shareholder's Equity Deposits Borrowings1 Other Liabilities & Provisions 1 DCB BANK Mar 31, Mar 31, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, 2010 2011 2011 2012 2012 2012 2012 5,990 6,187 6,561 8,585 8,772 8,990 9,660 47,873 56,102 61,912 63,356 68,294 71,370 75,582 5,035 8,607 10,455 11,235 10,101 8,801 7,175 2,447 3,205 3,652 3,565 3,807 3,792 3,990 Cash, Inter-bank, etc 3,324 4,871 7,643 4,566 5,804 5,334 5,171 Investments 20,179 22,951 27,246 25,178 26,367 26,312 27,063 Advances 34,597 42,817 43,064 52,844 54,491 56,710 59,644 Fixed Assets 1,358 1,275 1,809 1,846 1,844 2,376 2,370 Other Assets 1,909 2,215 2,847 2,335 2,496 2,250 2,188 Credit Deposit Ratio 72.27% 76.32% 69.56% 83.41% 79.79% 79.46% 78.91% INR mn CASA Other Deposits Total Deposits CASA Ratio Mar 31, Mar 31, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, 2010 2011 2011 2012 2012 2012 2012 16,927 19,755 20,478 20,347 20,662 21,723 21,823 30,946 36,347 41,434 43,009 47,632 49,647 53,759 47,873 56,102 61,912 63,356 68,294 71,370 75,582 35.36% 35.21% 33.08% 32.12% 30.25% 30.44% 28.87% 1 Subordinated Debt included in Borrowings since March 31, 2010 as per RBI guidelines, same included in Other Liabilities and Provisions in earlier periods Private & Confidential Development Credit Bank Limited 21 21#22Profit & Loss DCB BANK Q3 Q4 Q1 Q2 Q3 INR mn FY 2010 FY 2011 FY12 FY12 FY 2012 FY13 FY13 FY13 Net Interest Income 1,416 1,891 597 570 2,277 639 670 720 Other Income 1,075 1,121 257 281 1,004 275 275 289 Operating Income 2,491 3,012 854 851 3,281 914 945 1,009 Operating Expenses (2,008) (2,152) (629) (612) (2,443) (666) (680) (692) Operating Profit 483 860 225 239 838 248 265 318 Total Provisions (1,268) (646) (69) (66) (287) (59) (44) (49) PAT (785) 214 156 173 551 189 221 269 Cost Income Ratio 80.62% 71.43% 73.64% 71.90% 74.45% 72.85% 71.95% 68.52% Private & Confidential Development Credit Bank Limited 22 22#23Business Strategy DCB BANK Private & Confidential Development Credit Bank Limited 23 223#2489 Branches, Strong Presence in the Western Region DCB BANK Branch Network ANDHRA PRADESH: (10) Kerala: (1) Hyderabad (8) Warangal (2) GOA: (4) Mapusa (1) Margao (1) Vasco-Da-Gama (1) Panaji (1) GUJARAT: (16) Ahmedabad (3) Ankleshwar (1) Bhuj (1) Daman (1) Dediapada (1) Gandhinagar (1) Kadodara (1) Mandvi (1) Kochi (1) MADHYA PRADESH: (2) Itarsi (1) Pipariya (1) MAHARASHTRA: (35) Aurangabad (1) Mumbai & Its Suburbs (28) Nanded (1) Nashik (1) Pune (4) NEW DELHI: (6) ☐ Netrang (1) ■ Rajkot (1) Chandni Chowk (1) Connaught Place (1) Kapashera Road (1) Greater Kailash II (1) Kondli (1) Preet Vihar (1) ORISSA: (1) ☐ Bargarh (1) Hinjilicut (1) ■ Existing Branches 89 Sidhpur (1) Silvassa (1) Surat (1) Vadodra (1) • New Licenses 5 PUNJAB: (1) Vapi (1) DCB ATMs 296 HARYANA: (1) **Network * Branch locations as shown on the map are approximate may not represent the exact location ** Tie up with Euronet enables DCB Bank customers to access VISA ATMs across the world 35,000 + ☐ Gurgaon (1) Private & Confidential Development Credit Bank Limited KARNATAKA: (4) Bengaluru (4) Ludhiana (1) RAJASTHAN: (1) Jodhpur (1) TAMIL NADU: (2) Chennai (2) WEST BENGAL: (3) Kolkata (3) 24 24#25Products & Services Retail Banking DCB BANK SME, Corporate Banking, NBFCs, Co-operative Banks Deposit Products: Current and Savings Loans: ◉ ◉ Term Deposits ☐ NRI Deposits Corporate Salary ■ ☐ POS Terminals ■ ■ Lockers ■ Cards: ■ ATM Card ■ Debit Card √**** Travel Card** Secured Card ■ Credit Card* ■ Co-branded Prepaid Card** Payments: ■ Remittances ☐ Auto Loans* Commercial Vehicle* Construction Equipment* Gold Loans Home Loans Loan Against Property Loan Against Shares Tractor Loans Wealth Management: ■ Investment Advice Mutual Funds Life Insurance and General Insurance Services: Current Account Trade Current Account Working Capital Term Loans Supply Chain Portfolio Buyout Import/Export ◉ Bills Collection Foreign Exchange Letters of Credit Guarantees Cash Management*** RTGS/NEFT ■ Internet Banking Treasury, NBFCs, Co-operative Banks 24/7 Phone Banking ■ Bill Utility Payments Any Branch Banking ■ RTGS / NEFT Statutory Reserves Management ☐ On-line Share Trading/Demat Privilege Banking ☐ Liquidity Management ☐ Tax Payments ◉ Trading in Government Securities ■ Visa Money Transfer Internet Banking ☐ Foreign Exchange " Corporate Bonds Mobile Banking ◉ CDs Equity Investment DCB offers a comprehensive range of products and services *Offered to existing customers only. **DCB Bank launched its prepaid card with ITZ Cash, which is sourced from select ITZ outlet. *** DCB Bank 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 Private & Confidential Development Credit Bank Limited 25#26Business Strategy ◉ DCB BANK Grow Micro SME, SME, Retail Mortgages, Commercial Vehicle, Gold Loans, mid- Corporate and Agri & Inclusive Banking with a "customer centric approach". Concentrate on secured lending & diversified portfolio ■ Retail - branch centric - Low cost deposits (CASA/Term) - Secured lending (Home loans, Loan against property, Gold Loans, Loan Against Term Deposit) ◉ - Micro SME - Traditional customer base - Third party fee income 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 Private & Confidential Development Credit Bank Limited 26#27Overview DCB BANK Private & Confidential Development Credit Bank Limited 27 27#28Key Milestones 1981 1984 ☐ Amalgamation of Masalawala Co- operative Bank and Ismailia Co- operative Bank into Development Co- operative Bank Ltd. In Existence Since 1930s DCB BANK Multi-State Co- operative Bank 1988 ■ Acquired "Scheduled" status from Reserve Bank of India 1995 Conversion to Development Credit Bank Ltd. ■ Secured Foreign Exchange License & became an Authorized Dealer 2004 ■ Classified as a "New Generation Private Sector Bank" by the RBI Tier I Capital Raising 2005 ■ Private Equity Investment by AKFED (Principal Promoter) of INR 1.38 bn in March 2005 2006 ☐ Private Equity investment of INR 519.9 mn in February 2006 2006 ■ Raised INR 1.86 bn through IPO, issue oversubscribed 35 times Private & Confidential 2007 ■ Preferential Allotment of INR 2.8 bn in Aug 2007 Development Credit Bank Limited 2006 IPO 2009 2012 ■ Raised INR 810 mn through QIP in ■ Raised INR 940 mn November 2009 subscribed through QIP and INR 988 mn through Preferential Allotment in March 2012. The Bank raised INR 402 mn via Preferential Allotment in December 2012 28#29Strong Investor Profile Shareholding Pattern (December 31, 2012) DCB BANK Key non-promoter shareholders Tano Mauritius India FVCI II : 4.77% WCP Holdings III : 4.70% DCB BANK Shareholding Pattern Others (Non- Institutions)** 10.90% Aga Khan Fund for Economic Development Private & Confidential *AKFED and PJI 18.48% Individuals 36.56% ■ The South India Bank Ltd : 3.36% ***Institutions 23.60% ☐ Bodies Corporate 10.46% *AKFED - Aga Khan Fund for Economic Development and PJI Platinum Jubilee Investment Ltd. **Includes Clearing Members (0.76%), Non Resident Indians (2.45%), Foreign Corporate Bodies (7.65%), Directors and their relatives (0.03%) ***Institutions includes 10.21% held by FII ◉ ☐ ◉ Al Bateen Investment Co LLC: 2.96% Tata Capital Financial Services Ltd: 2.63% TVS Shriram Growth Fund India : 2.51% Sundaram Mutual Fund A/c Sundaram Select Midcap : 2.22% HDFC Ltd: 1.62% Bajaj Allianz Life Insurance Company Ltd.: 1.47% Satpal Khattar & Shareen Khattar: 1.30% ICICI Prudential Life Insurance Company Ltd.:1.23% Dimensional Emerging Markets Value Fund: 1.12% Girdharilal V Lakhi and Vandana G lakhi: 1.02% Sundaram Mutual Fund A/c Sundaram Equity Multipier Fund: 1.01% DCB Bank 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 Development Credit Bank Limited 29#30Experienced Board 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. Amin Manekia Altaf Jiwani C Narasimhan Darius Udwadia Imran Contractor Keki Elavia Murali M Natrajan Managing Director & CEO Nalin Shah Nasim Devji Suhail Nathani S Sridhar -> Sukh Dev Nayyar Worked in India & Abroad Private & Confidential DCB BANK Pioneered in concept of automatic beverage vending machines in India. More than 20 years in various capacities in different institutions of AKDN for the social-economic upliftment of the poor. With expertise in Foreign Exchange, Risk Management and Trade Finance. He is currently in-charge of two business segments namely power and carbo-chemicals. A professional Banker. With SBI, held very senior level responsibilities across all important functions. He was a permanent invitee of SBI's Central Board and Audit Committees and on the Boards of SBI Group Cos. Solicitor & Advocate of the Bombay High Court and Solicitor of the Supreme Court of England and Wales. Founder Partner of Udwadia and Udeshi. Independent Director on the Boards of several corporate entities. Qualified Chartered Accountant and Cost Accountant. Advisor to several Corporate Managements and High Net worth Individuals on investment strategy and acted as consultant to reputed Mutual Fund. Rich experience in accounting, audit and finance. Partner of over 37 years with M/s. Kalyaniwala & Mistry, a C. A. firm. Independent Director on the Boards of several corporate entities and boards of Public Trusts. Standard Chartered Bank, Citibank, American Express - *29 years experience. Retired partner of Deloitte Haskins & Sells and S. B. Billimoria Co. Member of Expert Advisory Committee and Past member of Accounting Standards Board of ICAI and Company Law Committee of the Bombay Chambers. Fellow of the Institute of Chartered Accountants of England & Wales (FCA). Currently working as Managing Director of Diamond Trust Bank of Kenya & Group CEO of Diamond Trust Banks in East Africa. 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. Retired as Chairman and Managing Director of Central Bank of India. Has also served as the Chairman and Managing Director of National Housing Bank (NHB) and Executive Director of EXIM Bank. Started career with SBI. Associated with ANZ Grindlays Bank plc for over 30 years. Last assignment with Grindlays as Head - Corporate Banking & Investment Banking. Independent Director on the Boards of Diamond Trust Bank Kenya & Greaves Cotton. Development Credit Bank Limited 30#31Strong Management Team Ajay Mathur Head Collections CGSL and Citibank - 20 yrs exp DCB BANK Abhijit Bose Head - Retail Assets & Strategic Alliances Standard Chartered Bank, Citibank, Eldeco Housing Industries and GIC Housing *20 yrs exp. Gaurav Mehta Head-Marketing, Corporate Communication & Public Relations HSBC India, Convergys, GE Capital and Taj Group of Hotels - 17 yrs exp. J. K Vishwanath Chief Credit Officer Fullerton India, Citigroup and Eicher Group - 19 yrs exp. Bharat Sampat Chief Financial Officer ABN Amro Bank, Standard Chartered Bank, ANZ Banking Group, Hoechst India *28 yrs exp. Manoj Joshi Business Head - SME & MSME Banking ICICI Bank, Epcos Ferrites and Uniworth Group 17 yrs exp. Narendranath Mishra Head - AIB ICICI Bank and Rallis India - 13 yrs exp. Rajesh Verma Head Treasury & Corporate Banking - State Bank of India - *33 yrs exp. Murali M. Natrajan Managing Director & CEO Standard Chartered Bank, Citibank, American Express - *29 yrs exp. Head Praveen Kutty Retail & SME Banking Citibank *21 yrs exp. Sachin Patange Chief Compliance Officer Reserve Bank of India - 22 yrs exp. R. Venkattesh Head HR, IT & Operations Standard Chartered Bank, ANZ Grindlays Bank, Hindustan Petroleum - 22 yrs exp. Ravi Kumar Chief Internal Auditor Samba Financial Group, Ernst & Young - *15 yrs exp. Sukesh Bhowal Head - Mortgages Times Bank Ltd., HSBC Ltd, Citibank and HDB Financial Service LTd. - 16 yrs exp. Sridhar Seshadri Financial Controller ICICI Bank, Syndicate Bank and State Bank of India - 30 yrs exp. Hemant Barve Company Secretary Ritchie Steuart Investments and Union Bank of India - 38 yrs exp. Private & Confidential * Worked in India & Abroad *Worked in India & Abroad Only key profiles represented 31#32Ratings DCB BANK Jul 31, 2009 Sep 30, 2011 Dec 31, 2012 CRISIL - Long Term BBB/Stable BBB +/Stable BBB +/Positive - Short Term P1 A1 A1 Brickworks BWR A-/Stable BWR A-/Stable BWR A-/Stable Private & Confidential 32 Development Credit Bank Limited#33Private & Confidential Thank you DCB BANK 33 Development Credit Bank Limited