Capitaline

Analyst Meet / AGM 17-Apr-18

Conference Call

DCB Bank

Expects to reduce cost-to-income ratio to 55% by Q4FY2019

DCB Bank conducted a concall on 16 April 2018 to discuss financial performance for the quarter ended March 2018. Murali Natrajan - MD and CEO of the bank addressed the call:
Highlights:

The bank has posted strong 29% growth in loan book to Rs 20337 crore end March 2018 over March 2017. The deposits moved up 24% to Rs 24007 crore, while CASA deposits ratio was flat at 24.3% end March 2018.

As per the bank, the top 20 accounts amounts to 7% of overall loan book, while about 70% of loan book is less than Rs 3 crore in ticket size.

The bank has improved net interest margin to 4.16% in FY2018 from 4.04% in FY2017. The bank continues to witness pressure on margins and its comfortable level of margin is 3.75%.

The bank has exhibited decline in gross NPA ratio on sequential basis to 1.79% end March 2018. The restructured loan book of the bank stood at Rs 34 crore end March 2018. The provision coverage ratio was at robust level of 75.7%.

The securities receipts book of the bank stood at Rs 62 crore end March 2018.

The bank has posted 21% increase in net profit to Rs 64 crore in Q4FY2018.

The bank has posted healthy growth in core fee income driven by distribution fees from health insurance, life Insurance and mutual funds and forex products. The bank has also rationalized ATMs network to support fee income, while sale of priority sector lending (PSL) certificate is also contributing to the fee income.

More than 1000+ employees of the bank are trained to sale insurance products.

The bank expects its cost-to-income ratio to decline to 55% by 4QFY2019.

The employee count of the bank stood at 5790 employees end March 2018.

The bank is looking at adding 15-17 branches per year for next two years.

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