#1DhanlaxmiBank established 1927 INVESTOR PRESENTATION June-2021#2COMPANY OVERVIEW VISION Banking on Relationships forever 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. Dhanlaxmi Bank D Dhanlaxmibark Incorporated in 1927 at Thrissur, Kerala. Over the 93 years that followed, Bank has earned the trust and goodwill of clients. 520 touch points including 245 branches, 258 ATMs and 17 BCs across 14 States and 1 Union Territory; our focus has always been on customer services and personalized relationships. Total Employees: 1644 INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#3COMPANY OVERVIEW 2021 2020 2013 to 2018 2012 2011 2010 2009 Consistent profit for last twelth Quarters, Capital adequacy Ratio reaching a high of 14.57% Highest ever profit of Rs 65.78Crs, Raised a total of Rs 7677.73 million during 2013 to 2018 through Preferential allotment/ Qualified Institutional Placement as Equity/Tiire Il Bonds. Awarded the Asian Banker Technology Implementation award - International award for Best branch automation Awarded the "Best Mid-sized Bank in Growth Category" by Business Today- KPMG survey. Awarded the Information Week EDGE Award 2011 for IT transformation 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. Recorded net profit of Rs.574.5 Million. Reached a milestone of 200 branches with Kolkata branch in East Region. Total business of Rs. 75,000 Million. Second Rights Issue. All branches under core banking technology. Introduced Core Banking 2008 2003 2000 Installed first ATM 1996 1989 1977 1975 1927 Raised Rs. 240 million in IPO and listed Equity Shares on the National Stock Exchange, Bombay Stock Exchange and the Cochin Stock Exchange First branch outside Southern region was opened in Mumbai. Designated as scheduled commercial bank by the Reserve Bank of India (RBI). Set up the first branch outside the home state of Kerala, at Mount Road, Chennai -Tamilnadu Incorporated in Thrissur, Kerala INVESTOR PRESENTATION June-2021 Dhanlaxmi Bank established 1927#4PROFILE OF BOARD OF DIRECTORS 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) Mr 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 J.K retired as Chief General Manager of Stressed Assets Resolution Group of SBI. He is an MBA and graduate in Agriculture and has also passed the CAIIB from Indian Institute of Bankers. Mr. 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. INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#5PROFILE OF BOARD OF DIRECTORS Mr. G. Jagan Mohan (RBI Additional Director) Mr. 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. 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. INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#6PROFILE OF BOARD OF DIRECTORS 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) Mr. 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. INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#7PROFILE OF KEY MANAGEMENT PERSONNEL Mr. Ramesh AJ Chief Financial Officer Experience of 34 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. INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#8PROFILE OF SENIOR MANAGEMENT Mr. L. Chandran General Manager 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. Mr. John Varughese (Head IT, Digital Banking) Mr. Manoj Kumar S Chief Credit Officer 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 Mr. Rajan Sleeba Head-Human Resources Department Mr. Surendran A V Head-Treasury 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) INVESTOR PRESENTATION June-2021 Dhanlaxmi Bank established 1927#9PROFILE OF SENIOR MANAGEMENT Mr. Santoy John Chief Compliance Officer Mr. Satheesan V Chief Vigilance Officer Mr. Binoy B.S Head- Internal Audit 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 23 years of experience in banking sector including working with Indian Overseas Bank. In addition to being a Law graduate he also holds Master of Business Law and MBA (International Business). Has the Additional charge of Legal Department. 25 years of experience in banking sector including working with South Indian Bank Ltd. He is a Post Graduate in law (LLM) and Certified Associate of the Indian Institute of Bankers (CAIIB). Worked as AGM Credit Monitoring with Additional charge of Chief Credit Officer. Mr. Sreekumar M P Regional Head-North Mr. Sunny George Regional Head-West 29 Years of experience in banking sector including working with South Malabar Gramin Bank. He is a Science Graduate and Certified Associate of the Indian Institute of Bankers (CAIIB). Worked as Regional Head Thiruvananthapuram and Kozhikode. He had also served as the Chief Compliance Officer and Head - Inspection prior to the present assignment, 27 Years of experience in banking sector including his stint with Catholic Syrian Bank. A graduate as well as a Certified Associate of the Indian Institute of Bankers (CAIIB), he also holds a PG Diploma in Marketing &Sales, Diploma in Treasury Investments and MBA(International Business). Worked as Regional Head Tamil Nadu. INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#10OVERVIEW OF DISTRIBUTION "520 touch points including 245 branches, 258 ATMs and 17 BCs across 14 States and 1 Union Territory; our focus has always been on customer services and personalizing relations" Kerala Tamil Nadu Maharashtra 12 10 34 INVESTOR PRESENTATION June-2021 State % of distribution 57.96 13.88 7.76 Karnataka 4.9 Andhra Pradesh 3.67 Telangana 2.45 Gujarat 2.04 NCT of Delhi 1.63 Uttar Pradesh 1.63 West Bengal 1.22 Haryana 0.82 Rajasthan 0.82 Chandigarh 0.41 Madhya Pradesh 0.41 Punjab 0.41 Population Kerala Tamil Nadu No of Branches 57.96 13.88 Maharashtra Karnataka 7.76 4.9 DhanlaxmiBank established 1927#11SHAREHOLDING PATTERN SHAREHOLDING 1% & ABOVE (AS ON JUNE 30, 2021) Share Holder B RAVINDRAN PILLAI GOPINATHAN CK % of Stake 9.999 7.498 YUSUFFALI MUSALIAM VEETTIL ABDUL KADER 4.999 KAPILKUMAR WADHAWAN 4.999 VESPERA FUND LIMITED 4.416 NICHE FINANCIAL SERVICES PVT LTD 3.506 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 NICHE FINANCIAL SERVICES PVT LTD 2.134 SUASHISH DIAMONDS LIMITEDASHISH 1.709 RAMESHKUMAR GOENKA 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 INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#12COMPREHENSIVE RANGE OF PRODUCTS Deposits 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 Other Services Technology Related Products Distribution of General and Retail & Corporate Internet Life Insurance products. Mutual Fund Distribution Depository Services Live Stock Loan Locker Services Forex Services 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 Bankers to Issue /ASBA Cash Management Services/ Aadhaar Based Payments Import Export related services Sovereign Gold Bonds PAN Card Services Banking Missed Call Services Mobile Banking IMPS e-IT Return Filing Remittances - Real Time Gross Settlement (RTGS) / National Electronics Funds Transfer (NEFT)/MTS Online trading Point of Sale Pay Smart Bill Payment New Product under Cash Credit- DHANAM GST BUSINESS LOAN is also available INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#13PERFORMANCE OVERVIEW Continuous 12th Quarter Profit, Q1 net profit Rs 6.79 Crores Profitability ROA improved to 0.21% as on 30.06.2021. (YoY) ROE improved to 3.13% as on 30.06.2021. (YoY) Growth Momentum Total business grew by Rs.728 Crs to Rs. 18575 Crs as on 30th June 2021 from Rs.17847 crs as on 30th June 2020. Deposit record a YOY growth of 4.94% as on 30.06.2021. NRE deposits increased by 46Crs to Rs 1907 Crs as on 30th June 2021 YoY Capitalized & Strong Liquidity position Strong capital Comfort with a CRAR of 14.57% as on 30.06.2021. Tier I ratio of 11.75% LCR of 1084.1%. Asset Quality Net NPA decreased from 4.76% as on 31.03.2021 to 4.58% as 30.06.2021. PCR ratio of 75.66% INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#14CRAR & LIQUIDITY PERFORMANCE HIGHLIGHTS-CRAR CAPITAL ADEQUACY RATIO 10.71 10.62 10.99 11.31 11.75 13.94 13.72 3.23 3.10 3.17 3.16 2.82 14.57 14.47 14.16 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Tier I Tier II RWA TO TOTAL ASSETS 49.38 48.74 46.77 46.25 779.62 45.00 LIQUIDITY COVERAGE RATIO (LCR) 664.23 1078.3 752.69 1084.1 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#15PROFITABILITY RATIOS OPERATING PROFIT Q o Q 43 34 32 9 Q1 FY21 Q2 FY21 Q3 FY21 -4 Q4 FY21 Q1 FY22 6 NET PROFIT QOQ 14 12 5 7 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#16BUSINESS OVERVIEW TOTAL DEPOSITS (Amt in Cr) COST OF DEPOSITS % 11109 11436 11456 11712 11658 5.58 5.54 5.28 5.17 4.64 7771 7865 7756 7804 7799 3338 3571 3700 3908 3859 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 30 TD CASA TREND IN MOVEMENT OF CASA & RETAIL TD % 33 32 31 53 54 52 51 51 T Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#17BUSINESS OVERVIEW ADVANCE PORTFOLIO- GROSS ADVANCE (Amt in Crs) 6738 7060 6837 7122 6917 100% 1803 1750 80% 1676 1746 1738 60% 1329 1646 1782 1862 1822 968 952 40% 958 1005 917 750 766 704 799 735 20% 1888 1946 1717 1710 1705 0% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Corporate Agri & Micro SME Gold Retail Corporate 25% Gold Loans 26% Agri and MFI 11% Retail 25% (excluding Gold Loan) SME 13% INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#18BUSINESS OVERVIEW FY INCOME & MARGINS Net Interest Non Interest Net Interest NET INTEREST INCOME Income Income Margin (%) 91 89 79 88 80 Q1FY 21 79 42 2.77 71 Q2FY 21 89 21 2.88 Q3FY 21 91 49 2.95 Q4FY 21 71 30 2.82 Q1FY 22 80 21 2.66 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 NET INTEREST MARGIN % 2.95 2.88 2.77 2.82 2.66 42 NON INTEREST INCOME 21 49 49 30 21 21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#19BUSINESS OVERVIEW YIELD ON ADVANCE 10.28 10.29 10.13 9.99 INCOME & MARGINS 9.12 COST INCOME RATIO 77.69 70.52 66.67 64.38 91.15 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#20BUSINESS OVERVIEW Particulars Gross NPA ratio (%) Net NPA ratio (%) Provision Coverage ratio (%) ASSET QUALITY 30-06-2020 30-09-2020 (Reviewed) (Audited) 31-12-2020 (Reviewed) 31-03-2021 (Audited) 30-06-2021 (Reviewed) 6.89 6.36 5.78 9.23 9.27 2.18 1.66 1.11 4.76 4.58 86.78 89.32 92.68 74.20 75.66 GROSS NPA RATIO (%) 6.89 6.36 5.78 9.23 9.27 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 NET NPA RATIO (%) 2.18 1.66 1.11 4.76 4.58 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 PROVISION COVERAGE RATIO(%) 92.68 89.32 86.78 75.66 74.2 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 June-2021 DhanlaxmiBank established 1927 INVESTOR PRESENTATION#21BUSINESS RESULT Particulars 30.06.2020 (Reviewed) 31.03.2021 30.06.2021 (Audited) (Reviewed) Growth YOY Growth% Interest Income 236.65 930.75 218.11 (18.54) (7.84) Interest Expenses 157.59 601.1 138.60 (18.99) (12.05) Net Interest Income 79.06 329.65 79.50 0.44 0.56 Non Interest Income 41.97 141.48 20.92 (21.05) (50.16) Operating Expenses 77.92 366.04 91.53 13.61 17.47 Operating Profit 43.11 105.09 8.89 (34.22) (79.38) Provisions and Contingencies 37.02 67.9 2.10 (34.92) (94.32) Net Profit 6.09 37.19 6.79 0.70 11.44 INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#22SUMMARY OF FINANCIALS - BALANCE SHEET Particulars CAPITAL AND LIABILITIES Capital Reserves and Surplus Deposits Borrowings Other Liabilities and Provisions 30.06.2020 (Reviewed) 31.03.2021 30.06.2021 (Audited) (Reviewed) 253 253 253 580 611 618 11109 11712 11658 178 150 150 318 370 239 12438 13096 12918 TOTAL ASSETS Cash and Balances with Reserve Bank of India 482 602 638 Balances with Banks and Money at call and short notice 668 383 325 Investments 3929 4439 4525 Advances 6411 6787 6576 Fixed Assets 212 225 225 Other Assets * 736 660 628 TOTAL 12438 13096 12918 * Out of Which RIDF/RHF/MSME Deposits 353 268 249 Contingent Liabilities Bills for collection 463 413 428 312 301 306 INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#23WAY FORWARD Increasing CASA with quality acquisition. Liability Strategy Improve value of account through sale of other products PROFITABILITY APPROACH Business Strategy Optimising Cost Focus on Non Interest Income Other Initiatives INVESTOR PRESENTATION Growth in Retail Deposits. 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 competitive pricing Cost Rationalization & monitoring Focus on recovery efforts using provisions of IBC, RR, OTS etc Effective Cross Selling of Third party products with increased number of products Increase in Non Fund based business Plugging income leakage. Leveraging benefits of IT Transformation -Digital Onboarding Publicity of various facilities / products available with the bank. Effective use of data mining tools for product selling. Improving Brand Visibility June-2021 DhanlaxmiBank 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. 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. 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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. INVESTOR PRESENTATION June-2021 DhanlaxmiBank established 1927#25THANK YOU DhanlaxmiBank established 1927 Banking on Relationships forever